Licence for CNG and piped gas retail in Noida denied to Adani Total Gas.

Adani Total Gas Ltd’s Application for CNG Retailing License in Noida Rejected by PNGRB

The Petroleum and Natural Gas Regulatory Board (PNGRB) has rejected Adani Total Gas Ltd’s application for a license to retail compressed natural gas (CNG) to automobiles and piped gas to household kitchens in Noida, on the outskirts of the national capital. The decision was made on the grounds that Adani Total Gas Ltd does not meet the criteria set by the law.

Adani’s Long-standing Efforts for a City Gas Distribution License

Adani has been attempting to obtain a city gas distribution (CGD) license for cities adjoining the national capital for almost two decades. However, the application by Adani Total Gas Ltd has been challenged by Indraprastha Gas Ltd (IGL), the joint venture of state-owned firms, which has been authorized for the National Capital Territory of Delhi.

PNGRB’s Rejection and Reasons Behind It

The PNGRB, which came into existence in 2006, accepts city gas authorizations given by the central government prior to its establishment. However, it rejected Adani’s application as it failed to fulfill the requirements of the law. The regulator stated that Adani Total Gas Ltd had not procured the necessary equipment for erecting the city gate station (CGS) and did not provide any documentary proof of gas allocation in Noida. Additionally, there was no data available regarding Adani’s current progress in Noida.

Decision and Voting

The rejection of Adani’s application was supported by two out of three adjudicating members of the PNGRB, Gajendra Singh and A K Tiwari, while Ajit Kumar Pande, Member (Legal), expressed his opinion that passing an order while the case is sub-judice would not be prudent. The Board unanimously decided to reject the application in the 124th Board Meeting held on April 25, 2023.

Summary:

• The PNGRB has rejected Adani Total Gas Ltd’s application for a license to retail CNG and piped gas in Noida.
• Adani has been pursuing a CGD license for nearly two decades.
• Indraprastha Gas Ltd has challenged Adani’s claim for adjoining cities.
• PNGRB rejected the application due to non-compliance with requirements and lack of necessary equipment and proof of gas allocation.
• Two out of three adjudicating members voted in favor of the rejection.