The Petroleum and Natural Gas Regulatory Board (PNGRB) on September 17, 2025, issued the Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build, Operate or Expand Petroleum and Petroleum Products Pipelines) Amendment Regulations, 2025 to further amend the Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build, Operate or Expand Petroleum and Petroleum Products Pipelines) Regulations, 2010.
The following amendments have been stated:
• In regulation 2, clause (1), sub clause (s), defining, “Performance Bond” shall be inserted, after sub clause(r): -“The Performance Bond, as the case may be, shall include Demand Draft or Pay Order or Bank Guarantee from any scheduled Bank of India or Insurance Surety Bond from Insurance Companies, licensed / notified by Insurance Regulatory and Development Authority of India (IRDAI) for the amount as specified in the regulation”.
• In regulation 8, clause (1) after the word “Explanation”, the following words shall be inserted: -
“The performance Bond by way of Insurance Surety Bonds will be accepted to the extent of maximum upto 50% of the amount as specified in the regulation and balance 50% will be accepted by way of any of other instruments as mentioned in the definition of Performance Bond at Regulation 2(1)(s)”. However, Entity is free to provide the performance security by way of Bank Guarantee/DD/Pay Order to the extent of 100% of the value as stipulated in the respective regulation.
• In regulation 17, clause 3, sub clause (b), the word “or bank guarantee” shall be deleted.
• In regulation 17, clause (3), after sub clause (b) the following proviso shall be inserted: -
“Provided that in case of encashment of performance Bond, firstly Bank Guarantee will be encashed followed by Insurance Surety Bond and other instruments, as the case may be.”
[Notification No. PNGRB/Comm/7Misc (5)/2025 (E-5734)/03]
