Marketing about-turn at PNGRB
In another about turn, the PNGRB has cancelled its previous notices issued on September 13 (2021), ending marketing exclusivity in 54 CGD areas.
On May 27 (2024), the PNGRB released the latest notice withdrawing the previous orders: "By virtue of regulation 8 of newly enacted PNGRB (Guiding Principles for Declaring City or Local Natural Gas Distribution Networks as Common Carrier or Contract Carrier) Regulations, 2024, the PNGRB Regulations, 2020, stand repealed." On May 2 (2024), we reported that the PNGRB was considering whether to grant marketing exclusivity extensions on a case-by-case basis, just weeks after chairman AK Jain insisted open access "is here to stay."
In the new order, the PNGRB lists 54 areas, including those awarded from CGD-I to CGD-V, plus some awarded before the PNGRB was formed. Why has the PNGRB backed down? Most likely because of Gujarat Gas's legal challenge filed in the Delhi High Court in September (2021) against the September 13 (2021) PNGRB order ending marketing exclusivity.
Gujarat Gas had the most to lose, with 13 of its authorised areas featured on the list. GAIL Gas, with six regions, comes second, and IOAGPL, with five areas, comes third.
Indraprastha Gas with Delhi and Mahanagar Gas with the Greater Mumbai area also stood to lose. Gujarat Gas argued in the Delhi court that the PNGRB's September 2021 order was issued without a minimum of at least two members: only member Gajendra Singh was present.
On October 11 (2021), Delhi High Court Chief Justice DN Patel and Justice Jyoti Singh agreed with Gujarat Gas senior counsel Parag Tripathi and issued a stay order against the September 13 (2021) notice.