According to reports, downstream regulator Petroleum & Natural Gas Regulatory Board (PNGRB) has filed a Special Leave Petition challenging the Delhi High Court order of June 1 over the regulator’s row with Indraprastha Gas Ltd (IGL).
IGL has received a copy of the petition, it said in a statement to the Bombay Stock Exchange. IGL scrip on the BSE is trading three points higher at Rs 236.05 a share.
On June 1, the Delhi High Court had quashed the PNGRB order asking IGL to cut tariffs.
The High Court Bench comprising Acting Chief Justice Mr A.K. Sikri and Mr Justice Rajiv Sahai Endlaw termed the regulator’s order as “Illegal” and it is not “empowered” to fix or regulate the maximum retail price at which the gas is to be sold by retailers.
IGL had challenged a PNGRB order on network tariff and compression charge issued on April 9. The company has decided not to change its tariff structure until the court gives its verdict. Similarly, PNGRB will not take any coercive action against IGL.
According to the PNGRB order, IGL can charge Rs 38.58 for every million British thermal unit (a measurement of heat value of fuels) for transmission of gas against Rs 104.05 that it charges now.
Also, CNG compression tariff was pegged at Rs 2.75 per kg. IGL charges Rs 6.66. These rates are to be retrospectively applicable from April 1, 2008.