Indraprastha Gas Ltd moves High Court against tariff cut
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Indraprastha Gas Scrip Drops 34%; Co Moves Court Against Order To Slash Tariff
Gas utility scrips took a beating headed by Indraprastha Gas Ltd (IGL) that lost around 34% accompanying the Petroleum and Natural Gas Regulatory Board (PNGRB) order asking it to slash tariff.
Since the scrip is part of the futures and options division, exchanges do not apply circuit filter.
If Indraprastha Gas Ltd were to instantly execute the PNGRB apprised rates, then it would have led to lower consumer duty.
Indraprastha Gas Ltd has approached the DHC challenging the constitutionality and authority of the powers of the Board to fix the duty.
While declining to give any quantum on the decline in tariff, Mr M. Ravindran, Managing Director, IGL, said, “Any change in consumer tariff will be effected only after the Court directive.”
Analysts were fast to lower the Indraprastha Gas (IGL) share on Tuesday.
Market-men estimate a balance sheet tightening of Rs 1,500-1,700 crore on refund of surplus tariff to clients.
While talking to media on Tuesday, Mr. Ravindran stated, “No separate communication has been received as yet from PNGRB ... No opportunity for personal hearing was given to IGL.”
The company anticipated the Court to hear the issue within 1-2 days.
It has also approached the appellate authority for relief on commercial issue.
The GAIL (India) CMD, Mr. B.C. Tripathi, stated, “This will have a negative impact on the industry. In an otherwise depressed scenario — domestic gas availability is on the decline and its dependence on LNG growing — City Gas Distribution is the only category where the industry was looking at growth and expansion.”
Indraprastha Gas Ltd moves High Court against tariff cut
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