IOC-Adani wins CNG rights for Ghaziabad

Last Updated: Tuesday, September 22, 2009 - 18:35

New Delhi: After Chandigarh and Allahabad,
Indian Oil Corp and Adani Energy combine has bagged rights to
retail CNG to automobiles and piped gas to industries in
Ghaziabad by quoting nil or zero pipeline tariff.

Petroleum and Natural Gas Regulatory Board (PNGRB) today
opened price bids for Ghaziabad - last of the seven cities for
which it had called bids for giving out city gas distribution
licence - and ranked IOC-Adani combine as the most preferred,
sources in the Board said.

Gujarat`s GSPC Gas came second among the six bidders.

PNGRB, however, cannot issue a licence because of a Delhi
High Court order restraining it from doing so till the time
the court decides on a petition challenging its authority to
issue licences.

Sources said PNGRB had asked the companies to quote only
the tariff that they will charge for transporting gas within
the perimeters of a city and left the final selling price of
the fuel for the companies to decide.

This provision of `zero` tariff, sources said, is made up
by companies through CNG charges levied from users - household
or industries - as they deem fit.

IOC-Adani combine quoted `zero` pipeline tariff for all of
the 25 years of the licence, making a mockery of the entire
exercise. They had previously quoted zero pipeline tariff for
25 years in Chandigarh and the same for seven years in
Allahabad.

Bureau Report



First Published: Tuesday, September 22, 2009 - 18:35

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