Mumbai: IGL stock surged nearly 18 percent after the Supreme Court on Wednesday dismissed the PNGRB appeal against the Delhi High Court decision to quash the regulator’s order of fixing the prices of CNG and PNG in Delhi and adjoining areas.
Following the move, Indraprastha Gas Ltd’s scrip jumped 16.47 percent to Rs 486.65 at the BSE.
On the NSE, it climbed 17.75 percent to Rs 492 — its 52-week high.
A bench headed by Justice Dipak Misra rejected the appeal of Petroleum and Natural Gas Regulatory Board (PNGRB) that it has the right to determine the prices of compressed natural gas (CNG) and piped natural gas (PNG).
On June 1, 2012, the High Court had set aside the April 9, 2012 order of PNGRB slashing the network tariff and compression charges for CNG distributed by IGL in the capital and adjoining areas, terming it as “illegal”.
It came on a plea by IGL which contended that the PNGRB did not give it a hearing and calculated the tariff on the basis of the 2008 price levels for various inputs and charges.
IGL had pleaded against the regulatory board’s decision to regulate its network tariff and selling price.
The board, in its order, had asked IGL to cut down its network tariff by 63 percent with retrospective effect.