Adani fury with PNGRB over Lucknow rejection

Vol 19, PW 14 (24 Mar 16) People & Policy

Adani Gas is furious with the PNGRB for rejecting its application to set up a retail gas network in Lucknow in favour of rival Green Gas - sharply criticising it as a violation of 'natural justice.' On March 15 the PNGRB released an order signed by four of five members accusing Adani of spending just 9.89% of its Rs109.24cr ($11.3m) committed project cost for five years by October 1, 2007 when it should have spent 25%.

Worse, the PNGRB claims Adani has no land for city gate stations or a firm gas source. But an Adani source pounces on an (apparent) discrepancy in the six-page order which says Adani completed 30.21% of the work by October 1, 2007.

"How can the PNGRB claim we spent only 9.89% when we completed 30.21% of the work?" we hear. "Are they saying we got the pipes, the equipment, land, and pipeline laying work for free?" Adani counters that its lack of a firm gas source is down to GAIL's refusal to let it connect to a gas transmission pipeline.

"How could we source gas without connectivity?" Adani describes as 'shocking' the eight years it has taken the PNGRB to decide its Lucknow application after it sought authorisation on June 11, 2008. Had it signed a gas supply contract, argues Adani, it would have been forced to pay take or pay charges for eight years.

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