Oil regulator PNGRB has rejected Adani Total Gas Ltd’s utility for a license to retail CNG to cars and piped gasoline to family kitchens in Noida, at the outskirts of the nationwide capital, on grounds that it does no longer meet standards.
The Petroleum and Natural Gas Regulatory Board (PNGRB) in an order dated July 14 mentioned Adani Total Gas Ltd does no longer satisfy the necessities of the legislation and therefore its utility is rejected.
Adani has been eyeing a town gasoline distribution (CGD) license for towns adjacent the nationwide capital for almost twenty years now.
A company can retail CNG or piped herbal gasoline in a town most effective whether it is licensed by way of the regulator or had permission from the central executive previous to the regulator entering lifestyles.
While Indraprastha Gas Ltd – the three way partnership of state-owned corporations – were licensed for the National Capital Territory of Delhi, Adani has challenged IGL’s declare for adjacent towns.
PNGRB, which got here into being in 2006, authorised town gasoline authorizations given to firms by way of the central executive previous to its lifestyles.
IGL, which were retailing CNG within the NCT of Delhi for the reason that overdue Nineteen Nineties as in step with the orders of the Supreme Court and the union executive, was once given a town gasoline licence.
The company additionally were given the similar for Noida in Uttar Pradesh bringing up an April 8, 2004 authorization letter from the central executive.
IGL has been retailing CNG to cars and piped herbal gasoline to family kitchens and industries in Noida for over one-and-a-half decade now.
Adani Energy Ltd (AEL), which later started Adani Total Gas Ltd (ATGL) after French power large TotalEnergies took a stake within the corporate, on June 25, 2008, claimed authorization for the improvement of a town or native herbal gasoline distribution community ( CGD community) for the geographical house (GA) of Noida.
The regulator may just no longer procedure the appliance on the time of its submission and the problem of authorization for Noida went to the Supreme Court. The apex courtroom in September remaining yr disposed of a petition pronouncing the regulator was once loose to continue in deciding at the dispute.
Thereafter, PNGRB started processing the Adani utility.
It rejected Adani’s utility with two out of the 3 adjudicating participants balloting for that. A 3rd member, Ajit Kumar Pande, Member (Legal), opined that it was once no longer prudent for PNGRB to cross an order because the case was once sub-judice since Adani had filed an utility with the appellate tribunal APTEL.
Other PNGRB participants, Gajendra Singh and AK Tiwari voted in prefer of rejecting the appliance.
“The Board while examining the ATGL application considered the documents submitted with the application dated June 25, 2008, along with their submissions made during the meeting and additional documents submitted thereon.
“It would no longer be misplaced to say that the Board determined unanimously to reject the ATGL utility within the 124th Board Meeting hung on April 25, 2023,” PNGRB said in the order.
PNGRB said an entity could be considered operating prior to the coming into existence of the regulator if it had procured the necessary equipment for erecting the city gate station (CGS).
The ATGL application, it said, stated that “allotment of land for CGS has been taken from Noida authority.”
The application made out that the company had a land possession certificate from Noida authority for five locations but the firm had “no longer procured any important apparatus.”
“Therefore, the Board is susceptible to mention that ATGL (is) no longer complying with the requirement (of the legislation below PNGRB Act),” the order said.
PNGRB also stated that the oil ministry had made a gas allocation to IGL for retailing as CNG and piped natural gas (PNG) in Noida vide a letter dated April 8, 2004. “And AEL was once no longer incorporated in that allocation.”
The company, it said, had not submitted any documentary proof to support its claim that it has got gas allocation.
“It would no longer be misplaced to say that there is not any information with appreciate to the entity’s (Adani’s) provide development in Noida GA to be had with PNGRB. From their submission, it’s noticed that the entity isn’t running in Noida at the moment and The present well being standing in their pipeline laid in Noida could also be unsure,” it said.
In addition, “it’s also noticed that even supposing ATGL was once allotted land for CNG stations in Noida GA, the entity isn’t running any CNG station in Noida,” it added.
The regulator said ATGL had availed sufficient opportunities and “the board hereby rejects ATGL for authorization for the improvement of CGD community in Noida GA because of non-fulfilments of necessities” of PNGRB Act.