## Policy Analysis Report: Amendment to Petroleum and Natural Gas Regulatory Board Regulations (2022)
**1. Executive Summary:**
This report analyzes an amendment to the Petroleum and Natural Gas Regulatory Board (PNGRB) Authorizing Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks Regulations, 2008. The amendment, enacted in 2022, focuses on ensuring that entities undertaking City or Local Natural Gas Distribution (CGD) projects possess adequate in-house technical expertise. Specifically, the amendment mandates a minimum number of technically qualified personnel with experience in hydrocarbon steel pipelines and clarifies the requirements for the Authorized Area for laying, building, operating, or expanding the proposed CGD Network.. This report provides an overview of the changes, their likely rationale, and potential impact.
**2. Introduction:**
The purpose of this report is to provide an informative analysis of the amendment to the Petroleum and Natural Gas Regulatory Board Authorizing Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks Regulations, 2008, published on February 15, 2022. This analysis is based solely on the provided policy text.
**3. Policy Overview:**
* This report analyzes an amendment to the Petroleum and Natural Gas Regulatory Board Authorizing Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks Regulations, 2008.
* **Core Objective(s):** Based on the text, the primary objective of the amendment is to ensure that entities authorized to lay, build, operate, or expand City or Local Natural Gas Distribution (CGD) networks possess sufficient in-house technical capabilities and to clarify the requirements for the authorized area.
**4. Background and Rationale:**
The amendment likely aims to address potential deficiencies in the original regulations regarding the technical capacity of entities undertaking CGD projects. The inclusion of specific requirements for technically qualified personnel suggests a concern that some entities may have been overly reliant on external consultants or lacked sufficient internal expertise for the safe and efficient execution of these projects. The changes to the definition of "Authorized Area" likely aims to reduce ambiguity and ensure clarity.
**5. Key Provisions / Changes:**
This amendment introduces two key changes to the 2008 Regulations:
* **Change 1: Technical Personnel Requirements:**
* **Original Policy (Implied):** The original regulations (2008) may not have explicitly mandated a minimum level of in-house technical expertise in hydrocarbon steel pipelines for entities undertaking CGD projects or at least not to the extent specified in this amendment.
* **New Rule/Provision:** A new clause (v) is inserted into regulation 5(6)(b) stating that an entity must have an "adequate number of technically qualified personnel with experience in construction, pre commissioning and commissioning of hydrocarbon steel pipelines and also has a credible plan to independently undertake and execute the CGD project on a standalone basis." The amendment further clarifies that "adequate" means at least three technically qualified personnel on permanent rolls, each with a minimum of three years of experience in specific areas: right of way acquisition, design and execution, pre-commissioning and restoration, and safety of hydrocarbon steel pipelines and installations.
* **Effect of Change:** This change mandates that entities possess demonstrable in-house technical capacity. This aims to reduce reliance on external expertise and ensure that the CGD project can be executed independently and safely.
* **Change 2: Authorized Area Definition:**
* **Original Policy (Implied):** The original regulations defined the "Authorized Area" with potentially ambiguous wording.
* **New Rule/Provision:** Point No.1 in Schedule D has been substituted with the following: "The Authorized Area for laying, building, operating or expanding the proposed CGD Network shall cover the following Charge Areas, as depicted in indicative and not to scale drawing or map; S.no. District Name Charge Area 1 2 3".
* **Effect of Change:** This change is likely to provide more clarity and precision regarding the geographical scope of the authorized entity's activities. The new wording emphasizes that the authorized area is defined by specific Charge Areas within Districts, as shown on a drawing or map.
**6. Target Audience and Stakeholders:**
The primary target audience and stakeholders for this amendment are:
* Entities seeking authorization to lay, build, operate, or expand City or Local Natural Gas Distribution networks.
* The Petroleum and Natural Gas Regulatory Board (PNGRB) itself, as it will be responsible for enforcing these amended regulations.
**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/Procedures:** The amendment came into force on the date of its publication in the official Gazette (February 15, 2022). The text does not specify a transition period or specific procedures for entities to demonstrate compliance with the new technical personnel requirements; however, it is expected that PNGRB will develop such procedures as part of its authorization process. The authorised area will need to be specified with charge area information.
**8. Expected Outcomes / Impact of Changes:**
The expected outcomes and impact of these changes are:
* **Increased Technical Competence:** A higher level of technical competence among entities undertaking CGD projects, potentially leading to safer and more efficient project execution.
