Gas regulator body cannot set IGLís retail prices, rules SC

Petroleum and Natural Gas Regulatory Board had resorted to indirect method to control gas tariff

GN Bureau | July 1, 2015


#indraprastha gas   #natural gas   #supreme court   #delhi high court  

Upholding verdict of Delhi high court, the supreme court on Wednesday said that the Petroleum and Natural Gas Regulatory Board (PNGRB) cannot set tariff for Indraprastha Gas Ltd (IGL).

The PNRGB’s dispute with Indraprastha Gas was over its gas transportation tariff. During the court case it was argued that PNGRB was trying to indirectly regulate prices of IGL as transport is an essential cost in the final pricing.

The gas regulator had also admitted that it did not have the powers to regulate the final retailing price. However, it argued that it does have the powers as per the statute to fix the transmission tariff. It had slashed the transportation and compression charges that IGL could levy by 64 percent.

The dispute began in April 2012 when PNRGB directed IGL to cut its retail prices. IGL moved court, and the high court backed the company, saying there were no statutory provisions that allowed PNRGB to fix retail gas prices. The PNGRB had appealed against the high court order in the supreme court.

The central government had also supported IGL's stand that PNGRB does not have the authority to regulate retail gas prices.

Meanwhile, shares of IGL surged as much as 17.8 percent after the SC verdict in its favour.

Comments

 

Other News

Demonetisation: When cash played peek-a-boo

Post-demonetisation, cash did the Houdini vanishing trick at ATMs. With currency notes playing hide and seek, life was sheer misery. Things improved a bit, but the situation is back to square one. The ATMs are running dry, yet again. Rajiv Bajaj, scion of the family that makes hugely popular

Stories you must read over the weekend

  Tribals in the land of the legendary Birsa Munda in Jharkhand are fighting against the amendments of the Chotanagpur Tenancy Act (CNTA) and Santhal Pargana Tenancy Act (SPTA). These were hastily changed by the BJP government – first by an ordinance in June, and then, amendments i

NHRC recommendations cannot be set aside with impunity: justice Bhandari

  Recommendations by the National Human Rights Commission (NHRC) cannot be set aside with impunity merely on the ground that it is a recommendatory body,” said justice Dalveer Bhandari, member, international court of justice.    Addressing the meet

NALCO mines get 5-star rating for sustainable development initiatives

   The Panchpatmali bauxite mines of national aluminum company limited (NALCO) has been conferred with a 5-star rating by the ministry of mines.   The 5-star rating award, along with a certificate of excellence was handed over to Tapan Kumar Chand, CMD,

Some Odisha coal mines not being fully utilised

It is a fact that some of the opencast projects (OCP) of Mahanadi Coalfields Limited (MCL), a subsidiary of Coal India Limited, are not being utilised up to their full capacity despite having good potential for coal production, the Lok Sabha was informed. Union minister Piyush Goyal said tha

MGNREGS: 21 states have performed below par

In Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), the average persondays generated at the national level is 39 days per rural household in the financial year (FY) 2016-17 (as on February 1, 2017). During the same period, 21 states have reported average persondays per household lower t

Video

आतंकियों की नकेल कसने में जुटा पाकिस्तान
Digital Transformation Summit

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter