**Executive Summary**
This document is a notification from the Petroleum and Natural Gas Regulatory Board (PNGRB) amending the 2010 Regulations on Authorizing Entities to Lay, Build, Operate or Expand Petroleum and Petroleum Products Pipelines. The amendments, titled the "Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build, Operate or Expand Petroleum and Petroleum Products Pipelines) amendment Regulations, 2025", come into force on the date of their publication in the Official Gazette, September 17, 2025. The amendments pertain to performance bonds and their utilization.
**Key Points / Main Content**
* **Short Title and Commencement:**
* The regulations are called "Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build, Operate or Expand Petroleum and Petroleum Products Pipelines) amendment Regulations, 2025."
* The regulations take effect on the date of publication in the Official Gazette, September 17, 2025.
* **Amendments to Performance Bond Definition:**
* The definition of "Performance Bond" now includes Demand Draft, Pay Order, or Bank Guarantee from any scheduled Bank of India, or Insurance Surety Bond from Insurance Companies licensed/notified by IRDAI for the amount specified.
* **Amendments to Regulations on Acceptance of Performance Bond:**
* Performance Bonds via Insurance Surety Bonds will be accepted up to a maximum of 50% of the amount specified in the regulation, with the balance to be accepted via instruments as defined in Regulation 2(1)(s).
* Entities can provide 100% of the performance security via Bank Guarantee/DD/Pay Order.
* **Amendments to Regulations on Encashment of Performance Bonds:**
* The words "or bank guarantee" are deleted from Regulation 17, Clause 3, Sub-Clause (b).
* In case of encashment of Performance Bonds, Bank Guarantee will be encashed first, followed by Insurance Surety Bond and other instruments, as applicable.
**Impact Analysis**
**Entities authorized to Lay, Build, Operate or Expand Petroleum and Petroleum Products Pipelines**
* **Impact**: This amendment affects how they can provide performance security, allowing for the use of Insurance Surety Bonds up to 50% of the required amount, while also giving the option to use Bank Guarantees/DD/Pay Orders for the full amount. The procedure for encashment of performance bond is also changed.
* **Action Required**: Need to understand the new options for providing performance security and adjust their practices accordingly.
**Insurance Companies licensed/notified by IRDAI**
* **Impact**: The notification allows for the use of Insurance Surety Bonds as performance bonds, potentially increasing their business in this area.
* **Action Required**: Review and possibly update their offerings to align with the requirements of this regulation.
Key Entities Referenced
Petroleum and Natural Gas Regulatory Act, 2006: The act under which the Petroleum and Natural Gas Regulatory Board (PNGRB) derives its power to make regulations.
Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build, Operate or Expand Petroleum and Petroleum Products Pipelines) Regulations, 2010: The regulations being amended regarding authorization of entities involved in petroleum and petroleum products pipelines.
Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build, Operate or Expand Petroleum and Petroleum Products Pipelines) amendment Regulations, 2025: The specific regulations being notified to amend the 2010 regulations regarding authorization of entities for petroleum pipelines.
Petroleum and Natural Gas Regulatory Board: The regulatory body responsible for making and enforcing the regulations related to the petroleum and natural gas sector.
Insurance Regulatory and Development Authority of India (IRDAI): Referenced as the authority licensing/notifying the insurance companies that provide insurance surety bonds.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-20092025-266264
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CG-DL-E-20092025-266264
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असाधारण
EXTRAORDINARY
भाग III—खण् ड 4
PART III—Section 4
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 638] िई दिल्ली, बुधवार, जसतम्ब र 17, 2025/भाद्र 26, 1947
No. 638] NEW DELHI, WEDNESDAY, SEPTEMBER 17, 2025/BHADRA 26, 1947
