Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:-


(a) the present status of the proposed Petroleum and Natural Gas Regulatory Board ;

(b) whether some State Governments have proposed to the Union Government to introduce two tier regulatory system so that the intra-state and local distribution gas pipelines could be dealt with at the State level ; and

(c) if so, the reaction of the Union Government thereto ?

                                                           ANSWER

MINISTER OF STATE IN THE MINISTRY OF PETROLEUM & NATURAL GAS ( SHRI DINSHA PATEL )

(a) : Government is proposing to set up a Petroleum & Natural Gas Regulatory Board (PNGRB) under a Statute to regulate the refining, processing, storage, transportation, distribution, marketing and sale of petroleum, petroleum products and natural gas excluding production of crude oil and natural gas, to protect the interests of consumers and entities engaged in specified activities relating to petroleum, petroleum products and natural gas and to ensure uninterrupted and adequate supply of petroleum, petroleum products and natural gas in all parts of the country and to promote competitive markets, and for matters connected therewith or incidental thereto. The PNGRB Bill, 2005 has been introduced in Rajya Sabha on 21.12.2005.

(b) : Yes, Sir.

(c) : Natural gas is a Union subject and the Government of India has the exclusive jurisdiction to legislate on issues relating to this subject. The proposed Bill contains provisions dealing with gas transmission pipelines and city gas distribution networks. There is no proposal under the consideration of the Government to have a two-tier regulatory system.