The Hindu Business Line : ‘Govt approval mandatory for gas pipelines venture’

New Delhi, Nov. 3 The Petroleum & Natural Gas Regulatory Board (P&NGRB) has cautioned companies against venturing into laying down gas pipelines and city gas distribution network without prior Government approval.

In a statement issued here, the regulator has said that foray into these activities without Government approval will attract penalties of three years imprisonment or Rs 25 crore or both.

The companies, which have laid pipelines or set city gas distribution networks for selling compressed natural gas for automobiles and piped natural gas for households without authorisation, have been asked to get necessary approvals from the regulator.

In the meantime, the companies have been asked not to undertake any such new incremental activity or activities without mandatory approvals, the statement said.

Entities such as GSPC (Gujarat) and Adani (Uttar Pradesh) have initiated activities based on ‘no objection’ certificate from the respective State Governments.

Penal consequences

According to the statement, Section 48 of the PNGRB Act stipulates the penal consequences of undertaking the said activities without authorisation. In case of continued contravention, the defaulting entity shall be liable for additional fine which may extend to Rs 10 lakh per day till the contravention continues, it said.

“In view of the above provisions, all entities which propose to undertake any or all of the said activities, are hereby informed not to initiate any action till the applications for undertaking such activities are decided and authorisation granted in terms of the regulations being finalised,” the release said.

The companies have been asked to furnish all information within a stipulated timeframe as per the prescribed format.

Companies that have initiated any of these activities prior to October 1 without any authorisation, may apply for approvals under the provisions of the PNGRB Act, 2006. In the meantime, they are required not to undertake any such new or incremental activity or activities without obtaining authorisation, it said.

The regulator became fully operational from October 1 after the Petroleum Ministry issued notification establishing the Board.

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