Piyush Joshi expresses his views on the issue of infrastructure exclusivity with reference to infrastructure for City Gas Distribution in this news coverage in Business Standard.
Growth of any infrastructure sector has at its core predictable and long term legal framework that would provide suitable risk mitigation. The regulatory framework governing the City Gas Distribution (CGD) sector provides a regulatory framework that encourages high value investments in long term infrastructure development through vesting of marketing and infrastructure exclusivity, which are fundamental to ensure that the infrastructure provider has adequate incentive to continuously invest and obtain a return on investments. The manner in which regulatory framework is implemented will be watched by investors in the sector as a precedent. The sector regulator Petroleum and Natural Gas Regulatory Board abruptly issued a public notice on March 4th announcing the exclusivity granted in the Mumbai and Greater Mumbai Geographical Areas (GAs) and Vadodra city. I reflect on some of the issues in this news coverage in the Business Standard: https://bit.ly/3To58yN #CGD #naturalgas #PNGRB #infrastructure #investment #growth