In exercise of the powers conferred by section 61 of the Petroleum and Natural Gas Regulatory Board Act

REGD. No. D. L.-33004/99 The Gazette of India CG-DL-E-02052025-262829 EXTRAORDINARY PART III-Section 4 PUBLISHED BY AUTHORITY No. 335] NEW DELHI, WEDNESDAY, APRIL 30, 2025/VAISAKHA 10, 1947 PETROLEUM AND NATURAL GAS REGULATORY BOARD NOTIFICATION New Delhi, the 25th April, 2025 F. No. PNGRB/Auth/1-CGD(10)/2024.–In exercise of the powers conferred by section 61 of the Petroleum and Natural Gas Regulatory Board Act, 2006 (19 of 2006), the Petroleum and Natural Gas Regulatory Board hereby makes the following regulations to amend the Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks) Regulations, 2008, namely: - 2. Short title and commencement, - (3) These regulations may be called the Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks) Amendment Regulations, 2025. (4) They shall come into force on the date of their publication in the Official Gazette. 3. In the Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks) Regulations, 2008, - (a) in Regulation 2, in sub-regulation (1), in clause (ie), the words “Inch-kilometer of steel pipeline", shall be substituted with the words “inch-kilometer of steel pipeline and MDPE pipeline". (b) in Regulation 7, - (i) in sub-regulation 1, in clause 1(a), i. in table above the proviso, at Sl. No. 5, under the head "Bidding Criteria", the words given "inchkilometer of steel pipeline", shall be substituted with the words, "inchkilometer of steel pipeline and MDPE pipeline". (ii) in sub-regulation 1, in clause 1(b), – i. in table above the proviso, the head “Inch-km of steel pipeline”, shall be substituted with the words, "inch kilometer of steel pipeline and MDPE pipeline". ii. at the end, the following clarification shall be inserted, namely: - "Clarification 1: In case of the GAs where only steel pipeline is given as a part of work programme of Inch-km target, the consideration of MDPE pipeline in inch-km for the purpose of work programme targets is subject to the actual cost commitment of the inch-km steel pipeline as indicated in DFR already submitted to PNGRB during FC. Example to Clarification 1: If the authorized CGD entity has envisaged a cost of say, Rs. 100 crores for laying steel-inch km pipelines for 8 contract years, and year on year basis this cumulative cost is divided say as Rs. 5, 20, 40, 60, 70, 80, 90 and 100 crores, then MDPE pipeline will be counted in work programme for inch-km target only when the actual cost committed towards inch-km pipeline is achieved cumulative for steel and MDPE pipeline on year on year basis. In case, cost breakup of the inch-km steel pipeline is not indicated in DFR, as given above, the same shall be submitted by entities without changing any numbers given in DFR, within one month of notification of these Regulations, failing which authorized entity will not be given benefit of claiming MDPE pipeline in work programme of inch-km target. In order to claim the aforesaid, a CA certificate clearly certifying the DFR Vs actual cost commitment on year-on-year basis must be submitted by the authorized entity. Clarification 2: It may be noted that for the purpose of consideration of MDPE pipeline in the work programme target, the cost indicated towards laying inch-km MDPE pipeline as per DFR originally proposed shall be excluded while considering MDPE pipeline in inch-km for this purpose." (iii) In regulation sub-regulation (3), in proviso, the words “inch-kilometer steel pipeline", shall be substituted with the words "inch-kilometer of steel pipeline and MDPE pipeline". (c) In regulation 10, - (i) in sub-regulation (1), the second proviso, shall be substituted as under: "Provided further that in case of non-acceptance of the grant of authorization and non- submission of performance bond within the stipulated time, the grant of authorisation in favour of the successful entity shall stand revoked and the bid bond shall be forfeited or encashed and such bidder entity shall be considered at default and shall be barred for a minimum period of three years from bidding. Further, the process of issuance of LOI and grant of authorisation to the bidder entity with second highest composite score shall be carried out in the same manner as specified in sub-regulation (3) of regulation 7.” (11) in sub-regulation (3), after the word "assigned", the words "or renunciated" shall be inserted. (iii) in sub-regulation (3), in first proviso, the words "hold not less than the percentage stake lower than any other partner” shall be substituted with “continue to hold the highest/joint highest shareholding in the entity". (iv) in sub-regulation (3), fourth proviso shall be inserted as under: "Provided further that any transfer or assignment or renunciation made by an authorised entity under these Regulations is going to be subject to payment of fees and conditions, as may be specified by the Board in this regard." (v) sub-regulation (4), shall be substituted as under: "The entity intending to renunciate the authorization in favour of another entity after the end of