The application submitted by Adani Total Gas Ltd to obtain a license for retailing CNG to automobiles and piped gas to household kitchens in Noida, located on the outskirts of the national capital, has been dismissed by the oil regulator PNGRB. The grounds for rejection are based on the company’s failure to meet the necessary criteria as outlined by the Petroleum and Natural Gas Regulatory Board (PNGRB) in their order dated July 14. According to PNGRB, Adani Total Gas Ltd does not meet the legal requirements, resulting in the rejection of their application.
Adani has been striving to acquire a city gas distribution (CGD) license for cities neighboring the national capital for nearly two decades. However, in order to retail CNG or piped natural gas within a city, a company must be authorized by the regulator or have obtained permission from the central government prior to the establishment of the regulator.
While Indraprastha Gas Ltd (IGL), a joint venture of state-owned firms, was granted authorization for the National Capital Territory of Delhi, Adani has challenged IGL’s claim for the surrounding cities. PNGRB, which came into existence in 2006, recognizes city gas authorizations granted by the central government before its establishment.
The application submitted by Adani Total Gas Ltd to obtain a license for retailing CNG to automobiles and piped gas to household kitchens in Noida, located on the outskirts of the national capital, has been dismissed by the oil regulator PNGRB. The grounds for rejection are based on the company’s failure to meet the necessary criteria as outlined by the Petroleum and Natural Gas Regulatory Board (PNGRB) in their order dated July 14. According to PNGRB, Adani Total Gas Ltd does not meet the legal requirements, resulting in the rejection of their application.
Adani has been striving to acquire a city gas distribution (CGD) license for cities neighboring the national capital for nearly two decades. However, in order to retail CNG or piped natural gas within a city, a company must be authorized by the regulator or have obtained permission from the central government prior to the establishment of the regulator.
While Indraprastha Gas Ltd (IGL), a joint venture of state-owned firms, was granted authorization for the National Capital Territory of Delhi, Adani has challenged IGL’s claim for the surrounding cities. PNGRB, which came into existence in 2006, recognizes city gas authorizations granted by the central government before its establishment.
IGL has been retailing CNG to automobiles and providing piped natural gas to household kitchens and industries in Noida for over fifteen years. On the other hand, Adani Energy Ltd (later renamed Adani Total Gas Ltd after a partnership with TotalEnergies) claimed authorization for the development of a city gas distribution network in Noida back in 2008. However, due to the ongoing legal proceedings, PNGRB was unable to process Adani’s application at the time.
The matter eventually reached the Supreme Court, which permitted PNGRB to proceed with making a decision on the dispute. Consequently, PNGRB reviewed and subsequently rejected Adani’s application, with two out of three adjudicating members voting in favor of rejection. The third member, Ajit Kumar Pande, expressed the opinion that passing an order would be imprudent as the case was still sub-judice since Adani had filed an application with the appellate tribunal APTEL.
PNGRB emphasized that Adani Total Gas Ltd failed to fulfill the requirements stated in the PNGRB Act, citing reasons such as the company’s lack of necessary equipment and supporting documentation. Additionally, PNGRB pointed out that the oil ministry had allocated gas to IGL for retailing as CNG and piped natural gas in Noida, whereas Adani was not included in that allocation. The order also highlighted the absence of current operational data or evidence of progress from Adani in Noida.
Considering these factors, PNGRB concluded that Adani Total Gas Ltd had not fulfilled the requirements and therefore rejected their application for authorization to develop a city gas distribution network in Noida.