* **Reduced Dependence on External Consultants:** A decreased reliance on external consultants, fostering greater self-sufficiency and accountability among authorized entities.
* **Improved Clarity in Authorized Area Definition:** Reduced ambiguity regarding the authorized area, leading to fewer disputes and a more streamlined authorization process.
* **Safer Operation:** Enhanced safety in the construction, operation, and maintenance of City Gas Distribution networks.
**9. Conclusion:**
The 2022 amendment to the Petroleum and Natural Gas Regulatory Board Authorizing Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks Regulations, 2008, is a significant step towards ensuring the technical competence and operational clarity of entities in the CGD sector. By mandating specific in-house technical expertise and clarifying the definition of the authorized area, the amendment aims to enhance safety, efficiency, and accountability in the development of City Gas Distribution networks. These changes will have a direct impact on entities seeking authorization and are likely to lead to a more robust and sustainable CGD infrastructure.
Key Entities Referenced
Petroleum and Natural Gas Regulatory Board: A regulatory body in India responsible for the petroleum and natural gas sector.
Petroleum and Natural Gas Regulatory Board Act, 2006: An Indian law that established the Petroleum and Natural Gas Regulatory Board and defines its powers and functions.
Petroleum and Natural Gas Regulatory Board Authorizing Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks Regulations, 2008: Regulations established by the Petroleum and Natural Gas Regulatory Board concerning the authorization of entities involved in city or local natural gas distribution networks.
Petroleum and Natural Gas Regulatory Board Authorizing Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks Amendment Regulations, 2022: Amendments to the 2008 regulations concerning natural gas distribution networks.
New Delhi: The location where the notification was issued.
VANDANA SHARMA: The Secretary who signed the notification.
CGD project: City Gas Distribution project
Mayapuri, New Delhi: Location of the Dte. of Printing at Government of India Press.
Delhi: Location of the Controller of Publications.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एxलxx.G-अID.H-1x5x0x 22022-233438
CG-DLxx-xEG-I1D5E0x2xx2 022-233438
असाधारण
EXTRAORDINARY
भाग III—खण् ड 4
PART III—Section 4
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 89] िई दिल्ली, मगं लिार, फरिरी 15, 2022/माघ 26, 1943
No. 89] NEW DELHI, TUESDAY, FEBRUARY 15, 2022/MAGHA 26, 1943
परे ोजलयम और प्राकृजतक गसै जिजियामक बोडड
अजधसचू िा
िई दिल्ली, 14 फ़रिरी, 2022
फा. स.ंपीएििीआरबी/प्राजध./1-सीिीडी(79)/2019 (पी-770) पेरोजलयम और प्राकृजतक गैस जिजियामक बोड ड
अजधजियम, 2006 (2006 का 19) की धारा 61 द्वारा प्रित्त िजियों का प्रयोग करत े हुए, पेरोजलयम और प्राकृजतक गैस
जिजियामक बोडड एतद्वारा पेरोजलयम और प्राकृजतक गैस जिजियामक बोडड (िगर अथिा स्ट्थािीय प्राकृजतक गैस जितरण
िेटिकड जबछािे, जिमाडण, प्रचालि या जिस्ट्तार करिे के जलए कंपिी को प्राजधकृत करिा ) जिजियम, 2008 म ें संिोधि करि े
के जलए जिम्नजलजखत जियम बिाता ह,ै अथाडत:् -
