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ICICI Securities Report
In the past few weeks, Petroleum and Natural Gas Regulatory Board has issued draft regulations relating to unified tariff and allowing competition in city gas distribution areas.
PNGRB has opted for unified tariff for all interconnected pipelines of all entities whereby consumers pay the unified tariff, but each pipeline entity continues to get the same tariff as earlier.
The draft regulations on CGD appear to favour the new entrants over incumbents; new entrants paying cost plus tariff has been opted for instead of base tariff with capacity being allotted to the highest bidder.
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