AG&P wins appeal against Torrent at APTEL
Manila-based AG&P subsidiary AGP City Gas has won an important victory against Torrent Gas over who can operate CNG stations in Kanchipuram city in Tamil Nadu.
On May 15 (2024), the Appellate Tribunal for Electricity (APTEL) ruled in favour of AGP by overturning a December 22 (2022) PNGRB ruling saying. "The impugned order passed by the Board (PNGRB) must be, and is accordingly, set aside," said APTEL.
In its ruling, the PNGRB dismissed AGP's petition, ruling for Torrent. At stake is whether Torrent had the right to set up 19 CNG stations in Kanchipuram, authorised by the PNGRB to AGP.
Torrent's Chennai and Tiruvallur areas are adjacent to Kanchipuram. "We hold that the subject 19 CNG stations are located within the then Kanchipuram district, and since the Kanchipuram district GA (GA 9.61) is co-terminus with the then Kanchipuram district, these 19 CNG stations must be held to fall within the boundaries of Kanchipuram district GA," ruled APTEL.
"Torrent shall cease and desist from laying, building or operating any of these 19 stations." A source believes the maps used to define areas are to blame.
"Until CGD-IX, the PNGRB used to award areas based on GIS (a specialist mapping software) maps," we learn. However, after CGD-IX, the PNGRB used Survey of India maps and awarded areas based on district limits.
"Awarding areas based on district limits was introduced to save on legal and administrative challenges," adds our source. "If the area awarded to an operator falls under a single district, it becomes easier for the operator to get all the clearances and statutory approvals from the local administrative offices."
However, when a CGD area straddles two separate districts, the operator must secure clearances from two separate administrative offices. Kanchipuram and the Chennai and Tiruvallur areas were awarded in CGD-IX in line with GIS maps, where the district boundaries were not well defined.
AGP wanted Torrent to pay Rs3cr ($361,200) for each CNG station. But for this, APTEL asked AGP to file a fresh petition with the PNGRB.
APTEL chairperson justice Ramesh Ranganathan and technical member Ashutosh Karnatak signed the order.