Question map
Consider the following statements : 1. Petroleum and Natural Gas Regulatory Board (PNGRB) is the first regulatory body set up by the Government of India. 2. One of the tasks of PNGRB is to ensure competitive markets for gas. 3. Appeals against the decisions of PNGRB go before the Appellate Tribunals for Electricity. Which of the statements given above are correct?
Explanation
The correct answer is option B (statements 2 and 3 only).
**Statement 1 is incorrect**: PNGRB was constituted under The Petroleum and Natural Gas Regulatory Board Act, 2006, notified via Gazette Notification dated 31st March 2006.[1] It was not India's first regulatory body—several others like TRAI (1997) and SEBI (1992) were established earlier.
**Statement 2 is correct**: The Petroleum and Natural Gas Regulatory Board (PNGRB) was created in 2006 to protect the interests of consumers and entities engaged in the sector and to promote competitive markets.[2] Ensuring competitive markets for gas is indeed one of PNGRB's key tasks.
**Statement 3 is correct**: The Appellate Tribunal established under section 110 of the Electricity Act, 2003 shall be the Appellate Tribunal for the purposes of this Act and the said Appellate Tribunal shall exercise the jurisdiction, powers and authority conferred on it by or under this Act.[3] This confirms that appeals against PNGRB decisions go to the Appellate Tribunal for Electricity.
Sources- [1] https://pngrb.gov.in/pdf/Action_Plan2025-26.pdf
- [2] https://niti.gov.in/sites/default/files/2020-01/IEA-India%202020-In-depth-EnergyPolicy_0.pdf
- [3] https://www.indiacode.nic.in/bitstream/123456789/2012/1/2006____19.pdf
PROVENANCE & STUDY PATTERN
Full viewThis question looks technical but is actually a 'Chronology Trap'. Statement 1 is the killer key—knowing SEBI (1992) or TRAI (1997) predate PNGRB (2006) solves the whole question via elimination. You didn't need to know the obscure fact about the Electricity Tribunal (Statement 3) to get the marks.
This question can be broken into the following sub-statements. Tap a statement sentence to jump into its detailed analysis.
- Statement 1: Was the Petroleum and Natural Gas Regulatory Board (PNGRB) the first regulatory body set up by the Government of India?
- Statement 2: Does the mandate of the Petroleum and Natural Gas Regulatory Board (PNGRB) include ensuring competitive markets for natural gas?
- Statement 3: Are appeals against decisions of the Petroleum and Natural Gas Regulatory Board (PNGRB) heard by the Appellate Tribunal for Electricity?
States PNGRB was set up in 2006 under the PNGRB Act, 2006, giving a concrete establishment date for PNGRB.
A student can compare this 2006 date with establishment dates of other regulatory/statutory bodies to judge whether PNGRB was the first.
Notes that the Oil and Natural Gas Commission (ONGC) was established in 1956, showing an earlier government body in the petroleum sector.
Use the 1956 date for ONGC to infer that an institutional body related to oil/gas existed long before 2006, suggesting PNGRB was not the first.
Also states ONGC was set up in 1956 and that systematic oil exploration began after that, reinforcing the existence of earlier statutory bodies.
A student could treat ONGC (1956) as an example of pre-2006 regulatory/ statutory institutions and seek other such bodies to test the claim.
Describes the Central Ground Water Authority (CGWA) being set up in 1997 as a regulatory body, showing that regulatory bodies were created before 2006 in other resource areas.
Compare the 1997 establishment of CGWA with PNGRB's 2006 date to argue that PNGRB was not the first regulatory body overall.
Presents an objective-style question that lists the statement as a proposition to be judged (implying it is contestable and commonly tested).
A student can use this as a prompt to verify dates/chronology of regulatory bodies cited in textbooks to answer the question.
- Identifies the Petroleum & Natural Gas Regulatory Board Act, 2006 as part of reforms to make energy markets competitive.
- Places PNGRB Act alongside laws whose purpose is to ensure energy markets are competitive and prices reflect true resource costs.
- Specifies PNGRB regulates marketing, distribution and sale of natural gas — core market activities.
- States regulation is aimed at ensuring uninterrupted and adequate supply, implying an active market-regulatory role (though not explicit about competition).
- The PNGRB Act explicitly designates the Appellate Tribunal established under section 110 of the Electricity Act, 2003 as the Appellate Tribunal for the PNGRB Act.
- This means appeals under the PNGRB Act are to be heard by the Appellate Tribunal constituted under the Electricity Act (i.e., the Appellate Tribunal for Electricity).
- The Act contains a chapter titled 'APPEALS TO APPELLATE TRIBUNAL', indicating appeals from the Board go to an Appellate Tribunal.
- The chapter headings list '30. Appellate Tribunal' and '31. Technical Member (Petroleum and Natural Gas)', confirming appellate matters under the PNGRB Act are handled by that Tribunal.
Defines PNGRB as a statutory body regulating petroleum and natural gas (excluding production), showing its sectoral scope is oil/gas rather than electricity.
A student could use this sector distinction (oil/gas vs electricity) with knowledge that appellate bodies are often sector-specific to question whether an electricity tribunal would hear gas sector appeals.
Mentions the Appellate Tribunal for Electricity (ATe) in the context of strengthening it to resolve electricity disputes, indicating ATe's primary domain is electricity.
Combine this with the PNGRB's oil/gas remit to infer ATe likely deals with electricity matters only, so appeals from a gas regulator may not go there.
