Oil regulator proposes bidding for laying city gas networks
The Petroleum and Natural Gas Regulatory Board (PNGRB) proposed a competitive bidding process to select public and private entities for developing city gas distribution networks in the country.
By PTI |
NEW DELHI: The Petroleum and Natural Gas Regulatory Board (PNGRB) on Thursday proposed a competitive bidding process to select public and private entities for developing city gas distribution networks in the country.
The downstream oil regulator issued draft regulations which contain the proposed method for selection of companies and building or expansion of local gas distribution networks.
The draft also contains regulations for determination of network tariff for the gas networks. PNGRB invited comments of stakeholders and experts to finalise the draft regulations.
"Once finalised, these regulations would pave the way for the development of city gas distribution networks in different parts of the country in a systematic manner," the regulator said in a statement.
These regulations would facilitate in attracting investment in the development of gas distribution networks, while protecting the interests of the consumers. Such networks would have to follow technical standards and specifications as may be prescribed by the Board.
As per the proposal, the Board may on its own invite preliminary bids from entities interested in laying, operating or expanding a network for any specified geographical area. The bids would then be evaluated based on the technical and tariff details submitted by the entities.
At present, state governments authorise companies to lay city gas distribution networks on the basis of their own parameters, which need not include competitive bidding.
State-run Engineers India Ltd has been authorised to receive and compile the information on behalf of the Board.
The downstream oil regulator issued draft regulations which contain the proposed method for selection of companies and building or expansion of local gas distribution networks.
The draft also contains regulations for determination of network tariff for the gas networks. PNGRB invited comments of stakeholders and experts to finalise the draft regulations.
"Once finalised, these regulations would pave the way for the development of city gas distribution networks in different parts of the country in a systematic manner," the regulator said in a statement.
These regulations would facilitate in attracting investment in the development of gas distribution networks, while protecting the interests of the consumers. Such networks would have to follow technical standards and specifications as may be prescribed by the Board.
As per the proposal, the Board may on its own invite preliminary bids from entities interested in laying, operating or expanding a network for any specified geographical area. The bids would then be evaluated based on the technical and tariff details submitted by the entities.
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At present, state governments authorise companies to lay city gas distribution networks on the basis of their own parameters, which need not include competitive bidding.
State-run Engineers India Ltd has been authorised to receive and compile the information on behalf of the Board.
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