Proposed Amendments to PNGRB Act, 2006

1. Proposed Amendments to PNGRB Act, 2006

42. ----- Reference by Central Government or Statutory body (1) Where in the course of a proceeding before the Central Government or a Statutory body, an issue is raised by any party that any decision would pertain to any of the provisions of this Act, then the Central Government or Statutory body shall make a reference in respect of such issue to the Board: Provided that the Central Government or any statutory body, may, suomotu, make such a reference to the Board. (2) On receipt of a reference under sub-section (1), the Board shall give its opinion, within sixty days of receipt of such reference, to the Central Government or statutory body which shall consider the opinion of the Board and thereafter, give its findings recording reasons therefor on the issues referred to in the said opinion.   This enabling provision is essential for the Board to give its opinion on any matter pertaining to the subject matter of any provision of the Act.

43. The provisions of sections 120 to 124 (both inclusive) of the Electricity Act, 2003 (36 of 2003) shall mutatis mutandis apply to the Appellate Tribunal in the discharge of its functions under this Act as they apply to it in the discharge of its functions under the Electricity Act, 2003. The provisions of sections 120, 122, 123 and 124 of the Electricity Act, 2003 (36 of 2003) shall mutatis mutandis apply to the Appellate Tribunal in the discharge of its functions under this Act as they apply to it in the discharge of its functions under the Electricity Act,2003. Section 121 of the Electricity Act, 2003 confers the general power of superintendence & control on the Chairperson of the Appellate Tribunal over the Appropriate Commission. As the Board is an independent statutory body, this restriction is not required.

44. The Central Government shall- (i) constitute a committee consisting of such persons as it thinks fit to recommend to that Government the budgetary requirements of the Board for salaries, allowances and all other expenses; and (ii) fix the budgetary ceiling of the Board on the basis of the recommendations of the committee. To be deleted. The Board envisages being self financing through levy of fees, other charges. Therefore, this provision is not required.

45. ----- Act to have overriding effect The provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force. On the lines of the Right to Information Act 2005.

46. ----- Gas Advisory Committee. (1)  For the purpose of promoting, developing and coordinating the gas pipeline network, the city or local gas distribution networks in the country and the development of gas markets in the country, the Central Government shall by notification in the official Gazette constitute a Gas Advisory Committee (GAC) for advising the Board on major questions of policy, matters relating to quality of service, compliance with licensing conditions by the licensee, protection of consumer interest and supply of gas and overall standards of performance by utilities. (2) The composition of the ‘GAC’ shall be such as may be specified by regulations On the lines of the Electricity Act, 2003

47. ----- National and Regional Grid Management Centre: (1) The Board may establish a centre under its supervision at the national level, to be known as the “National Centre for Natural Gas Grid Management” (NCNGM) for optimum scheduling and dispatch of natural gas through the pipeline grid. (2) The composition and functions of the NCNGM shall be such as may be specified by regulations (3) The Board may also establish a centre for each region to be known as the Regional Centre for Natural Gas Grid Management having territorial jurisdiction as determined by the Board for the purposes of exercising and discharging the powers and the functions under this section. There is no provision for Grid Management in the PNGRB Act, 2006. It is felt that there is an urgent need to have such centres since we are aiming at rapid expansion of the natural gas sector in the country supported by National and regional networks.

48. Development of markets The Board shall endeavour to promote the development of a spot and futures market (including trading) for petroleum, petroleum products and natural gas, capacity of common or contract carrier pipelines for transportation of gas, in such manner as may be specified by regulations. Unlike section 66 of the Electricity Act, 2003, there is nor provision for development of markets. This is a serious lacunae as without a market, there is no transparent mechanism for price discovery, stabilization of prices and efficient allocation of a scarce natural resource. In view of this, it is essential that there should be a specific provision in the PNGRB Act, 2006 entrusting the Board with the responsibility to promote and develop spot and future markets not only for natural gas but also for other petroleum products. This would facilitate, the Indian markets to become a price giver to the global market as a major consumer of these products rather than continue to be a price taker from other established markets. -----

49. 60 (2) (e) the eligibility conditions which an entity shall fulfil for registration under sub-section (1) of section 15; To be deleted. Being removed from rules and appropriately inserted under regulations.