Date: 2022-08-02Category: Extra OrdinaryState: Union GovernmentCountry: India
In exercise of the powers conferred by clause g of sub section 2 of section 61 read with clause g of section 11 of the Petroleum and Natural Gas Regulatory Board Act
## Report on Petroleum and Natural Gas Regulatory Board (PNGRB) Levy of Fee and Other Charges Amendment Regulations, 2022
**1. Executive Summary:**
This report analyzes the Petroleum and Natural Gas Regulatory Board (PNGRB) Levy of Fee and Other Charges Amendment Regulations, 2022, as published in the Gazette of India on August 2, 2022. This amendment modifies the 2007 regulations concerning fees and charges levied by the PNGRB. Key changes include the introduction of fees for the renunciation or transfer of authorization related to gas pipelines and city gas distribution networks, and revisions to annual charges for gas exchanges and clearing corporations. The amendment aims to update the fee structure to reflect the evolving activities and regulatory oversight within the petroleum and natural gas sector.
**2. Introduction:**
This report provides an overview and analysis of the PNGRB Levy of Fee and Other Charges Amendment Regulations, 2022, based solely on the provided official text. The report outlines the amendments, their likely rationale, and potential impact on affected stakeholders.
**3. Policy Overview:**
This document amends the Petroleum and Natural Gas Regulatory Board Levy of Fee and Other Charges Regulations, 2007. The core objective, inferred from the text, is to revise and expand the schedule of fees and charges associated with various regulatory processes under the purview of the PNGRB, particularly concerning authorization transfers and gas exchange operations.
**4. Background and Rationale:**
The amendment appears to be driven by the need to establish fees for new types of transactions and activities within the petroleum and natural gas sector. Specifically, the introduction of fees related to the renunciation or transfer of authorization suggests an increasing frequency of such transactions, necessitating a structured fee schedule. The adjustments to gas exchange fees likely reflect the growing importance and oversight of these entities. This update to the fee structure probably aims to ensure the PNGRB can adequately fund its regulatory activities in a rapidly changing environment.
**5. Key Provisions / Changes:**
This amendment introduces the following key changes to the Petroleum and Natural Gas Regulatory Board Levy of Fee and Other Charges Regulations, 2007:
* **Amendment to Regulation 3:**
* **Specific Change:** Inserts "Tie-in connectivity pipeline" after "spur line" under the "Pipeline Proposal" head in S. No. 3. This broadens the definition of pipeline proposals.
* **Specific Change:** Introduces new S. No. 12 and 13, adding fees for authorization renunciation and transfer:
* **S. No. 12 (Fees: Rs. 20,00,000):** Covers applications for renunciation of authorization in favor of another entity; transfer of authorization involving transfer of majority equity shareholding stake (at least 51%); or transfer of authorization by/to wholly owned subsidiary/parent companies.
* **S. No. 13 (Fees: Rs. 10,00,000):** Covers applications for transfer of less than 51% equity shareholding stake.
* **Difference/Effect:** Establishes a clear fee structure for the renunciation and transfer of authorizations, activities that were previously not explicitly addressed in the fee schedule. The difference in fee between S.No 12 and 13 depends on the amount of equity being transferred.
* **Amendment to Regulation 4, subregulation 2A:**
* **Specific Change:** Modifies the annual other charges payable by gas exchanges and clearing corporations.
* **New Rule:** Sets the annual charge at the *higher* of Rs. 25,00,000 or 1% of the entity's total revenue (excluding taxes) as per audited financial statements.
* **Difference/Effect:** This change likely results in higher annual charges for larger gas exchanges and clearing corporations, as their revenue grows. The inclusion of a "Note" allows for initial payment estimates based on previous year's revenue, with adjustments made in the following year, allowing for easier processing.
**6. Target Audience and Stakeholders:**
The directly affected stakeholders are:
* Entities involved in laying, building, operating, or expanding city or local natural gas distribution networks.
* Entities involved in laying, building, operating, or expanding natural gas pipelines and petroleum and petroleum products pipelines.
* Gas exchanges (with and without clearing corporations).
* Clearing corporations operating within the gas exchange framework.
* Parent companies and wholly owned subsidiaries dealing with authorization transfers.
