After a legal battle of about 27 months, the Gujarat High Court has ruled in favour of State-run City Gas Distribution (CGD) player Gujarat Gas Ltd (GGL) in a case relating to unauthorised development of CGD network in Ahmedabad district area by the private sector player Adani Gas.

In its ruling on September 28, the Gujarat High Court dismissed the petition of Adani Gas, and upheld the rights of GGL to develop infrastructure for supply of PNG, CNG and natural gas to commercial and industrial units in the areas of Sanand, Bavla and Dholka of Ahmedabad district.

The said areas hold significant gas demand potential and can lead to remarkable improvement in the top line of the CGD player.

The High Court order paves the way for supply of natural gas as a clean and green fuel in the areas of Sanand, Bavla and Dholka which will in turn help in keeping air pollution levels in control once the infrastructure is ready.

Earlier, GGL had filed a complaint with the regulator Petroleum and Natural Gas Regulatory Board (PNGRB), accusing Adani Gas of unauthorised expansion of its gas distribution network in these locations.,

Adani Gas, which had lost in the bidding process, approached the Gujarat High Court and obtained a stay, which was seen as hampering the development of infrastructure for commencing supply of PNG and CNG in these areas.

Gujarat Gas remains the country’s largest CGD player having around 20,000 km of gas pipeline network under its operations and caters to over 11.6 lakh households and 3,050 industrial customers.

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