Govt backs IGL against PNGRB; no final decision yet

Govt backs IGL against PNGRB; no final decision yet 

Delhi High Court had earlier struck down the Petroleum and Natural Gas Regulatory Board (PNGRB) order that sought to regulate prices, clearly holding that there are no statutory provisions that allow the board to make any such moves with respect to fixing of retailing prices. The issue at hand is whether or not the PNGRB the board has the power to regulate transmission tariffs. PNGRB thereafter appealed against the Delhi High Court order in the Supreme Court. It had conceded that it does not have the powers to regulate the final retailing price. However, it is also arguing that it does have the powers as per the statute to fix the transmission tariff, which is clearly an indirect means of regulating the final tariff and that is the contention that IGL is raising – though there is no statutory provision PNGRB the board is trying to do so through an indirect means. Meanwhile, the government backs Indraprastha Gas Limited (IGL) against PNGRB in the case stating that PNGRB is not empowered to determine retail prices. However, there is no final decision on the same yet and the apex court will continue hearing the case tomorrow.

http://www.moneycontrol.com/news/cnbc-tv18-comments/govt-backs-igl-against-pngrb-no-final-decision-yet_1224830.html

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