UPSC Prelims 2019 Q74: Indian Economy – Infrastructure & Industry
- (a) 1 and 2 only
- (b) 2 and 3 only
- (c) 1 and 3 only
- (d) 1, 2 and 3
Answer: (b) 2 and 3 only
Explanation
Petroleum and Natural Gas Regulatory Board (PNGRB)
| Statement | Claim | Verdict | Detail |
|---|---|---|---|
| 1 | PNGRB is the first regulatory body set up by Government of India | FALSE | Many regulators pre-date PNGRB - SEBI (1988/1992), TRAI (1997), IRDA (1999), CERC (1998) - all earlier. PNGRB was set up in 2006/2007. |
| 2 | PNGRB ensures competitive markets for gas | TRUE | PNGRB Act 2006 explicitly mandates the Board to ensure competition, protect consumer interests, and promote efficient market functioning in the downstream petroleum sector. |
| 3 | Appeals against PNGRB go to Appellate Tribunal for Electricity (APTEL) | TRUE | Section 30 of the PNGRB Act designates APTEL (constituted under Electricity Act 2003) as the appellate authority for PNGRB decisions - a rare cross-sector arrangement. |
Statements 2 and 3 are correct. Answer: (b) 2 and 3 only.
Answer: (b) 2 and 3 only.
Why each option is right or wrong
- (a) Incorrect. Statement 1 is wrong - PNGRB (2006) is not the first regulator; SEBI, TRAI, IRDA, CERC predate it.
- (b) CORRECT. PNGRB ensures competitive gas markets (S2) and its appellate authority is APTEL (S3). Statement 1 is factually wrong.
- (c) Incorrect. Statement 3 (APTEL appeals) is also correct.
- (d) Incorrect. Statement 1 is wrong.
Key point
PNGRB (2006/07) = downstream petroleum/gas regulator (not first). Ensures competitive gas markets. Appeals -> APTEL (unique cross-sector arrangement).
Remember
Statements 2 and 3 are correct. The Petroleum and Natural Gas Regulatory Board (PNGRB) ensures competitive markets for gas (its statutory mandate), and appeals against its decisions go before the Appellate Tribunal for Electricity (APTEL). However, PNGRB (2006/07) is NOT the first regulator set up in India - SEBI, TRAI, IRDA, CERC all predate it.
Common mistakes
- Assuming any energy regulator is the 'first' - many pre-date PNGRB.
- Confusing PNGRB (downstream) with DGH/Directorate General of Hydrocarbons (upstream exploration).
- Not knowing APTEL is the appellate body for BOTH electricity AND petroleum sectors.
Exam tip
Indian regulators (year set up): SEBI (1988/1992). TRAI (1997). CERC (1998). IRDA (1999). AAI (1994). CCI (2003). PFRDA (2003/2013 statutory). PNGRB (2006/07). FSSAI (2008). RERA/State bodies (2016). Not first, but core for their sectors.
Sources
- PNGRB Act, 2006 - Full text
- APTEL rules - Cross-sector appellate authority provisions