परे ोजलयम एव ंप्राकृजतक गसै जवजियामक बोडड
अजधसचू िा
िई दिल्ली, 15 जसतम्बर, 2025
एफ. स.ं पीएििीआरबी/वाजणजययक/7-जवजवध(5)/2025 (ई-5734)/03 – पेरोजलयम और प्राकृजतक गैस
जवजियामक अजधजियम, 2006 (2006 का 19) की धारा 61 के तहत प्रित्त िजियों का उपयोग करते
हुए, पेरोजलयम और प्राकृजतक गैस जवजियामक बोडड जिम्नजलजखत जवजियम बिाता हैं, अर्ाडत:्
1. लघ ुिीर्कड और प्रारंभ
(1) इि जवजियमों को “पेरोजलयम और प्राकृजतक गैस जवजियामक बोडड (पेरोजलयम और पेरोजलयम उत्पाि
पाइपलाइिों को जबछाि,े जिमाडण, प्रचालि या जवस्ट्तार करिे के जलए इकाइयों को प्राजधकृत करिा)
(संिोधि) जवजियम, 2025” कहा िाएगा।
(2) ये जवजियम रािपत्र म ेंउिके प्रकािि की तारीख स ेलाग ूहोंगे।
2. “पेरोजलयम और प्राकृजतक गैस जवजियामक बोडड (पेरोजलयम और पेरोजलयम उत्पाि पाइपलाइिों को जबछािे,
जिमाडण, प्रचालि या जवस्ट्तार करिे के जलए इकाइयों को प्राजधकृत करिा) जवजियम वर् ड 2010” म—ें
(क) जवजियम 2, खंड (1), उपखंड (एस) – “परफॉमेंस बॉन्ड” की पररभार्ा उपखडं (आर) के पश्चात ् िोड़ी की
िाएगी:
6192 GI/2025 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART III—SEC.4]
“परफॉमेंस बॉन्ड” में, िैसा भी मामला हो, भारत के दकसी भी अिुसूजचत बैंक से जडमांड ड्राफ्ट, भुगताि आिेि (प े
ऑडरड ) या बैंक गारंटी अर्वा भारतीय बीमा जवजियामक और जवकास प्राजधकरण (आईआरडीएआई) द्वारा
लाइसेंस/सूजचत बीमा कंपजियों से बीमा ज़माित बाडं (बीमा श्योररटी बॉन्ड) िाजमल होगा, जिसकी राजि
जवजियम में जिर्िडष्ट ह।ै
(ख) जवजियम 8, खडं (1) – म ें“स्ट्पष्टीकरण” िब्ि के पश्चात ्जिम्नजलजखत िब्ि िोड़े िाएंग:े
“बीमा ज़माित बांड के माध्यम स े परफॉमेंस बॉन्ड जवजियम म ें जिर्िष्टड राजि के अजधकतम 50% तक स्ट्वीकार
दकए िाएंगे और िेर् 50% अन्य साधिों के माध्यम से, िैसा दक जवजियम 2(1)(एस) की पररभार्ा म ें
उजल्लजखत ह,ै स्ट्वीकार दकए िाएंगे। हालांदक, इकाई को जवजियम में जिर्िष्टड मूल्य के 100% तक बैंक
गारंटी/डीडी/भगु ताि आििे (प ेऑडडर) के रूप में परफॉमेंस सुरक्षा प्रिाि करि े की स्ट्वतंत्रता ह।ै ”
(ग) जवजियम 17, खडं 3, उपखडं (ख) म,ें िब्ि "या बैंक गारंटी" हटा दिया िाएगा।
(घ) जवजियम 17, खंड (3), उपखंड (ख) के बाि जिम्नजलजखत परंतुक िोड़ा िाएगा:
“बिते दक परफॉमेंस बॉन्ड को भुिािे के मामले में, पहले बैंक गारंटी गारंटी भुिाई िाएगी, उसके पश्चात् बीमा
ज़माित बांड (बीमा श्योररटी बॉन्ड) और अन्य साधिों, िैसा लाग ूहो, भुिाया िाएगा।”
अंिि कुमार जमश्रा, सजचव
[जवज्ञापि-III/4/असा./371/2025-26]
PETROLEUM AND NATURAL GAS REGULATORY BOARD
NOTIFICATION
New Delhi, the 15th September 2025
F. No. PNGRB/Comm/7Misc (5)/2025 (E-5734)/03.—In exercise of the powers conferred by section 61 of
the Petroleum and Natural Gas Regulatory Act, 2006 (19 of 2006), the Petroleum and Natural Gas Regulatory Board
hereby makes the following regulations, 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 Petroleum and Petroleum Products Pipelines) amendment Regulations,
2025.
(2) These 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
Petroleum and Petroleum Products Pipelines) Regulations, 2010., -
(a) In regulation 2, clause (1), sub clause (s), defining, “Performance Bond” shall be inserted, after sub
clause(r): -“The Performance Bond, as the case may be, shall include Demand Draft or Pay Order or Bank
Guarantee from any scheduled Bank of India or Insurance Surety Bond from Insurance Companies,
licensed / notified by Insurance Regulatory and Development Authority of India (IRDAI) for the amount
as specified in the regulation”.
(b) In regulation 8, clause (1) after the word “Explanation”, the following words shall be inserted: -
“The performance Bond by way of Insurance Surety Bonds will be accepted to the extent of maximum
upto 50% of the amount as specified in the regulation and balance 50% will be accepted by way of any of
other instruments as mentioned in the definition of Performance Bond at Regulation 2(1)(s)”. However,
Entity is free to provide the performance security by way of Bank Guarantee/DD/Pay Order to the extent of
100% of the value as stipulated in the respective regulation.[भाग III—खण् ड 4] भारत का रािपत्र : असाधारण 3
(c) In regulation 17, clause 3, sub clause (b), the word “or bank guarantee” shall be deleted.
(d) In regulation 17, clause (3), after sub clause (b) the following proviso shall be inserted: -
“Provided that in case of encashment of performance Bond, firstly Bank Guarantee will be encashed
followed by Insurance Surety Bond and other instruments, as the case may be.”
ANJAN KUMAR MISHRA, Secretary
[Adv-III/4/Exty./371/25-26]
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.