Section 5 in The Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build, Operate or Expand Petroleum and Petroleum Products Pipelines) Regulations, 2010
5. Criterial for selection of entity for expression of interest route.
(1)In case the expression of interest fulfills the minimum eligibility criteria and the requirements list out at sub-regulation 6 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 person, authority or entity may submit in writing to the Board its views, if any, on the expression of interest;(3)The Board may 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 petroleum and petroleum products pipeline so as to facilitate coming up of an optimum sized petroleum and petroleum products pipeline through the bidding process as stated in regulation 7;(4)The Board shall, based on the views received within a period of thirty days ofter the last day of the public consultation period decide-(a)not to allow the proposed petroleum and petroleum products pipeline if, it is convinced that, instead of laying, building or expanding the proposed petroleum and petroleum products pipeline, the projected potential demand could be better met in cost-effective manner by expansion of an existing pipeline or any other ground; or(b)to go ahead with the proposal with or without modification:Provided 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 ensuring adequate availability of petroleum products throughout the country;(iv)protection of consumer interest;(v)facilitating rapid development of petroleum and petroleum products 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 web hosting) the proposal for the development of petroleum and petroleum products 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 along with 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 as amended from time to time by the Board:(b)entity is technically capable of laying and building petroleum and petroleum,products pipeline as per the following qualifying criteria, namely:-(i)entity has on its own, either departmentally or through contractors hired by it 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 per cent 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 petroleum, petroleum products pipeline on lump sum turnkey or project management consultancy basis through one or more technically 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 their technical competence:Provided that the entity shall have the freedom to choose 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 and pre-commissioning of hydrocarbon pipelines to independently undertake and execute the petroleum and petroleum products 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 petroleum and petroleum products 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 petroleum and petroleum products pipeline of a length not less than three hundred kilometers on a cumulative basis;(ii)entity has a joint venture with another entity (with at least eleven per cent. holding of that entity) which has an experience of at least one year in operations and maintenance of a petroleum and petroleum products pipeline;(iii)entity intends to operate and maintain the proposed petroleum, petroleum products pipeline through an appropriate firms 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 petroleum and petroleum products pipeline; or(iv)entity has an adequate number of technically qualified personnel with experience in commissioning and operation and maintenance (O&M) of petroleum petroleum, products pipeline and also has a plan to independently undertake the O&M activities of a petroleum petroleum products 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 along with the proof of relevant 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 petroleum and petroleum products pipeline and the Board reserves the right to cross verify the credential of the fum or firms included in this list and seek any clarifications;
