New Delhi : The Petroleum and Natural Gas Regulatory Board (PNGRB) wants gas utilities like GAIL India Ltd to separate their gas transportation and marketing businesses so that ownership of a pipeline does not provide any firm with an unfair advantage while selling the fuel. “The purpose of this policy is to ensure that pipeline ownership does not provide any competitive advantage to any gas seller and abuse of market power while establishing an efficient gas grid with open access for all the players on a non discriminatory basis,” the concept paper said.

Detailing a roadmap, the regulator said accounts of pipeline transportation and gas marketing should first be segregated. This should be followed by creation of separate “identifiable legal entities along functional lines ie., production, transportation, marketing of natural gas etc.” Finally, the ownership and management control of these separate entities should be segregated.

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