**7. Implementation Aspects (Inferred):**
* **Responsible Agency:** The Petroleum and Natural Gas Regulatory Board (PNGRB) is the responsible body for implementing and enforcing these regulations.
* **Timelines:** The regulations came into force on August 2, 2022 (date of publication in the Official Gazette).
* **Procedures:** Applications for authorization transfers (S. No. 12 & 13) must be submitted as per the provisions of the relevant PNGRB regulations concerning gas distribution networks, natural gas pipelines, and petroleum product pipelines (2008, 2010). The method of payment of annual charges is defined by the note in amended regulation 4.
**8. Expected Outcomes / Impact of Changes:**
The intended outcomes of these amendments are likely:
* **Increased Revenue for PNGRB:** The new fees for authorization transfers and revised charges for gas exchanges will likely generate additional revenue for the PNGRB, supporting its regulatory functions.
* **Greater Regulatory Clarity:** The explicit fee schedule for authorization transfers provides clarity and predictability for companies engaging in these transactions.
* **Fairer Distribution of Regulatory Costs:** The revenue-based charges for gas exchanges may lead to a fairer distribution of regulatory costs, based on the size and activity of the exchange.
**9. Conclusion:**
The PNGRB Levy of Fee and Other Charges Amendment Regulations, 2022, represents a significant update to the fee structure governing the petroleum and natural gas sector in India. By introducing fees for authorization transfers and revising charges for gas exchanges, the amendment aims to ensure adequate funding for the PNGRB's regulatory activities and provide clarity for stakeholders involved in these transactions. This amendment reflects the evolving landscape of the petroleum and natural gas industry and the need for a responsive regulatory framework.
Key Entities Referenced
Petroleum and Natural Gas Regulatory Board: A regulatory body in India responsible for the regulation of the petroleum and natural gas sector.
Petroleum and Natural Gas Regulatory Board Act, 2006: The Act of the Indian Parliament that established the Petroleum and Natural Gas Regulatory Board.
Petroleum and Natural Gas Regulatory Board Levy of Fee and Other Charges Regulations, 2007: Regulations pertaining to the fees and charges levied by the Petroleum and Natural Gas Regulatory Board.
Petroleum and Natural Gas Regulatory Board Levy of Fee and Other Charges Amendment Regulations, 2022: Amendment regulations to the 2007 regulations concerning fees and other charges.
Official Gazette: The official government publication in which regulations are published.
PNGRB Authorizing Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks Regulations 2008: Regulations by PNGRB related to authorizing entities for natural gas distribution networks.
PNGRB Authorizing Entities to Lay, Build, Operate or Expand Natural Gas Pipelines Regulations, 2008: Regulations by PNGRB related to authorizing entities for natural gas pipelines.
PNGRB Authorizing Entities to Lay, Build, Operate or Expand Petroleum and Petroleum Products Pipelines Regulations, 2010: Regulations by PNGRB related to authorizing entities for petroleum and petroleum product pipelines.
Petroleum and Natural Gas Regulatory Board Gas Exchange Regulations, 2020: Regulations concerning gas exchanges issued by the Petroleum and Natural Gas Regulatory Board.
