Which subsector of petroleum and natural gas (PNG) sector is regulated by DGH?
The petroleum and natural gas (PNG) sector has 4 subsectors viz. exploration and production of PNG, oil refining and marketing, natural gas transportation and marketing, and crude oil and petroleum products pipelines. The exploration and production of PNG is upstream and is regulated by the Directorate General of Hydrocarbons (DGH). Oil refining and marketing, natural gas transportation and marketing, and crude oil and petroleum products pipelines are downstream sectors and are regulated by Petroleum and Natural Gas Regulatory Board of India (PNGRB). The DGH was created by a government resolution in 1993; however the instrument of creation, an order of the ministry of petroleum and natural gas (MoPNG), derives its genesis from a mere resolution rather than a statute. The body is supposed to be neither independent nor regulator. It operates under the direct and complete administrative control of the ministry. It functions with the assistance of an advisory council and members of the council and staff of the DGH is appointed on deputation/tenure basis by the ministry in consultation with the DGH. So, DGH virtually functioning as an advisory wing of the ministry.
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