Sunday, 18 October 2015

MGL to pay up Rs 74 crore in backdated tariff: Appeal against ONGC rejected by PNGRB

In what is expected to come a massive blow to Mahanagar Gas Ltd MGL), the PNGRB has quashed a complaint lodged by the CGD entity for declaring the transportation tariff charged by ONGC for supply of gas through the Uran-Trombay gas pipeline. 
8MGL had argued that ONGC did not have to locus standi to charge a transportation tariff as it was a dedicated pipeline and had been in existence for a long time. 
8ONGC had billed GAIL a total of Rs 174 crore in pending tariff payments. 
8GAIL in turn raised a demand for Rs 74 crore on MGL because a large portion of the gas ferried in this pipeline went to MGL. 
8The regulator has held that ONGC was the authorized entity operating the pipeline and it is entitled to charge a tariff rate for transportation of gas. And a tariff rate is applicable from the date of authorization of the pipeline. 
8MGL will have the right to appeal and it is quitely likely that it will do do. 

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