Adani Gas to pay Rs 400cr penalty to PNGRB for hiding crucial information
The Petroleum and Natural Gas Regulatory Board of India (PNGRB) is likely to cancel Adani Gas licenses and also levy Rs 400 crore penalty for not disclosing crucial information about the scheme of arrangement with Adani Enterprises. The regulatory board recently sent Adani Gas a notice in this regard and is yet to receive a response from the company.
It may be noted that the company, Adani Gas, has bid for gas projects using net worth calculation of Adani Enterprises and the company’s shareholding changes and restructuring violated city gas distribution regulations. Adani Gas shares slumped as much as 9.6% to Rs 156.25 per share on Bombay Stock Exchange (BSE) in the opening trade.
Secondly, the regulator is yet to approve Adani Gas’ proposed deal with French oil major Total SA. In the deal, the latter agreed to acquire a 37.4% stake in Adani Gas for around Rs5,700 crore. The deal was approved by the Competition Commission of India in November 2019.
Meanwhile, Adani Gas also recently announced a plan to invest in setting up of CGD network over the next 10 years the cost of which is estimated to be Rs 9,000 crore. Apart from this, Adani Gas and Indian Oil also won city gas licenses for 38 geographical areas spread over 71 districts in 15 states in recent bid rounds.