The Hindu Business Line : IGL gets exclusivity for gas distribution network in Delhi

New Delhi, Jan. 5 Indraprastha Gas Ltd (IGL) has been granted exclusivity for implementing city gas distribution network in the entire national capital territory of Delhi by the Petroleum & Natural Gas Regulatory Board (P&NGRB). With this, all speculations about authorisation of IGL to implement the network have been put to rest.

IGL is the sole supplier of compressed natural gas (CNG) and piped natural gas (PNG) in the national Capital. In a statement issued here, IGL said that it has received a communication from the Regulatory Board to this effect.

“In a communication, P&NGRB has finally accepted that IGL is the only authorised entity for implementation of Delhi City Gas Distribution Project – supply of CNG for transport sector and PNG for kitchens in the entire NCT of Delhi,” the company said.

IGL has been asked to abide by provisions of P&NGRB Act 2006 and follow Technical standards and specifications, including safety standards. Targets have also been set for further expansion of its network in the form of project milestones, the company said.

According to the P&NGRB regulations, marketing exclusivity for existing Central Government authorised entities is for a period of three years and network exclusivity for them is for 25 years.

Incorporated a decade ago according to the mandate of the Supreme Court, IGL is a joint venture of navratna PSUs, GAIL (India) Ltd and Bharat Petroleum Corporation Ltd along with Government of NCT of Delhi.

Commenting on the development, Mr Rajesh Vedvyas, Managing Director, IGL said, “The New Year has begun on a happy note for us with the development that P&NGRB has accorded its ‘acceptance’ to the authorisation with IGL to implement the city gas distribution project in the entire NCT of Delhi.”

According to plans submitted to the Regulatory Board, IGL targets to take the number of domestic PNG connections from 1,32,000 currently to 2,37,000 by 2011-12.

IGL’s shares were up 7.5 per cent on the NSE on Monday to close at Rs 111.50.

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