the five years or till achievement of cumulative work programme to be achieved by the end of five contract years, whichever is earlier] shall submit a proposal to the Board, (including an undertaking by the entity, in whose favour the renunciation is proposed to happen, that effective from the date of renunciation, the successor entity shall be solely responsible for any and all costs, claims, losses, damages and expenses as levied against the authorised entity under these Regulations or the Act (for acts and omissions either before or after such renunciation) which may be incurred or suffered by any third party arising from laying, building, operating or expanding the CGD network at least thirty days in advance and shall provide all information as may be called for by the Board. The entity, in whose favour the renunciation is proposed to happen, may also be called for a meeting by the Board and it shall be bound to furnish any information, which it may be called upon to do by the Board." (vi) sub-regulation (5), shall be substituted as under: "The Board after satisfying itself that the proposal will not adversely affect the existing or proposed activities of laying, building, operating or expansion of the CGD network shall either accept the proposal in full or with such modifications as it may deem fit and in a case where another entity is permitted by the Board to take over the activities of laying, building, operating or expanding the CGD network, such entity shall abide by the existing or modified terms and conditions of the authorization, including compliance with the service obligations and adherence to the quality of service standards, apart from being obligated to fulfill any pre-conditions, including clearance of any outstanding dues or payment of any penalty as levied against the authorised entity under these Regulations or the Act, which may be imposed by the Board before grant of renunciation:- Provided that such renunciation in favour of the new entity shall only be effective when all the pre-conditions laid by the Board, including submission of new bank guarantee(s), are fulfilled by such entity. Provided that the Board reserves the right to reject the proposal in public interest and in such a case the Board shall provide in writing the reasons for such rejection." (d) In Regulation 11, - (i) sub-regulation (5), shall be substituted as under: "Notwithstanding anything contained in these regulations or any other regulation contained under the Act in case the entity fails to meet the above requirements under sub-regulations (3), the grant of authorization of the entity for laying, building, operating or expanding the CGD network shall be cancelled and the performance bond shall be encashed, with the Board reserving the right to re- award the authorization in a transparent manner. The entity, whose authorization is cancelled under the present sub-regulation, shall have no right whatsoever for seeking any compensation or remedy on account of such cancellation, against the Board. (ii) sub-regulation (5), first and second proviso, shall be substituted as under: "Provided that in case the entity is not in a position to achieve the financial closure within 270 days, as specified in sub-regulation (3), it shall, at least ten days before the expiry of the period of 270 days, approach the Board with a request for an extension of time. Such a request shall be considered by the Board and in case the Board is satisfied that the reasons for non-achievement of financial closure within 270 days are bona-fide and beyond the control of the entity, the Board shall grant an extension, not exceeding 30 days at a time, to the entity for achievement of financial closure. The Board may not grant more than two such extensions to any entity, with the request for a second extension being made by the entity at least three days prior to the expiry of the period of the first extension." (e) In Regulation 12, - (i) in sub-regulation (1), the words "Subject to the provisions of these regulations”, shall be inserted in the beginning. (ii) in sub-regulation (2), - i. After the word "exclusivity", the words "period for exemption" shall be inserted. ii. In first proviso, after the word "exclusivity", the words "period for exemption from purview of contract carrier or common carrier" shall be inserted. iii. In second proviso, after the word "exclusivity", the words "period for exemption from purview of contract carrier or common carrier" shall be inserted. iv. In third proviso, the words “Inch-kilometer of steel pipeline", shall be substituted with the words “inch-kilometer of steel pipeline and MDPE pipeline". (f) In Regulation 13, - (i) in sub-regulation (1), after the word "shall", the words "be bound to" shall be inserted. (ii) in sub-regulation (1), after the word “provide,”, the words "post grant of authorization by the Board" shall be inserted. (iii) in sub-regulation (3), in the end, the words "which the entity shall be bound to undertake within the time period stipulated by the Board, failing which the entity shall be liable for action