According to the rating agency ICRA, the time extension granted to the city gas distribution (CGD) players for implementation of projects will provide only a temporary breather to these companies. As reported, the industry was expecting a higher extension period of as long as two years in some cases due to the operational difficulties faced in terms of availability of labour and equipment even after the lockdowns were lifted.
The Petroleum and Natural Gas Regulatory Board (PNGRB) has granted a limited time period extension to 41 CGD players setting up projects in 185 geographical areas in order to complete their work commitments. However, a majority of these 185 entities have received basic extension of 129 days only. About 38 CGD players have received extensions ranging from 136-251 days.
The extension has been given by PNGRB in view of delays that occurred due to the lockdown imposed to curb the spread of Covid-19 pandemic.