Ex Sebi chief to head panel on ending monopolies in gas transmission

Oil regulator has formed a committee under former Sebi chairman Ajay Tyagi to recommend ways of ending monopolies enjoyed by companies engaged in both transportation and marketing of natural gas and city gas retailing.

The eight-member committee has been asked to give its recommendations on splitting entities engaged in both transportation and marketing of natural gas, and ending the monopolies of city gas retailers where required, the Petroleum and Natural Gas Regulatory Board (PNGRB) said in an order.

The panel has been asked to submit its report in three months.

In mature markets, energy infrastructure is operated on a common carrier principle that gives access to third parties. Any user or supplier could access any gas pipeline, irrespective of who owns it. But that is not the case in India with users and suppliers often complaining of not getting access.

The government had a few years back considered splitting state-owned gas utility GAIL (India) Ltd by hiving off its pipeline