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PNGRB to move SC against Delhi HC order favouring IGL

The Petroleum and Natural Gas Regulatory Board is preparing to move the Supreme Court challenging the May 28 order of the Delhi High Court that favoured the Indraprastha Gas Ltd (IGL) in a tariff dispute.

The Petroleum and Natural Gas Regulatory Board (PNGRB) is preparing to move the Supreme Court challenging the May 28 order of the Delhi High Court that favoured the Indraprastha Gas Ltd (IGL) in a tariff dispute.

The regulatory board has sought an opinion from the additional solicitor general (ASG) on the HC ruling that held the regulator’s order asking IGL to cut network tariff retrospectively as ‘illegal’ .

The Delhi High Court had also said that PNGRB is not entitled to fix the price.

?We will definitely file an appeal in the Supreme Court… we have sought an opinion of ASG but we haven’t received it yet. We have all right to fix tariff… the board will take a decision soon,? a senior PNGRB official close to the development said on condition of anonymity. IGL officials, however, declined to comment on the development.

?The provisions of PNGRB Act give limited powers to the regulator as far as the tariff regulation function for the CGD sector is concerned,? K Ravichandran, senior vice president and co-head, corporate rating of ICRA said.

Indraprastha Gas Limited had approached the High Court in an order from the regulator to cut it’s network tariff to Rs38.58 per million British thermal unit as against Rs104.05, down by around 63%. The regulator fixed CNG compression tariff at Rs2.75 a kg against Rs 6.66/kg charged by Indraprastha Gas Limited .

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First published on: 06-06-2012 at 01:45 IST
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