IGL upset over Sonipat CGD bids

Vol 12, PW 20 (12 Mar 09) News in Brief

Delhi-based Indraprastha Gas is upset with the gas regulator over a decision to invite bids to set up a retail gas network in the Haryana town of Sonipat, around 28-km from Delhi.

Sonipat is one of six towns offered in October last year for which bids were received on March 3. IGL is angry because in 2006 it was awarded a No Objection Certificate (NOC) by the Haryana state government to set up a network but now finds itself competing against rival bids from GAIL’s newly incorporated retail subsidiary GAIL Gas, a consortium of Adani Energy and Indian Oil, Cairn India allied with Bharat Petroleum and little known DCM Infrastructure.

Some observers question the wisdom of the regulator in offering Sonipat when Indraprastha Gas already has rights to operate there. “If the regulator can give â€کdeemed authorisation’ to other GAIL promoted joint ventures like Mahanagar Gas and Maharashtra Natural Gas,â€‌ complains a source, “then why can’t it give the same to IGL