The ministry recently issued an order saying ‘no authorisation from Petroleum and Natural Gas Regulatory Board is required for setting up of a CNG station.
PNGRB has been since 2009 issuing licences to entities for city gas distribution networks, essentially for retailing compressed natural gas to automobiles and piped cooking gas (piped natural gas or PNG) to households.
The Oil Ministry has, however, held that while PNGRB can issue authorisation for CGD, companies are free to set up a CNG stations without its prior approval.
"CNG station is not covered in the definition of 'city or local natural gas distribution network' provided in the PNGRB Act, 2006. No authorisation from PNGRB is required for setting up of a CNG station," it said in a letter to GAIL India Ltd chairman and managing director.
Officials said this essentially means that PNGRB can issue authorisation or licence for CGD which entails
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