Anil Kumar Garg: Jt. Adviser
New Delhi: City in India; Place of publication of notification
Mayapuri, New Delhi: Region and City in India; Place where document uploaded
Delhi: City in India; Place where document published
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-02082022-237849
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CG-DL-E-02082022-237849
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असाधारण
EXTRAORDINARY
भाग III—खण् ड 4
PART III—Section 4
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 385] िई दिल्ली, मगं लिार, अगस्ट्त 2, 2022/श्रािण 11, 1944
No. 385] NEW DELHI, TUESDAY, AUGUST 2, 2022/SHRAVANA 11, 1944
परे ोजलयम और प्राकृजतक गसै जिजियामक बोडड
अजधसचू िा
िई दिल्ली, 2 अगस्ट्त, 2022
स.ं पीएििीआरबी/जित्त/8-ओसी(1)/2018 (पी-3264).—पेरोजलयम और प्राकृजतक गसै जिजियामक बोड ड
अजधजियम, 2006 (2006 का 19) की धारा 11 के खंड (छ) के साथ पठित धारा 61 की उप-धारा (2) के खडं (छ) द्वारा
प्रित्त िजियों का प्रयोग करत े हुए पेरोजलयम और प्राकृजतक गैस जिजियामक बोडड, अपि े पेरोजलयम और प्राकृजतक गैस
जियामक बोडड (िल्ु क एि ं अन्य प्रभार उगाही ) जिजियम, 2007 म ें आग े संिोधि करिे हते ु एतद्दारा जिम्नजलजखत जियम
बिाता ह,ै अथाडत:् -
1. सजं िप्त िीर्कड और प्रारंभ:
(1) इि जिजियमों को पेरोजलयम और प्राकृजतक गैस जिजियामक बोडड (िल्ु क और अन्य प्रभार उगाही) संिोधि
जिजियम, 2022 कहा िाएगा ।
(2) ये रािपत्र म ेंइिकी प्रकािि की तारीख स ेलाग ू होंगे।
2. पेरोजलयम और प्राकृजतक गैस जिजियामक बोडड (िुल्क एि ं अन्य प्रभार उगाही) जिजियम, 2007 के जिजियम 3 म ें िी
गई ताजलका के जलए , अथाडत:् -
i. 'पाइपलाइि प्रस्ट्ताि' िीर्डक के तहत क्रम स.ं 3 म ें "स्ट्पर लाइि" िब्ि ों के बाि '/ टाई-इि किेजटटजिटी पाइपलाइि'
िब् िों को िोडा िाएगा ।
5259 GI/2022 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
ii क्रम स.ं 11 के बाि, जिम्नजलजखत को िोडा िाएगा :-
क) अन्य संस्ट्था के पि म ेंप्राजधकार के अस्ट् िीकरण के जलए आिेिि; (या) 20,00,000 प्रजत
िीए/पाइपलाइि
12. ख) बहुसंख्यक इदिटी िेयरधाठरता/जहस्ट्सेिारी (कम स ेकम 51%) के
हस्ट्तांतरण स ेिुड े प्राजधकार के हस्ट्तांतरण के जलए आिेिि ; (या)
ग) संस्ट्थ ा द्वारा अपिी पणू ड स्ट्िाजमत्ि िाली सहायक कंपिी को प्राजधकार के
हस्ट्तांतरण के जलए आिेिि (ठटप्प ण 2 िेख)ें ; (या)
घ) पणू ड स्ट्िाजमत्ि िाली सहायक कंपिी द्वारा अपिी मलू कंपिी को
प्राजधकार का हस्ट्तांतरण (ठटप् पण 2 िेख)ें
13. 51% स े कम इदिटी िेयरधाठरता/जहस्ट्सेिारी के हस्ट्तांतरण के जलए आिेिि 10,00,000 प्रजत
िीए/पाइपलाइि
ठटप्पणी:
1. क्रम स ं 12 और 13 के जलए आिेिि पीएििीआरबी (िगर या स्ट्थािीय प्राकृजतक गसै जितरण िेटिकड को
जबछािे, बिािे, संचाजलत करिे या जिस्ट्ताठरत करिे के जलए संस्ट्थाओं को प्राजधकृत करिा) जिजियम 2008;
पीएििीआरबी (प्राकृजतक गैस पाइपलाइिों को जबछाि,े बिािे, संचाजलत करि े या जिस्ट्ताठरत करिे के जलए
संस्ट्थाओं को प्राजधकृत करिा) जिजियम, 2008; पीएििीआरबी (पेरोजलयम और पेरोजलयम उत्पाि पाइपलाइिों
को जबछािे, बिािे, संचाजलत करिे या जिस्ट्ताठरत करिे के जलए संस्ट्थाओं को प्राजधकृत करिा) जिजियम, 2010 के
प्रािधािों के अिुसार प्रस्ट्तुत दकए िाए,ं यथा-लाग ू ।
2. एक स े अजधक िीए या पाइपलाइि के मामल े म ें यदि संस्ट्थ ा द्वारा एक मलू कंपिी स े एक एकल पणू ड स्ट्िाजमत्ि
िाली सहायक कंपिी या एक एकल पणू ड स्ट्िाजमत्ि िाली सहायक कंपिी स े मूल कंपिी को एक ही आिेिि म ें
हस्ट्तांठरत करिे का प्रस्ट्ताि ह,ै तो पहल े िीए या पाइपलाइि के जलए 20,00,000 रुपय े और बाि के प्रत्येक िीए
या पाइपलाइि के जलए 5,00,000 रुपय े अजतठरि राजि ।
ii. जिजियम 4 उप-जिजियम (2क) म ें जिम्ि जलजखत को प्रजतस्ट्थाजपत दकया िाएगा, अथाडत् :-
“(2क) ताजलका म ें जिर्िष्टड जिम्नजलजखत िार्र्डक अन्य प्रभार, समािोधि कॉपोरेिि के साथ एक गैस जिजिमय,
समािोधि कॉरपोरेिि के जबिा एक गैस जिजिमय और एक समािोधि कॉपोरेिि द्वारा पेरोजलयम और प्राकृजतक
गैस जिजियामक बोड ड (गैस जिजिमय) जिजियम, 2020 के तहत बोड ड द्वारा इस े दिए गए प्राजधकार की तारीख स े
प्रत्येक जित्तीय िर्ड म ें िये होंगे। अथाडत:्
ताजलका
क्रम स.ं जििरण राजि (रु.)
