The Petroleum and Natural Gas Regulatory Board (PNGRB) has sought more time to respond to Petroleum Ministry's move to take away its powers to issue CNG retailing licences. The oil regulator has said that a view on the guidelines will have to be taken by the full Board and it needs 7-10 days more to respond.
The Ministry, on March 5, issued 'Draft Guidelines for Granting Marketing Rights for CNG as Transportation Fuel, including setting up CNG Stations' wherein any entity that has invested Rs 500 crore in oil and gas infrastructure can get rights or licence to retail the fuel to automobiles by setting up CNG stations, while the ministry stated that the companies which invested a minimum of Rs 2,000 crore in oil and gas infrastructure were granted marketing rights for petrol, diesel and ATF through the March 2002 notification. The eligible entities under these guidelines shall apply to the Government for issuance of 'Grant of Marketing Rights for CNG as transportation fuel.
As per earlier practice since 2006, entities applied to PNGRB and not the government for rights to retail CNG alongside selling natural gas as fuel within city limits. As per the draft guidelines, while PNGRB has been issuing the licence to retail CNG as well as piped natural gas (PNG), now it pertains only to rights to sell CNG. The guidelines further states that firms who get CNG marketing rights will get natural gas allocation and can book capacities in existing pipelines to transport the fuel.
PNGRB recently opened fifth round of bidding for city gas distribution (CGD) licences even though it had issued license to entities for only first two rounds. Licences for the remainder are stuck over disputes.