The Hindu Business Line : Petroleum, gas regulator favours spot gas purchase

Ahmedabad, Sept 10 The Petroleum and Natural Gas Regulatory Board (PNGRB) would encourage purchase of gas in spot market to augment supplies in India and favours a ‘roll-back’ of subsidy in LPG, its Chairman, Mr L. Mansingh, said here.

At its second round-table meeting after Hyderabad, organised under the aegis of Confederation of Indian Industry (CII), he said the regulator would encourage the emerging spot gas market to ensure supplies. “We will also have different prices for different categories of consumers and entities,” he said.

Replying to questions, Mr Mansingh said the regulator has taken up with the Union Government the issue of a phased roll-back of subsidy on LPG in view of the expanding city gas distribution (CGD) system across India. “Even the Planning Commission of India has supported us.” The Eleventh Plan has accorded the third highest priority to CGD after fertiliser and power sectors, he added.

Cooperative sector

Asked about the regulator’s view of the Charotar Gas Sahakari Mandali Ltd, the country’s only CGD in the cooperative sector with about 7,000 customers in Anand (Gujarat), he favoured separate regulations for such entities. “An entity has to be registered under the Companies Act at the time of bidding. However, if they want to continue as a cooperative society, we could consider their case.”

Mr A.J. Parmar, Managing Director of Charotar Gas, however, told Business Line that a society, registered under the Cooperatives Act of the Gujarat Government, cannot be registered under the Companies Act. It was yet to be seen how the new regulations work out in such cases. To a query, Mr Mansingh said the regulator would provide online access to those dealing with it but could also open regional offices, if necessary.

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