NEW DELHI: Shares of Adani Gas cracked 14 per cent in Fridays trade amid reports suggesting that PNGRB has sought to cancel the companys licence over violation of CGD regulations.Petroleum and Natural Gas Regulatory Board of India has sent a notice to Adani Gas for failing to disclose crucial information regarding a scheme of arrangement with Adani Enterprises, CNBC Awaaz reported.Quoting sources it suggested that PNGRB is seeking to cancel the Adani Gas licence and levy Rs 400 crore penalty for the violations.On Friday, the scrip fell 14.37 per cent to hit a low of Rs 148 on BSE.
Later the stock recovered, but was still trading 5 per cent lower.The news came at time when Adani Gas is looking to invest up to Rs 9,000 crore in setting up city gas distribution network over the next 10 years to retail CNG to automobiles and piped cooking gas to households in those areas where it won licences in the recent bidding round.Adani Gas on its own and in a joint venture with state-owned IOC has won city gas licence for 38 geographical areas spread over 71 districts in 15 states in recent bid roundsPNGRB has in the last couple of years conducted two licensing rounds that have expanded the coverage of city gas network to over 400 districts covering 70 per cent of the population of the country.
It is a part of the government vision to raise the share of natural gas in the energy mix to 15 per cent by 2030 from current 6.2 per cent.