Shows a pattern where sectoral regulators (e.g., SEBI, PFRDA, IRDA) have a dedicated appellate tribunal (Securities Appellate Tribunal) to hear appeals against regulator orders.
Use the general rule that regulators often have sector-specific appellate tribunals to hypothesise that PNGRB might have its own appellate route rather than using the electricity tribunal.
Contains an exam-style question listing the proposition that 'Appeals against decisions of PNGRB go before the Appellate Tribunals for Electricity' as a testable statement.
Treat this as a flag that the claim is contested/checked in standard sources, prompting verification of the correct appellate forum for PNGRB decisions.
Repeats the same three statements including the one about appeals to the Appellate Tribunal for Electricity, reinforcing that this is a specific claim subject to validation.
A student can note this recurring claim in study materials and look up the PNGRB Act or tribunal jurisdiction rules to confirm the true appellate path.
- [THE VERDICT]: Sitter (via Elimination of Stmt 1). Source: Basic General Awareness of SEBI/TRAI vs PNGRB.
- [THE CONCEPTUAL TRIGGER]: Regulatory Bodies & Quasi-Judicial Institutions (GS2 Polity / GS3 Infrastructure).
- [THE HORIZONTAL EXPANSION]: Map Regulators to Appellate Tribunals: SEBI/PFRDA/IRDAI → SAT; TRAI/AERA/Cyber → TDSAT; CERC/PNGRB → APTEL; CCI/IBC → NCLAT.
- [THE STRATEGIC METACOGNITION]: When a statement claims 'First ever', pause and run a mental timeline check. Does this 2006 body predate the 1991 reforms bodies (SEBI)? Impossible.
PNGRB was constituted in 2006 as a statutory regulator for downstream petroleum and natural gas activities.
Knowing PNGRB's establishment year and functional scope helps answer questions about regulatory chronology in energy governance and distinguishes regulator mandates from production functions. This concept links to policy timeline questions and comparisons between sectoral regulators.
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 15: Infrastructure > Petroleum and Natural Gas Regulatory Board > p. 447
Central Ground Water Authority was set up in 1997 to regulate and control groundwater development and management.
Recognising earlier regulators prevents assuming PNGRB was first; useful for chronology-based UPSC questions about institutional evolution across ministries. This concept aids elimination of incorrect 'first institution' options and connects to administrative law and environmental governance topics.
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 11: Irrigation in India > CENTRAL GROUND WATER AUTHORITY (CGWA) > p. 368
Organisations like ONGC (established 1956) perform exploration and production, whereas statutory bodies such as PNGRB perform regulatory functions.
Distinguishing regulatory bodies from state-owned operators is high-yield for governance and economy questions; it clarifies roles in sectoral policy, helps in questions on institutional design, and supports analysis of regulatory reforms versus public sector operations.
- Geography of India ,Majid Husain, (McGrawHill 9th ed.) > Chapter 8: Energy Resources > Petroleum > p. 9
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 15: Infrastructure > Petroleum and Natural Gas Regulatory Board > p. 447
PNGRB's mandate covers refining, processing, storage, transportation, distribution, marketing and sale of natural gas but excludes upstream production.
High-yield for UPSC: distinguishes downstream regulatory institutions from upstream public companies; links to questions on sectoral regulation, market design and institutional roles. Helps answer questions on who regulates what in the petroleum–gas value chain.
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 15: Infrastructure > Petroleum and Natural Gas Regulatory Board > p. 447
The PNGRB Act is listed among legal measures intended to reform energy markets so they are competitive and prices reflect true resource costs.
Important for policy and governance papers: explains legislative tools used to foster competition in energy sectors, and connects to topics on regulatory economics, tariff policy and sectoral reforms.
- Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 23: India and Climate Change > Several other provisions > p. 312
PNGRB is tasked with ensuring uninterrupted and adequate supply while the Act is associated with making energy markets competitive, highlighting dual regulatory aims.
Useful for analytical answers contrasting objectives of regulators (consumer supply/security vs market efficiency/competition); enables critical evaluation of regulatory priorities in UPSC essays and mains answers.
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 15: Infrastructure > Petroleum and Natural Gas Regulatory Board > p. 447
- Environment, Shankar IAS Acedemy .(ed 10th) > Chapter 23: India and Climate Change > Several other provisions > p. 312
PNGRB is the statutory regulator for refining, processing, storage, transportation, distribution, marketing and sale of petroleum, petroleum products and natural gas (excluding production).
High-yield for UPSC because questions test institutional roles and sectoral jurisdiction; mastering PNGRB helps answer queries on energy governance, regulator functions, and overlaps between ministries and regulators. This concept connects to public administration, infrastructure policy, and regulation-related legal questions.
- Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 15: Infrastructure > Petroleum and Natural Gas Regulatory Board > p. 447
TDSAT (Telecom Disputes Settlement and Appellate Tribunal) also hears appeals for AERA (Airports Economic Regulatory Authority) and Cyber Appellate matters. UPSC loves 'Shared Tribunal' questions.
The 'Grandfather Check': For any 'First' claim, ask 'Did we have stock market regulation in the 90s?' (Yes, SEBI). 'Did we have telecom regulation in the 90s?' (Yes, TRAI). PNGRB is a 2006 body. It cannot be the first. Eliminate Stmt 1 → Answer B.
Connects to GS3 Infrastructure (Energy): Independent regulation is a prerequisite for private sector entry (e.g., City Gas Distribution) to prevent state monopoly abuse and ensure fair carrier access.