Oil regulator Petroleum and Natural Gas Regulatory Board (PNGRB) on Thursday said framing of 'Access Code' would lay the foundation for competitive gas pricing in the country.
The PNGRB which has notified the guidelines for access code is taking feedback from all the stakeholders. It along with CII had organised a round table discussion 'Access Code Issues: SMEs sector', with SMEs from Gujarat, to get their feedback before finalising the code draft.
"The access code aims at establishing industry wide transparent and uniform principles for allowing entities to gain or allow access to pipelines systems and city gas distribution (CGD) networks," PNGRB Chairman L Mansingh said.
In the world CGD network is close to 20 per cent of the total gas consumption while in India it is at nine per cent at present, he said, adding they expect the network to reach 15 per cent in next five years.
"The objective of this code is to promote development of a competitive gas market by establishing uniform principles for owners and users of gas pipelines to allow transparent and non-discriminatory access to the gas pipelines and CGD networks," Mansingh said.
Gujarat is the only state in country with a well developed CGD network. Around 3,000 SMEs spread across the state are catered by seven CGD companies here.