1. पेरोजलयम और प्राकृजतक गैस जिजियामक बोडड (गैस जिजिमय) जिजियम, 2020 के जिजियम 13 के तहत
िार्र्डक और अन्य प्रभार:
क) समािोधि कॉरपोरेिि के साथ गैस जिजिमय के जलए; (या) (रु.) 25,00,000 या लेखापरीजित
ख) समािोधि कॉरपोरेिि के जबिा गैस जिजिमय के जलए; जित्तीय जििरणों के अिुसार संबंजधत
जित्तीय िर्ड के िौराि गैस जिजिमय के
कुल रािस्ट्ि (करों को छोडकर) का
1%, िो भी अजधक हो
ग) समािोधि कॉरपोरेिि के जलए (रु.) 25,00,000 या लेखापरीजित
जित्तीय जििरणों के अिुसार संबंजधत[भाग III—खण् ड 4] भारत का रािपत्र : असाधारण 3
क्रम स.ं जििरण राजि (रु.)
जित्तीय िर्ड के िौराि समािोधि
कॉरपोरेिि कुल रािस्ट्ि (करों को
छोडकर) का 1%, िो भी अजधक हो
ठटप्प ण : अन्य प्रभारों का भुगताि समािोधि कॉरपोरेिि के साथ या समािोधि कॉरपोरेिि के जबिा गैस जिजिमय या
समािोधि कॉरपोरेिि के संबंध म ें जपछल े जित्तीय िर्ड के िौराि अर्िडत रािस्ट्ि (करों को छोडकर) को ध्याि म ें रखते हुए
प्रारम् भ म ें दकया िाए। भुगताि की गई और िये राजि के अंतर को अगले जित्तीय िर्ड के जलए भुगताि करते समय
समायोजित दकया िाएगा।
”
अजिल कुमार गग,ड संयुट त सलाहकार
[जिज्ञापि-III/4/असा./208/2022-23]
पाि ठटप्प ण : प्रमुख जिजियम सा का.जि. 732 (अ), दििांक 26 ििंबर, 2007 और संिोजधत सा का.जि. 477 (अ),
दििांक 7 िूि, 2010 फा.स.ं जिजधक/50/2013 दििांक 21 िूि, 2013, फा.स.ं पीएििीआरबी/ जित्त
एि ं िा./संिोधि पीएििीआरबी जिजियम, दििांक 8 िििरी, 2019, फा.स.ं पीएििीआरबी/जित् त/
8-ओसी (1)/2018 दििांक 14 मई, 2020, फा.स.ं पीएििीआरबी/जित् त/8-ओसी(1)/2018 (पी-836)
दििांक 28 जसतंबर, 2020 और फा.स.ं पीएििीआरबी/जित् त/8-ओसी(2)/2018 (पी-3270) दििांक
27 अगस्ट्त, 2021द्वारा अजधसूजचत दकय ेगय ेथ े ।
PETROLEUM AND NATURAL GAS REGULATORY BOARD
NOTIFICATION
New Delhi, the 2nd August, 2022
No. PNGRB/Fin/8-OC(1)/2018 (P-3264).—In exercise of the powers conferred by clause (g) of
sub-section (2) of section 61 read with clause (g) of section 11 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, further to amend the Petroleum and Natural Gas Regulatory Board (Levy of Fee
and Other Charges) Regulations, 2007, namely:-
1. Short title and commencement:
(1) These regulations may be called the Petroleum and Natural Gas Regulatory Board (Levy of Fee
and Other Charges) Amendment Regulations, 2022.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. For the table given in regulation 3 of the Petroleum and Natural Gas Regulatory Board (Levy of Fee and
Other Charges) Regulations, 2007, namely: -
i. In S. No. 3 under the head ‘Pipeline Proposal’ the words namely ‘/Tie-in connectivity pipeline’ shall be
inserted after the words “spur line”.
