Petroleum and Natural Gas Regulatory Board, the oil sector regulator, has warned all entities for laying pipelines and city gas distribution (CGD) network without the government’s approval. Asking such firms to stop all such activities, the regulator issued a notice on Friday that failure to comply with the orders would result in penalties ranging between three-year imprisonment and/or Rs 25 crore fine.
Companies who have laid pipelines and CGD networks for selling CNG to automobiles and piped gas to households without necessary approvals have been asked to apply for authorisation from the Petroleum and Natural Gas Regulatory Board. They have also been told that in the meantime they should not undertake any such new or incremental activity, said a Board press release here.
Entities like Adani and GSPC had initiated laying of pipelines and setting up of city gas distribution network in Uttar Pradesh and Gujarat respectively on the basis of ‘no-objection’ certification from the state governments.
?Section 48 of the PNGRB Act lays down the penal consequences of undertaking the said activities without authorisation as per which, a person shall be liable for punishment with imprisonment for a term which may extend to three years or penalty of Rs 25 crore or with both,? the regulatory board said.
In case of continued contravention, the erring entity shall be liable for additional fine, which may extend to Rs 10 lakh every day till the contravention continues. ?In view of the above provisions, all entities which propose to undertake any or all of the said activities are hereby informed not to initiate any action till the applications for undertaking such activities are decided and authorisation granted in terms of the regulations being finalised,? the release said.