under Section 28 of the Act, apart from any penalty which may be imposed on it under the present Regulations" shall be inserted. (g) In Regulation 16, - (i) in sub-regulation (1), after the word “regulations", the words "and in the authorization granted by the Board under these regulations" shall be inserted. (ii) in sub-regulation (2), clause (b), the words “inch-kilometer of steel pipeline", shall be substituted with the words “inch-kilometer of steel pipeline and MDPE pipeline". (iii) in sub-regulation (2), clause (c), the words “inch-kilometer of steel pipeline", shall be substituted with the words “inch-kilometer of steel pipeline and MDPE pipeline". (iv) in sub-regulation (3), clause (a), the words "allowing it a reasonable period", shall be substituted with the words "indicating the default and specifying the time period to rectify such default and". (v) in sub-regulation (3), clause (b), after the word "within", the word "such" shall be substituted with the words "the specific period". (vi) in sub-regulation (5),- i. the words “inch-kilometer of steel pipeline” shall be substituted with the words “inch kilometer of steel pipeline and MDPE pipeline". ii. after the word "authorisation" and before the word "under", the word "granted" shall be inserted. iii. the word "may" shall be substituted with the word "shall". iv. after the word "asking it", the words "as to" shall be inserted. v. the word "such" after the word "why its" shall be omitted. vi. after the word "heard", the word "may" shall be inserted. (vii) in sub-regulation (5), in illustration, after the numbers “100” and “500", the words “inch-kilometer of steel pipeline”, shall be substituted with the words “inch kilometer of steel pipeline and MDPE pipeline". (viii) in sub-regulation (5), in illustration, in table, under Parameter, the words "inch-kilometer of steel pipeline", shall be substituted with the words “inch kilometer of steel pipeline and MDPE pipeline". (h) in regulation 19, - (i) after the word "purpose", the word “or”, shall be substituted with the word "of". (ii) after the word "removing", the word "such" shall be inserted. (i) in Schedule-C, in Part II: Financial Bid, in table at Sl. No. E, the words "inch-kilometer of steel pipeline" shall be substituted with the words "inch kilometer of steel pipeline and MDPE pipeline". (j) in Schedule-C (1), in clause (D), the words "inch-kilometer of steel pipeline" shall be substituted with the words "inch kilometer of steel pipeline and MDPE pipeline". (k) in Schedule D, - (i) in clause (3), in the table at Sl. No. (3), in description of work, the words "Inch-km of steel pipeline", shall be substituted with the words “inch kilometer of steel pipeline and MDPE pipeline". (ii) in clause (3), in table before the word "alternatively", the head "Inch-km of steel pipeline", shall be substituted with the words, “inch kilometer of steel pipeline and MDPE pipeline". (iii) after clause (16), the following shall be inserted, namely,- "17. The entity shall confine its operations strictly within the boundaries of the Geographical Area authorised to it by the Board and shall under no circumstances, except to the extent permitted under the Regulations, undertake any operations outside its Geographical Area." (iv) The last para of Schedule-D shall be substituted as under: "Please confirm, within a period of thirty days, your acceptance by filling-in the acceptance of the grant of authorisation provided below and return the same in original. Please note that in case of failure to accept within the stipulated time period, the grant of authorization in your favour shall stand revoked. It may be further noted that the obligations of the authorised entity under these Regulations take effect from the date of grant of authorization by the Board and are not relatable in any manner to the date of acceptance of the authorization by the entity." (1) In Schedule-E: In clause A, - i. in E1 (Monthly), words "Billed DPNG Connections" shall be inserted at the end. ii. after E5 (Monthly), the following shall be inserted as under: "E6 (Monthly) – APM allocation, RLNG (SCM) & CBG (SCM) (GA wise) E7 (Monthly) – Capex & Opex (GA wise)." (ii) in clause E, in Format: E1, under the head “Type of PNG Connections", before the row “Domestic”, a row for "Billed DPNG Connections" shall be inserted. In clause E, after E5 format, following formats shall be inserted: +----------------------------+-------------------------------------------------+-----------------+ | Schedule E: Format: E6 (CGD) | Monthly report on APM allocation, RLNG & CBG | RLNG & CBG | | +---------------------------------+-----------------+ | | | APM Allocation | RLNG | CBG | | +------------+----------+-----------------+ | | | Domestic | CNG | Total Allocation| | | | APM | APM | | | +============================+============+==========+=================+=================+ | | | | | | +----------------------------+------------+----------+-----------------+-----------------+ +----------------------------+---------------------------------------------------------------------+ | Schedule