Section 43 of The Petroleum and Natural Gas Regulatory Board Act, 2006
- (1)In the event of war or natural calamity or such other similar circumstances leading to disruption of supply of petroleum, petroleum products or natural gas, the Central Government may, for ensuring the continuous supply of petroleum, petroleum products or natural gas, by notification, either take over the control and management of any storage site, facilities and business premises of any entity and retail outlets or suspend its operations or entrust, to any agency of the Central or State Government for such time and manage it in such manner, as may be specified in that notification: Provided that the affected entities shall be given an opportunity of being heard before issuing orders to take over the control and management of retail outlets and other business premises: Provided further that in case of any urgency or in cases where the circumstances do not permit serving of notice for want of sufficient time or otherwise upon the entity against whom the order is directed, the opportunity of hearing may be dispensed with in public interest in order to maintain the uninterrupted supply of petroleum, petroleum products or natural gas for a specified period.
- (2)The collector of the revenue district in which the property referred to in the notification issued under sub-section (1) is situated shall determine the amount of compensation payable for taking over of the property.
- (3)The form and manner in which an application for claiming compensation under this section shall be made, the procedure for determining the compensation and the time within which such compensation shall be payable, shall be such as may be prescribed.
Summary
- The Central Government can take over the control and management of storage sites, business premises, or retail outlets if there is a war, natural calamity, or similar event that disrupts the supply of petroleum or natural gas.
- The government can also suspend the operations of these facilities or assign them to a state or central agency to manage during the crisis.
- Normally, the affected business owner must be given a chance to be heard before their property is taken over.
- In extremely urgent situations where there is no time for a notice, the government can skip the hearing to maintain uninterrupted fuel supplies.
- The collector of the revenue district where the property is located is responsible for figuring out how much compensation the business owner should get.
Practical examples
FAQ
1. Who has the power to take over a fuel facility under this rule?
The Central Government has this power.
2. When can the government use this power?
Only during a war, natural calamity, or similar circumstances that lead to a disruption in the supply of petroleum or natural gas.
3. Will the business owner get paid if their facility is taken over?
Yes, they are entitled to compensation.
4. Who decides the exact amount of money the owner gets?
The collector of the revenue district where the property is located determines the compensation amount.
Test yourself
Q1.Under Section 43 of The Petroleum and Natural Gas Regulatory Board Act, 2006, who is responsible for determining the amount of compensation payable when a facility is taken over?
Q2.Under Section 43 of The Petroleum and Natural Gas Regulatory Board Act, 2006, in what specific situation can the government dispense with the requirement to give the facility owner a hearing?
Q3.Under Section 43 of The Petroleum and Natural Gas Regulatory Board Act, 2006, which of the following events allows the government to trigger these takeover powers?
Q4.Under Section 43 of The Petroleum and Natural Gas Regulatory Board Act, 2006, to whom can the Central Government entrust the management of a taken-over facility?