Gujarat Gas continues battle with PNGRB
Gujarat Gas is not backing down in its Force Majeure battle with the PNGRB and wants additional time to complete its MWP targets.
After losing its appeal at APTEL, Gujarat Gas filed a petition in the Supreme Court against the PNGRB on August 28 (2024). At stake is Gujarat Gas’s demand for another 24-month extension to achieve prescribed targets under the Minimum Work Programme (MWP) laid down in the authorisation of five city gas license areas: Thane in Maharashtra; Amritsar and Bhatinda in Punjab and Amreli and Dahod in Gujarat.
Gujarat Gas cites the Covid pandemic in 2020 to justify its demand. "Given the significant impact of Covid-19 and the resulting challenges experienced by all CGD companies, the PNGRB authorised a Force Majeure provision," says a PNGRB source.
"This provision granted a blanket extension of 24 months and an additional period for corrective actions; the MWP targets outlined in the authorisation letter cannot be changed, and Gujarat Gas cannot use Force Majeure as an excuse to cover its performance deficiencies or failures." On April 26 (2024), a two-member APTEL bench of judicial member Virender Bhat and technical member Dr Ashutosh Karnatak ruled: "The PNGRB is correct in holding that the Gujarat Gas challenge is devoid of merit and is not eligible for an additional 24 months; Gujarat Gas miserably failed to achieve the MWP targets even after giving the benefit of Force Majeure of 24 months en-bloc extension."
Despite receiving a 24-month blanket Covid-19 extension, Gujarat Gas had only achieved 16,106 household piped gas connections in Amritsar by May 2022, compared to its 24,445 target, and installed 2134.43-inch km of steel and plastic pipelines against a 953.28-inch km target. In Bhatinda, it managed just 3344 household piped gas connections against a 13,695 target and installed 926.14-inch km of pipelines against a 1209-inch km goal.
Similar performance gaps were seen in Thane, Amreli, and Dahod, where Gujarat Gas failed to meet MWP targets.