IndianOil-Adani quotes zero tariff win CNG rights
New Delhi   11-Aug-2009
IndianOil and Adani Energy - combine has bagged rights to retail CNG to automobiles and piped gas to industries in Chandigarh and Allahabad by quoting a zero pipeline tariff. The Petroleum and Natural Gas Regulatory Board (PN-GRB) had asked the companies to quote only the tariff that they will charge for transporting gas within the perimeters of a city and left the final selling price of the fuel for the companies to decide. This provision of zero tariff, sources said, is made up by companies through CNG charges levied from users household or industries as they deem fit Industry sources said PNGRB today opened price bids for two cities to discover that IndianOil-Adani combine had quoted zero pipeline tariff for 25 years in Chandigarh and the same for 7 years in Allahabad. On top of this, the PNGRB has also allowed a 5-year marketing exclusivity to the winning company. Even after 5 years, the operator like IndianOil-Adani will have system (that is pipeline) exclusivity for 25 years, meaning no other company can lay a pipeline network and would have to necessarily request them to use their network if they want to retail CNG to automobiles and piped gas.