Ogra defies CNG licence ban violation charges

ISLAMABAD - Dispelling the allegations, Oil and Gas Regularity Authority (Ogra) has clarified that it did not violate the ban imposed on issuance of new CNG stations licences and no ministry or government department has been kept in darkness in this regard. Oil and Gas Regularity Authority (Ogra) in its report, pertaining to the much-debated issue of issuing 500 illegal CNG stations licences, submitted to National Assembly Secretariat and National Assembly Standing Committee on Petroleum and Natural Resources said that no new provisional licence was issued after the imposition of ban by the Federal Government. As many as 52 marketing licences were granted for operation of CNG stations after completion of formalities as per CNG Rules, 1992, and provisional licences were issued prior to the ban imposed on issuance of new provisional licenses, the report said, adding, since the ban for Balochistan was lifted on 08-08-2008 by the Federal Government, 13 Provisional Licences were granted for Balochistan province. 01 Provisional License to M/S Express Link, Sheikhupura was granted by the Authority keeping in view the decision of the Honourable Supreme Court (SC), the report adds. Ogra further clarified that had there been a ban on issuance of marketing licenses and extension of the Provisional Licenses, Ogra would not have issued either any marketing Licenses or would have granted extension as per Rule 10 of CNG Rules, 1992. Further, all the Provisional Licence holders were granted extensions in accordance with Rule 10 of CNG Rules, 1992 and Authority's decision taken from time to time. An investment has been made at the time of grant of Provisional Licence by the applicants, which is in the form of purchase/ lease of land which varies from bare minimum amount in small villages to exorbitant price. With the grant of Provisional licence a matter of right for completion of the project is created for its holder, which is protected under the law, Ogra said in its report exclusively available with TheNation. Additionally, the Marketing Licenses were granted to already provisional licence holders after submission of the requisite NOC's, Explosive Licence on Form-B from the Chief Inspector of Explosives (which confirm that the CNG station is complete in all respects) and 3rd party inspection report that the CNG station complies with the requirements as laid down in Standard Code of practice/CNG Rules, 1992. "Ogra has issued licenses in total transparency as every license is invariably copied to Ministry of Petroleum and Natural Resources (MPNR) and Ministry of Industries along with other Government Departments. Had there been any malpractices in the system, MPNR, the relevant ministry responsible would have intervened. Ogra has issued every license on the basis of Explosive License granted by Chief Inspector of Explosive, Ministry of Industries. MPNR also provided the clarification of ban to both gas companies i.e Sui Nortern Gas Pipelines Limited and Sui Southern Gas Company Limited, which are working under the administrative control of MPNR. Hydrocarbon Development Institute of Pakistan (HDIP) never raised the issue of ban. Federal Government/ MPNR has obtained data related to grant of licenses at different occasions including incorporation in budget speech of Finance Minister. Ogra has regularly updated the data with respect to CNG licenses on its website. However, according to well-informed sources, several Provisional Licenses had been converted into Marketing Licenses and final decision in this regard is to be given by NA body. Sources were of the view that a sub-committee is likely to recommend stern actions against those found involve in this malpractice that seriously contributed towards gas shortage in the country. It is relevant to mention that Chairman NA body Sardar Talib Nakkai during the proceeding of last meeting established a sub-committee to probe, review and analyze the much debated issue of issuing 500 illegal CNG stations licenses.

ePaper - Nawaiwaqt