1. लघ ुिीर्कड और प्रारंभण
(1) इि जिजियमों को पेरोजलयम और प्राकृजतक गैस जिजियामक बोडड (िगर अथिा स्ट्थािीय प्राकृजतक गैस जितरण
िेटिकड जबछािे, जिमाडण, प्रचालि या जिस्ट्तार करिे के जलए कंपिी को प्राजधकृत करिा ) संिोधि जिजियम, 2022 कहा
िाएगा ।
(2) य े सरकारी रािपत्र म ें उिके प्रकािि की तारीख स ेप्रिृत् त होंगे।
2. पेरोजलयम और प्राकृजतक गसै जिजियामक बोडड (िगर अथिा स्ट्थािीय प्राकृजतक गैस जितरण िेटिकड जबछाि,े
जिमाडण, प्रचालि या जिस्ट्तार करिे के जलए कंपिी कोप्राजधकृत करिा ) जिजियम, 2008 म,ें
(क) जिजियम 5 म,ें उप-जिजियम 6 (ख) के जलए, खंड (iv) के पश् चात., जिम्नजलजखत खंड को सजममजलत दकया िाएगा,
अथाडत ् :-
1024 GI/2022 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
" (v) कंपिी के पास हाइड्रोकाबडि स्ट्टील पाइपलाइिों का जिमाडण करि,े प्रारंभण-पूिड और प्रारंभण काय ड करिे जलए
तकिीकी रूप स े योग् य पयाडप् त कार्मडक हों और एकल आधार पर सीिीडी पररयोििा को स्ट्ितंत्र रूप स े प्रारम भ करि े और
जिष्पादित करि े के जलए एक जिश् िसिीय योििा भी हो ।
स्ट्पष्टीकरण- कंपिी के पास जिम्नजलजखत क्षेत्रों म ेंकम स े कम तीि िर्ड का अिुभि रखि े िाले स्ट्थायी िामािली म ें कम स े कम
तीि तकिीकी रूप स ेयोग्य कमचड ारी हों, अथाडत:् -
(i) अजधग्रहण अथिा स्ट् िीकृजत प्राप् त करि े का अजधकार;
(ii) हाइड्रोकाबडि स्ट्टील पाइपलाइि पररयोििा का जडिाइि और जिष्पािि;
(iii) हाइड्रो-परीक्षण सजहत प्रारंभण-पूिड काय ड और पिु : प्राजि; तथा
(iv) हाइड्रोकाबडि स्ट्टील पाइपलाइि और स्ट्थ ापिां की सुरक्षा ।
‘’ (ख) अिुसूची-घ म,ें प् िाइंट सं0 1 के जलए, ‘’प्रस्ट् ताजित सीिीडी िेटिकड जबछाि,ेजिमाडण और उसका जिस्ट् तार करि े स े
आरम भ होि े िाले िब् िों............” और िक् ि े म ें दिखाया गया ह ै’’, स े समाप् त होिे िाले िब्ि ों को जिम्नजलजखत स े
प्रजतस्ट्थाजपत दकया िाएगा:-
‘’1. प्रस्ट्ताजित सीिीडी िेटिकड जबछाि,े जिमाडण, प्रचालि अथिा उसका जिस्ट्तार करि े के जलए प्राजधकृत क्षत्रे के अन् तगडत
जिम्नजलजखत चाि ड क्षत्रे होंग,े िैसा दक संकेतक म ें दिखाया गया ह ै और ड्राइंग अथिा मािजचत्र स्ट्केल पर िहीं ;
क्रमांक जिले का िाम चािड क्षेत्र
1.
2.
3.
”
िन् ििा िमा,ड सजचि
[जिज्ञापि-III/4/असा./ 643/2021-22]
पाि रटप्प णी : मलू जियमों को अजधसूजचत िी.एस.आर. 196 (अ.) दििांक 19 माच,ड 2008 द्वारा दकया गया था। और
तत्प श् चात् िी.एस.आर. 800 (अ.)) के माध् यम स े संिोजधत, दििांक 19 ििंबर, 2008, िी.एस.आर. 295 (अ.) दििांक 30
अप्रैल, 2009, िी.एस.आर. 478(अ.) दििांक 7 िूि, 2010, िी.एस.आर. 605 (अ.)) दििांक 19 िुलाई, 2010, फा.स.ं
पीएििीआरबी/सीिीडी/जिजियम/समीक्षा-2011/2012-III, दििांक 21 िूि, 2013, फा. स.ं पी ए ििी आरबी/
सीिीडी/जबड/4/2013- बोली -पूिड दििांक 7 अप्रलै , 2014, फा.स.ं एल-एमआईएससी/VI/आई/2007, दििांक 1 िििरी
,2015, फा.स.ं पीएििीआरबी/ सीिीडी/ जिजियम/ संिोधि/2015, दििांक 13 फरिरी 2015, पीएििीआरबी/ सीिीडी/
संिोधि/ 2015/ 2, दििांक 11 दिसंबर 2015, फा.स.ं पीएििीआरबी/सीिीडी/ संिोधि/ 2015/2/ एससी, दििांक 26
अप्रैल 2016, फा.स ं पीएििीआरबी/एयूटीएच/सीिीडी/एएमडी/2018 , दििांक 6 अप्रलै 2018, फा.स ं पीएििीआरबी/
प्राजध./ सीिीडी/एएमडी/2018/2 दििांक 27 अप्रलै 2018, फा.स ं पीएििीआरबी/ प्राजध./ सीिीडी/एएमडी/2018/3
दििांक 6 ििंबर 2018, फा.स ं पीएििीआरबी/ प्राजध./सीिीडी/एएमडी//2018 /4 दििांक 21 ििंबर 2018,फा. स.ं फा. सं
पीएििीआरबी/ प्राजध./सीिीडी/ (07)/2020 (पी-884) दििांक 30 जसतंबर 2020 और पीएििीआरबी/ प्राजध./सीिीडी/
(79)/2019 (पी-770) दििांक 07 जसतंबर 2021 द्वारा संिोजधत दकया गया था ।[भाग III—खण् ड 4] भारत का रािपत्र : असाधारण 3