ii. After S. No. 11, the following shall be inserted: -
12. a) Application for renunciation of authorization in favour of another entity; 20,00,000 per
(or) GA/pipeline
b) Application for transfer of authorization involving transfer of majority
equity shareholding/ stake (at least 51%); (or)
c) Application for transfer of authorisation by the entity to its wholly owned
subsidiary company (Refer No. 2); (or)4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
d) Transfer of authorisation by the wholly owned subsidiary company to its
parent company (Refer No. 2).
13. Application for transfer of less than 51% equity shareholding/ stake 10,00,000 per
GA/pipeline
Note:
1. Applications for S. No. 12 and 13 shall be submitted as per provisions of PNGRB (Authorizing
Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks)
Regulations 2008; PNGRB (Authorizing Entities to Lay, Build, Operate or Expand Natural Gas
Pipelines) Regulations, 2008; PNGRB (Authorizing Entities to Lay, Build, Operate or Expand
Petroleum and Petroleum Products Pipelines) Regulations, 2010, as applicable.
2. In case of more than one GA or pipeline is proposed by the entity to be transferred from a parent
company to a single wholly owned subsidiary or from a single wholly owned subsidiary to parent
company in a single application, then Rs. 20,00,000 for the first GA or pipeline plus additional
amount of Rs. 5,00,000 per each subsequent GA or Pipeline.
iii. In regulation 4 sub-regulation (2A), the following shall be substituted, namely: -
“(2A) The following annual other charges specified in the Table, shall be payable by a gas exchange
with clearing corporation, a gas exchange without clearing corporation and a clearing corporation for
every financial year with effect from the date of authorisation granted to it by the Board under
Petroleum and Natural Gas Regulatory Board (Gas Exchange) Regulations, 2020, namely:
TABLE
Sr. No. Particulars Amount (Rs.)
1. Annual and other charges under regulation 13 of the Petroleum and Natural Gas Regulatory
Board (Gas Exchange) Regulations, 2020:
a) for a Gas Exchange with Clearing Rs. 25,00,000 or 1% of total Revenue of the gas
Corporation; (or) exchange (excluding taxes) during the relevant
b) for a Gas Exchange without clearing financial year as per the audited financial
corporation; statements, whichever is higher
c) for a Clearing Corporation Rs. 25,00,000 or 1% of the total Revenue of the
clearing corporation (excluding taxes) during the
relevant financial year as per the audited financial
statements, whichever is higher
Note: Other Charges in respect of gas exchange with clearing corporation or gas exchange without clearing
corporation or clearing corporation may be initially paid considering the revenue accrued (excluding taxes)
during the previous financial year. Difference of amount paid and payable shall be adjusted at the time of
making payment for the next financial year.
”
ANIL KUMAR GARG, Jt. Adviser
[ADVT.-III/4/Exty./208/2022-23]
Foot Note : The Principal regulations were notified vide No. G.S.R. 732 (E), dated 26th November, 2007
and amended vide G.S.R. 477 (E), dated 7th June, 2010, F. No. Legal/50/2013 dated
21st June, 2013, F. No. PNGRB/F&C/Amendment PNGRB Regulations, dated 8th January,
2019, F. No. PNGRB/Fin./8-OC (1)/2018 dated 14th May, 2020, F. No. PNGRB/Fin/
8-OC(1)/2018(P-836) dated 28th September, 2020 and F.No. PNGRB/Fin/8-OC(2)/2018
(P-3270) dated 27th August, 2021.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.