E: Format: E7 (CGD) | Monthly report on CAPEX & OPEX | | +---------------------------------+---------------------------------+ | | | CAPEX | OPEX | | +-----------------+-----------------+-----------------+-----------------+ | | As on | For the | As on | For the | | | Previous | Current | Previous | Current | | | Month | Month | Month | Month | | +-----------------+-----------------+-----------------+-----------------+ | | Cumulative | | Cumulative | | | | (Since | | (Since | | | | Inception) | | Inception) | | +============================+=================+=================+=================+=================+ | | | | | | +----------------------------+-----------------+-----------------+-----------------+-----------------+ ANJAN KUMAR MISHRA, Secy. [ADVT.-III/4/Exty./64/2025-26] Foot Note: 1. The principal regulations, Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks) Regulations, 2008, was published in Gazette of India, Part II, Sec. 3(i) on 19th November, 2008, vide G.S.R. 196(E). 2. The Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks) Amendment Regulations, 2008, was published in Gazette of India, Part II, Sec. 3(i) on 19th March, 2008, vide G.S.R. 800(E). 3. The Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks) Amendment Regulations, 2009, was published in Gazette of India, Part II, Sec. 3(i) on 30th April, 2009, vide G.S.R. 295(E). 4. The Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks) Amendment Regulations, 2010, was published in Gazette of India, Part II, Sec. 3(i) on 7th June, 2010, vide G.S.R. 478(E). 5. The Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks) Amendment Regulations, 2010, was published in Gazette of India, Part II, Sec. 3(i) on 19th July, 2010, vide G.S.R. 605(E). 6. The Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks) Amendment Regulations, 2013, was published in Gazette of India, Part III, Sec. 4 on 21st June, 2013, vide F. No. PNGRB/CGD/REGULATIONS/REVIEW-2011/2012-III. 7. The Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks) Amendment Regulations, 2014, was published in Gazette of India, Part III, Sec. 4 on 7th April, 2014, vide F. No. PNGRB/CGD/BID/4/2013-PRE BID. 8. The Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks) Amendment Regulations, 2014, was published in Gazette of India, Part III, Sec. 4 on 1st January, 2015, vide F. No. L-MISC/VI/ I/2007. 9. The Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks) Amendment Regulations, 2015, was published in Gazette of India, Part III, Sec. 4 on 13th February, 2015, vide F. No. PNGRB/CGD/REGULATIONS/AMEND-2015. 10. The Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks) Amendment Regulations, 2015, was published in Gazette of India, Part III, Sec. 4 on 15th December, 2015, vide F. No. PNGRB/CGD/Amendment/2015/2. 11. The Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks) Amendment Regulations, 2016, was published in Gazette of India, Part III, Sec. 4 on 30th March, 2016, vide F. No. VKS/DB/03/CGD. 12. The Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks) Amendment Regulations, 2016, was published in Gazette of India, Part III, Sec. 4 on 27th April, 2016, vide F. No. PNGRB/CGD/Amendment/2015/2/SC. 13. The Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks) Amendment Regulations, 2018, was published in Gazette of India, Part III, Sec. 4 on 6th April, 2018, vide F. No. PNGRB/Auth./CGD/Amd/2018. 14. The Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks) Second Amendment Regulations, 2018, was published in Gazette of India, Part III, Sec. 4 on 27th April, 2018, vide F. No. PNGRB/Auth./CGD/Amd/2018/2. 15. The Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks) Third Amendment Regulations, 2018, was published in Gazette of India, Part III, Sec. 4 on 9th November, 2018, vide F. No. PNGRB/Auth./CGD/Amd/2018/3. 16. The Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks) Fourth Amendment Regulations, 2018, was published in Gazette of India, Part III, Sec. 4 on 26th November, 2018, vide F. No. PNGRB/Auth./CGD/Amd/2018/4. 17. The Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks) Amendment Regulations, 2020, was published in Gazette of India, Part III, Sec. 4 on 30th September, 2020, vide F. No. PNGRB/Auth/1-CGD(07)/2020 (P-884). 18. The Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks) Amendment Regulations, 2021, was published in Gazette of India, Part III, Sec. 4 on 8th September, 2021, vide F. No. PNGRB/Auth/1-CGD(79)/2019(P-770). 19. The Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks) Amendment Regulations, 2022, was published in Gazette of India, Part III, Sec. 4 on 15th February, 2022, vide F. No. PNGRB/Auth/1-CGD(79)/2019 (P-770). 20. The Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks) Amendment Regulations, 2023, was published in Gazette of India, Part III, Sec. 4 on 29th March, 2023, vide F. No. PNGRB/Auth/1-CGD(08)/2020(P-894). 21. The Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks) Amendment Regulations, 2024, was published in Gazette of India, Part III, Sec. 4 on 6th January, 2025, vide F. No. PNGRB/Auth/1-CGD(5)/2024(E-5303).