A petrol pump employee fills Compressed Natural Gas at a gas station in Mumbai, India. (Photographer: Prashanth Vishwanathan/Bloomberg News)

Adani Gas’ Plea Challenging Bidding Process For PNG, CNG Distribution In Ahmedabad Dismissed

The Gujarat High Court dismissed a plea filed by Adani Gas Ltd. challenging the bidding process for the supply of piped natural gas and compressed natural gas in three areas in Ahmedabad district.

Adani Gas had lost the 2016 contract to supply gas to Sanand, Bavla and Dholka areas of the district to state-run Gujarat Gas Ltd. Petroleum and Natural Gas Regulatory Board had conducted the bidding process.

In June 2016, Adani Gas approached the Gujarat High Court over this loss. A bench of Chief Justice R Subhash Reddy and Justice VM Pancholi on Friday dismissed Adani Gas' objection plea against the bidding process.

The PNGRB Act

Before the PNGRB Act came into force in 2006, the Gujarat government gave Adani Gas permission to supply gas in Ahmedabad district with the condition that the permission was subject to any act that came into force in the future.

As per regulation 18 of the PNGRB Act, a company needs to take PNGRB’s authorisation to carry out work in an area for which the firm does not have permission from the central government.

In 2013, as per Regulation 18 of the PNGRB Act, Adani approached PNGRB seeking permission to build gas supply infrastructure in the entire Ahmedabad district.

However, while granting permission, the PNGRB excluded Sanand, Bavla and Dholka areas.

Later the regulator invited bids for these three areas in 2016, with Gujarat Gas emerging victorious while the Adani firm lost.

Following this loss, Adani Gas approached the Gujarat High Court and challenged the bidding process as well as the PNGRB’s decision to exclude these three areas.