Section 5 in The Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build, Operate or Expand Natural Gas Pipelines) Regulations, 2008
5. Criteria for selection of entity for expression of interest route.
(1)In case the expression of interest fulfills the criteria and the requirements stated at Schedule A, the Board shall issue an open advertisement in at least one national and one vernacular daily newspaper (including web hosting) publishing receipt of an expression of interest and commencement of public consultation period of thirty days.(2)During the period of public consultation process any other entity which may be interested in laying, building, operating or expanding a natural gas pipeline referred to in sub-regulation (1) may submit in writing to the Board its views, if any, on the expression of interest.(3)The Board shall web-host all comments received to facilitate possible contracts for capacity booking by different entities with the entities that may be interested in the development of natural gas pipeline so as to facilitate coming up of an optimum sized natural gas pipeline through the bidding process as stated in regulation 7.(4)The Board shall, based on the views received, within a period of forty five days after the last day of the public consultation period decide-(a)to reject the expression of interest on grounds of non-availability of natural gas;(b)not to allow the proposed natural gas pipeline if it is convinced that, instead of laying, building or expanding the proposed natural gas pipeline, the projected potential demand could be better met in cost effective manner by expansion of an existing pipeline; or(c)to go ahead with the proposal with or without modification:Provided that, if required, the Board may also hold an open house discussion with the entities who have offered their views to arrive at a decision:Provided further that the Board in deciding so shall be guided by one or more of the following objectives, namely:-(i)promoting competition among entities;(ii)avoiding infructuous investment;·(iii)maintaining or increasing supplies or for securing equitable distribution or ensure adequate availability of natural gas throughout the country;(iv)protection of customers' interest in terms of availability of natural gas at reasonable natural gas pipeline tariff;(v)incentivizing rapid development of natural gas pipeline infrastructure.(5)The Board may, within the period specified in sub-regulation (4), publish through an open' advertisement in at least one national and one vernacular daily newspaper (including webhosting), the proposal for the development of natural gas pipeline and invite bids for the same.(6)The Board shall scrutinize the bids received in response to the advertisement in respect of only those entities which fulfill the following minimum eligibility criteria, namely:-(a)entity has paid the application fee alongwith the application-cum-bid as specified for trunk lines as specified under regulation 3 of the Petroleum and Natural Gas Regulatory Board (Levy of Fee and Other Charges) Regulations, 2007:Provided that the entity submitting the bid, which has already paid the application fee at the time of submission of the expression of interest, shall not pay the application fee at this stage;(b)entity is technically capable of laying and building natural gas pipeline as per the following qualifying criteria, namely:-(i)entity has on its own in the past laid and built either a hydrocarbon pipeline of a length not less than three hundred kilometers on a cumulative basis or a city or local natural gas distribution network;(ii)entity has a joint venture with another entity (with at least eleven percent equity holding by that entity) which in the past has either laid and built a hydrocarbon pipeline of a length not less than three hundred kilometers on a cumulative basis or a city or local natural gas distribution network;(iii)entity Intends to lay and build proposed natural gas pipeline on lump sum turnkey or project management consultancy basis through one or more technical competent firms, which in the past have laid and built a hydrocarbon pipeline of a length not less than three hundred kilometers or a city or local natural gas distribution network and the entity shall also enclose a list of such firms along with aforesaid proof of the technical competence:Provided that the entity shall have the freedom to choose from amongst such firms at the time of execution of the project and the Board reserves the right to cross verify the credential of the firms included in the list and seek clarifications; or(iv)entity has an adequate number of technically qualified personnel with experience in construction, pre-commissioning and commissioning of hydrocarbon pipelines and also has a credible plan to Independently undertake and execute the natural gas pipeline project on a standalone basis.Explanation. - The entity shall have at least three technically qualified personnel on its permanent rolls having experience of not less than one year in the following areas, namely:-(a)right of way acquisition or clearance securing;(b)design and execution of a hydrocarbon pipeline project;(c)pre-commissioning including hydro-testing and restoration; and(d)safety of hydrocarbon pipeline and installations;(c)entity is technically capable of operating and maintaining natural gas pipeline as per the following qualifying criteria, namely:-(i)entity on its own has an experience of at least one year in operations and maintenance of a natural gas pipeline of a length not less than three hundred kilometers on a cumulative basis or a city or local natural gas distribution network;(ii)entity has a joint venture with another entity (with at least eleven percent holding of that entity) which has an experience of at least one year in operations and maintenance of a natural gas pipeline or a city or local natural gas distribution network;(iii)entity intends to operate and maintain the proposed natural gas pipeline through an appropriate firm technical assistance agreement for a period of at least one year with another party having experience of at least one year in operations and maintenance of a natural gas pipeline or a city or local natural gas distribution network; or(iv)entity has an adequate number of technical qualified personnel with experience in commissioning and operation and maintenance (O&M) of natural gas pipeline and also has a credible plan to independently undertake the O&M activities of a natural gas pipeline on a standalone basis.Explanation. - 1. In relation to sub-clause (iii), -(a)the entity shall submit in its application-cum-bid an exhaustive list of proposed firms with whom it desires to have a technical assistance agreement alongwith the proof of relevant and credible experience of such firms and the entity may choose a firm or more from amongst the firms in this list for operation and maintenance of the proposed natural gas pipeline and the Board reserves the right to cross verify the credential of the firm or firms included in this list and seek any clarifications;(b)the entity shall also submit a credible plan along with the bid to develop an in-house O&M team for the proposed natural gas pipeline.