PETROLEUM AND NATURAL GAS REGULATORY BOARD
NOTIFICATION
New Delhi,14th February, 2022
F. No. PNGRB/Auth/1-CGD (79)/2019 (P-770).—In exercise of the powers conferred by Section 61 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
(Authorizing Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks)
Regulations, 2008, namely: -
1. Short title and commencement.
(1) These regulations may be called the Petroleum and Natural Gas Regulatory Board (Authorizing Entities
to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks) Amendment Regulations, 2022.
(2) They shall come into force on the date of their publication in the official Gazette.
2. In the Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build, Operate or Expand
City or Local Natural Gas Distribution Networks) Regulations, 2008, -
(a) In regulation 5, for the sub-regulation 6 (b), after clause (iv), the following clause shall be inserted,
namely: -
“(v) entity has an adequate number of technically qualified personnel with experience in construction, pre-
commissioning and commissioning of hydrocarbon steel pipelines and also has a credible plan to independently
undertake and execute the CGD project on a standalone basis.
Explanation- The entity shall have at least three technically qualified personnel on its permanent rolls having
experience of not less than three years in the following areas, namely: -
(i) right of way acquisition or clearance securing;
(ii) design and execution of a hydrocarbon steel pipeline project;
(iii)pre-commissioning including hydro-testing and restoration; and
(iv)safety of hydrocarbon steel pipeline and installations.”
(b) In Schedule-D, for the Point No.1, the words beginning with “The Authorized Area for laying,
building…” and the ending with the words, “…drawing or map”, shall be substituted by the following,
namely: --
“1. The Authorized Area for laying, building, operating or expanding the proposed CGD Network shall
cover the following Charge Areas, as depicted in indicative and not to scale drawing or map;
S.no. District Name Charge Area
1
2.
3.
VANDANA SHARMA, Secy.
[ADVT. III/4/Exty./643/2021-22]
Foot Note: Principal regulations were notified vide no. G.S.R. 196 (E) dated 19th March, 2008 and subsequently amended
vide G.S.R. 800 (E) dated 19th November, 2008, G.S.R. 295 (E) dated 30th April, 2009, G.S.R. 478(E) dated
7th June, 2010, G.S.R. 605 (E) dated 19th July, 2010, F. No. PNGRB/ CGD/ REGULATIONS/REVIEW-
2011/2012-III dated 21st June, 2013, F. No. PNGRB/CGD/BID/4/2013-PRE BID dated 7th April, 2014,
F. No. L-MISC/VI/ I/2007 dated 1st January, 2015, F. No. PNGRB/ CGD/ Regulations/Amend/2015 dated
13th February 2015, PNGRB/CGD/Amendment/2015/2 dated 11th December 2015,
F. No. PNGRB/CGD/Amendment/ 2015/2/SC dated 26th April 2016, F. No. PNGRB/AUTH/ CGD/Amd/2018
dated 6th April 2018, F.No. PNGRB/Auth./CGD/Amd/2018/2 dated 27th April 2018,
F. No. PNGRB/Auth./CGD/Amd/2018/3 dated 6th November 2018, F. No. PNGRB/Auth./CGD/Amd/2018/4
dated 21st November 2018, F. No. PNGRB/Auth/1-CGD(07)/2020 (P-884) dated 30th September 2020 and
PNGRB/Auth/1-CGD (79)/2019 (P-770) dated 07th September 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.