Indraprastha Gas challenges PNGRB order on natural gas tariff

Indraprastha Gas Limited (IGL)  has approached the Delhi High Court challenging the constitutionality and legality of the powers of the Petroleum and Natural Gas Regulatory Board (PNGRB) to fix the tariff.

M Ravindran, managing director, IGL, said at a press conference today, "No separate communication has been received as yet from PNGRB ... no opportunity for personal hearing given to IGL. IGL has approached the Delhi High Court." The company was expecting a hearing to be held in a day or two.

The company plans to make changes to consumer tariff only after the court hearing.

GAIL (India) chairman and managing director, BC Tripathi, reacting to the news, said, it would have a negative impact on the industry. He added,  in an otherwise depressed scenario -- domestic gas availability was on the decline and its dependence on LNG growing -- city gas distribution (CGD) was the only category where the industry was looking at growth and expansion.

Terming the order as not practical to implement, he said, in the sector it was not possible to implement price changes with retrospective effect. He said in the business, there were no fixed customers, so there was no way to assess.

He added the order was highly disconnected from the ground reality and would prove to be negative for all entities in the business. He said, the role of PNGRB was to look at the larger market.