Section 5 in The Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build, Operate or Expand City or Local Natural Gas Distribution Networks) Regulations, 2008
5. Criteria for selection of entity for expression of interest route.
(1)The Board may carry out a preliminary assessment of the expression of interest with respect to the following, namely:(a)natural gas availability position;(b)possible connectivity with an existing or proposed natural gas pipeline for supply of natural gas to the city gate of the proposed CGD network, including LNG supplies by tank wagons and CNG by cascades; and(c)any other relevant issue as the Board may consider necessary.(2)The Board may, within fifteen days of the receipt of expression of interest and based on its preliminary assessment either issue an open advertisement in at least one national and one vernacular daily newspaper (including webhosting) publishing receipt of an expression of interest and commencement of public consultation process period of thirty days or reject the expression of interest:Provided that in case the Board rejects the expression of interest, it shall inform the entity of the decision alongwith the reasons for rejecting the expression of interest.(3)During the period of public consultation process, any person or entity may submit in writing to the Board its views, if any, on the expression of Interest.(4)The Board may, based on the views received and taking into consideration the criteria specified in Schedule A, decide or fix the authorized area for the proposed CGD network, including the decision whether it should be different from that indicated in the expression of interest.(5)The Board may, within a period of fifteen days after the end of the public consultation process period, publish through an open advertisement in at least one national and one vernacular daily newspaper (including webhosting), the proposal for the development of CGD network 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 under the Petroleum and Natural Gas Regulation) 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 unless there is a requirement to pay additional application fee on account of change in the authorized area;(b)entity is technically capable of laying and building CGD network as per the following qualifying criteria, namely:-(i)entity has on its own in the past laid and built either a [hydrocarbon steel pipeline] [Substituted 'hydrocarbon pipeline' by Notification No. G.S.R. 605(E), dated 19.7.2010 (w.e.f. 19.3.2008)] of a length not less than three hundred kilometers on a cumulative basis or a CGD network; [or] [Inserted by Notification No. F.No.PNGRB/Auth./CGD/Amd/2018, dated 6.4.2018 (w.e.f. 19.3.2008).](ii)entity has a joint venture with another entity (with at least eleven percent equity holding by that entity) which in the past has laid and built either a [hydrocarbon steel pipeline] [Substituted 'hydrocarbon pipeline' by Notification No. G.S.R. 605(E), dated 19.7.2010 (w.e.f. 19.3.2008)] of a length not less than three hundred kilometers on a cumulative basis or a CGD network; [or] [Inserted by Notification No. F.No.PNGRB/Auth./CGD/Amd/2018, dated 6.4.2018 (w.e.f. 19.3.2008).](iii)entity intends to lay and build proposed city or local gas distribution network on lump sum turnkey or project management consultancy basis through one or more technically competent firms which in the past have laid and built either a [hydrocarbon steel pipeline] [Substituted 'hydrocarbon pipeline' by Notification No. G.S.R. 605(E), dated 19.7.2010 (w.e.f. 19.3.2008)] of a length not less than three hundred kilometers on a cumulative basis or a CGD network and the entity shall also enclose a list of such firms alongwith aforesaid proof of their 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 any clarifications; or(iv)entity has an adequate number of technically qualified personnel with experience in construction, pre-commissioning and Commissioning of [hydrocarbon steel pipeline] [Substituted 'hydrocarbon pipeline' by Notification No. G.S.R. 605(E), dated 19.7.2010 (w.e.f. 19.3.2008)] and also has a credible plan to Independently undertake and execute the CGD 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 [three years] [Substituted 'one year' by Notification No. G.S.R. 605(E), dated 19.7.2010 (w.e.f. 19.3.2008).] in the following areas namely:-(i)right of way or clearance securing;(ii)design and execution of a [hydrocarbon steel pipeline] [Substituted 'hydrocarbon pipeline' by Notification No. G.S.R. 605(E), dated 19.7.2010 (w.e.f. 19.3.2008)] project;(iii)pre-commissioning including hydro-tasting and restoration; and(iv)safety of [hydrocarbon steel pipeline] [Substituted 'hydrocarbon pipeline' by Notification No. G.S.R. 605(E), dated 19.7.2010 (w.e.f. 19.3.2008)] and installations;(c)entity is technically capable of operating and maintaining a EGD network as per the following qualifying criteria, namely:-(i)entity on its own has an experience experience of at least one year in operations and maintenance of a network; [or] [Inserted by Notification No. F.No.PNGRB/Auth./CGD/Amd/2018, dated 6.4.2018 (w.e.f. 19.3.2008).](ii)entity has a joint venture with another entity (with eleven percent holding of that entity) which has an experience of at least one year in operations and maintenance of a CGD network; [or] [Inserted by Notification No. F.No.PNGRB/Auth./CGD/Amd/2018, dated 6.4.2018 (w.e.f. 19.3.2008).](iii)entity intends to operate and maintain the proposed CGD network through an appropriate 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 CGD network; or(iv)entity has an adequate number of technically qualified personnel with experience in commissioning, and operation and maintenance (O&M) of [hydrocarbon steel pipeline] [Substituted 'hydrocarbon pipeline' by Notification No. G.S.R. 605(E), dated 19.7.2010 (w.e.f. 19.3.2008)] and also has a credible plan to independently undertake the (O&M) activities for a CGD project 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 CGD network 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 city or local gas distribution network.
