HC notice to petroleum regulator over IGL plea

The Delhi High Court has issued a notice to Petroleum and Natural Gas Regulatory Board (PNGRB) on Indraprastha Gas Ltd’s (IGL) lawsuit challenging the regulator’s order denying it the right to set up retail outlets and laying pipelines for domestic consumption.

IGL said the regulator couldn’t impose its authority on it because it’s not a public sector undertaking.

Judges said since the shareholding of IGL isn’t before them, they couldn’t decide whether IGL is a public sector outlet or not, but they would examine the regulator’s powers.

IGL said the PNGRB was issuing letter of intent (LoI) to private companies under the self made Petroleum and Natural Gas Regulatory Board (Authorising Entities to Lay, Build, Operate or Expand City Gas Distribution Networks) Regulations 2008.

A bench of Justices M B Lokur and A K Pathak also issued notice to the Union petroleum ministry.

The gas distributor had applied for gas distribution network licence for Ghaziabad, neighbouring Delhi in December 2006 and operating in Ghaziabad under the directions of the Environment Pollution Control Authority (EPCA).

Without disclosing any reasons, the regulator informed IGL that EPCA authorisation was not enough for grant of a licence for Ghaziabad and called for a hearing.

The IGL’s lawsuit assumes importance as the court could examine the character of the gas supply company in view of its claim that it’s not a public sector undertaking.