Previous Year Question
Consider the following statements:
Petroleum and Natural Gas Regulatory Board (PNGRB) is the first regulatory body set up by the Government of India.
One of the tasks of PNGRB is to ensure competitive markets for gas.
Appeals against the decisions of PNGRB go before the Appellate Tribunal for Electricity.
Which of the statements given above are correct?
1 and 2 only
2 and 3 only
1 and 3 only
1, 2 and 3
Correct Answer: B
Detailed Solution
Statement 1 is incorrect. PNGRB was not the first regulatory body established by the Government of India. It was constituted under the Petroleum and Natural Gas Regulatory Board Act, 2006.
Several central regulatory bodies existed before PNGRB, including:
the Securities and Exchange Board of India, which received statutory status in 1992;
the Telecom Regulatory Authority of India, established in 1997;
the Central Electricity Regulatory Commission, established in 1998; and
the Insurance Regulatory and Development Authority, given statutory form in 1999.
Therefore, describing PNGRB as India’s first regulatory body is clearly incorrect.
Statement 2 is correct. The preamble to the PNGRB Act, 2006 includes the promotion of competitive markets among the objectives of the Board.
PNGRB regulates the following downstream and midstream activities:
refining and processing of petroleum products and natural gas;
storage and transportation;
distribution, marketing and sale;
petroleum-product and natural-gas pipelines;
City Gas Distribution networks; and
access to common-carrier and contract-carrier infrastructure.
The production of crude oil and natural gas is expressly excluded from PNGRB’s regulatory jurisdiction. To promote competition, the Board regulates matters such as authorisation, tariffs and fair access to pipelines and City Gas Distribution networks.
Statement 3 is correct. Under Section 33 of the PNGRB Act, a person aggrieved by an order or decision of PNGRB may appeal to the Appellate Tribunal for Electricity (APTEL).
APTEL was originally established under Section 110 of the Electricity Act, 2003. The PNGRB Act subsequently conferred appellate jurisdiction over petroleum and natural-gas matters upon it. Therefore, despite the word “Electricity” in its name, APTEL hears appeals against PNGRB decisions.
Current position (2026)
The same statutory arrangement continues in 2026:
PNGRB remains the regulator for the midstream and downstream petroleum and natural-gas sectors under the PNGRB Act, 2006.
Appeals against PNGRB orders continue to lie before APTEL under Section 33.
APTEL provides for a Technical Member dealing with petroleum and natural-gas matters.
The statutory target for disposing of such appeals is 90 days.