The government\'s plan to promote natural gas as a cleaner transportation and industrial fuel may remain a pipe dream, with the Petroleum and Natural Gas Regulatory Board (PNGRB) caught in internal strife, unable to allocate city gas distribution projects according to schedule.
The PNGRB was set up in 2006 by the Centre to expedite development of oil and gas supply infrastructure in the country. The regulator has envisaged awarding 201 city gas distribution (CGD) projects by 2015. Against that, it has so far allocated licences for only 13 CGD projects under the first and second rounds of bidding held in 2009. The regulatory board\'s functioning has been constrained as its members and chairman are at loggerheads. Board members have already moved the court against what they call the arbitrary way of functioning of the chairman.
The undue delay in allocation of CGD projects has started exacting its toll on confidence of investors, who are made to wait endlessly for licences after making substantial investments in undertaking feasibility survey, industry sources told FE. Further, industrial and commercial consumers with natural gas demand up to 50,000 standard cubic metre per day (scmd) are also suffering as they are required to meet their fuel demand from CGD projects. There is a huge demand for natural gas from such consumers in various states.
Licences for CGD projects which were put up for auction in the third and fourth rounds of bidding started by the regulatory board last year are yet to be awarded.
Technical bids were opened on February 18 for the third round of bidding for allocation of licences for seven CGD projects in cities including Ludhiana, Asansol, Jallandhar, Kutch West, Bhavnagar and Jamnagar. As many as 51 players participated in the third round of bidding. But price bids are yet to be opened.
The PNGRB kicked off the process for the fourth round of bidding on September 29 for allocation of licences for eight CGD projects in cities including Ernakulam, Guna, Alibag-Pen, Guna and Shahjahanpur. But no one knows when the bidding process will be concluded. Bidding has already been postponed seven times. Also, the PNGRB wants to add more bid evaluation parameters. It has called for an open house meeting to seek bidders\' inputs. However, some private bidders told FE that changing the bidding criteria midway is not in line with the regulations. They suspect the PNGRB is trying to influence the outcome of the bidding through the open house meet.
Oil PSUs, including GAIL, IOC and BPCL, are also in the race for CGD project licences. Since most of the PNGRB staff are employees of oil PSUs working on deputation, their is an obvious conflict of interest, private players point out.
The PNGRB was set up in 2006 by the Centre to expedite development of oil and gas supply infrastructure in the country. The regulator has envisaged awarding 201 city gas distribution (CGD) projects by 2015. Against that, it has so far allocated licences for only 13 CGD projects under the first and second rounds of bidding held in 2009. The regulatory board\'s functioning has been constrained as its members and chairman are at loggerheads. Board members have already moved the court against what they call the arbitrary way of functioning of the chairman.
The undue delay in allocation of CGD projects has started exacting its toll on confidence of investors, who are made to wait endlessly for licences after making substantial investments in undertaking feasibility survey, industry sources told FE. Further, industrial and commercial consumers with natural gas demand up to 50,000 standard cubic metre per day (scmd) are also suffering as they are required to meet their fuel demand from CGD projects. There is a huge demand for natural gas from such consumers in various states.
Licences for CGD projects which were put up for auction in the third and fourth rounds of bidding started by the regulatory board last year are yet to be awarded.
Technical bids were opened on February 18 for the third round of bidding for allocation of licences for seven CGD projects in cities including Ludhiana, Asansol, Jallandhar, Kutch West, Bhavnagar and Jamnagar. As many as 51 players participated in the third round of bidding. But price bids are yet to be opened.
The PNGRB kicked off the process for the fourth round of bidding on September 29 for allocation of licences for eight CGD projects in cities including Ernakulam, Guna, Alibag-Pen, Guna and Shahjahanpur. But no one knows when the bidding process will be concluded. Bidding has already been postponed seven times. Also, the PNGRB wants to add more bid evaluation parameters. It has called for an open house meeting to seek bidders\' inputs. However, some private bidders told FE that changing the bidding criteria midway is not in line with the regulations. They suspect the PNGRB is trying to influence the outcome of the bidding through the open house meet.
Oil PSUs, including GAIL, IOC and BPCL, are also in the race for CGD project licences. Since most of the PNGRB staff are employees of oil PSUs working on deputation, their is an obvious conflict of interest, private players point out.
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