The oil ministry and the Petroleum and Natural Gas Regulatory Board (PNGRB) seem to have locked horns over recognising city gas distribution companies such as Indraprastha Gas Ltd (IGL), which operates in the national capital region (NCR). IGL has been permitted by the ministry to operate as a city gas distributor even before the regulator came into being. The ministry recently overruled PNGRB’s s contention that IGL should be required to submit an application afresh to the regulator. But, the board has stuck to its ground that the company must approach it first before going ahead with any of its business plans. When contacted, officials in the Reulatory board denied having received any communication from the ministry on this regard.

In its letter, the ministry clearly has stated that PNGRB Act 2006 cannot be applied with retrospective effect in case of city gas distribution business. The ministry took a call on this issue after the regulator challenged the authority of (IGL) to distribute gas in NCR this March.

The ministry has said in the letter that IGL having central government approval before the formation of the regulator need not apply for authorisation to the board.