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?

Updated 11 Apr 2026 · From UPSC Prelims GS Paper I 2019, Q59

Contents12
UPSC Prelims GS2019Indian Economy
  1. A1 and 2 only
  2. B2 and 3 only
  3. C1 and 3 only
  4. D1, 2 and 3
Show answer

Answer: (B) 2 and 3 only

The correct answer is (B) — 2 and 3 only.

Statement 1 is wrong because PNGRB is NOT the first regulatory body in India — bodies like SEBI and TRAI were set up earlier. PNGRB was created in 2006.

Statement 2 is correct — PNGRB's job is to protect consumers and promote competitive markets in the petroleum and natural gas sector.

Statement 3 is correct — appeals against PNGRB decisions go to the Appellate Tribunal for Electricity (APTEL), which also handles petroleum-related appeals.

Tip: PNGRB shares its appellate body with the electricity sector.

Why this was asked

PNGRB was established in 2006 to regulate petroleum and natural gas markets, but it was not India's first regulatory body — SEBI (1992) and TRAI (1997) came earlier.

Appeals from PNGRB go to the Appellate Tribunal for Electricity (APTEL), which handles both electricity and petroleum sector appeals under a shared appellate structure.

PNGRB Structure & Functions

Indian Economy Petroleum and Natural Gas Regulatory Board PNGRB competitive markets for gas

PNGRB: Structure, Functions & Key Facts

Must know

PNGRB established in 2006 under Petroleum and Natural Gas Regulatory Board Act, 2006

Primary mandate: promote competitive markets and protect consumer interests in petroleum & natural gas

Appeals against PNGRB decisions go to APTEL (Appellate Tribunal for Electricity)

Good to know

Headquarters in New Delhi, regulates city gas distribution, petroleum product pipelines

What is PNGRB

PNGRB (Petroleum and Natural Gas Regulatory Board) is India's sectoral regulator for downstream petroleum and natural gas activities. Created to bring transparency and fair competition in a sector traditionally dominated by public sector companies.

Key Functions

Function Category

Specific Role

Impact

Market Competition

Promote competitive markets for gas

Prevents monopolistic practices

Consumer Protection

Protect consumer interests

Fair pricing and service quality

Infrastructure

Regulate city gas distribution networks

Ensures access and connectivity

Pipeline Regulation

Authorize petroleum product pipelines

Controls infrastructure development

Dispute Resolution

Resolve disputes between entities

Maintains sector stability

Question Connection

Statement 2 was correct because promoting competitive markets is PNGRB's core mandate

Statement 3 was correct because APTEL handles appeals from both electricity and petroleum regulators

Exam traps

Trap: PNGRB is NOT India's first regulatory body — SEBI (1992) and TRAI (1997) came much earlier

Trap: Appeals go to APTEL, not a separate petroleum tribunal — electricity and petroleum share the same appellate body

Confusion: PNGRB regulates downstream activities, not upstream exploration (that's DGH's role)

India's Regulatory Bodies Timeline

Indian Economy first regulatory body SEBI TRAI

Evolution of Regulatory Bodies in India

Must know

SEBI (1992) was among the first major sectoral regulators post-liberalization

TRAI (1997) preceded PNGRB by nearly a decade

Good to know

Regulatory bodies emerged as part of economic reforms to ensure fair competition

Why Regulators Emerged

Post-1991 economic reforms shifted India from license-permit raj to competitive markets. Independent regulators became essential to prevent market failures, protect consumers, and ensure fair competition in newly liberalized sectors.

Major Regulatory Bodies

Regulator

Established

Sector

Key Role

SEBI

1992

Capital Markets

Securities market regulation

TRAI

1997

Telecommunications

Telecom tariff & competition

CERC

1998

Central Electricity

Power sector regulation

IRDA

2000

Insurance

Insurance market development

PNGRB

2006

Petroleum & Natural Gas

Downstream petroleum regulation

RAI

2008

Airports

Airport economic regulation

Question Connection

Statement 1 failed because SEBI (1992) and TRAI (1997) were established much before PNGRB (2006)

The trap tested knowledge of India's regulatory evolution timeline

Exam traps

Chronology Trap: PNGRB (2006) came 14 years after SEBI — not the first regulatory body

Sector Confusion: Don't mix up CERC (electricity) with PNGRB (petroleum) — both have energy connections

Common Error: RBI is not typically called a 'regulatory body' in this context — it's the central bank

APTEL Appellate Mechanism

Indian Economy Appellate Tribunals for Electricity Appeals against the decisions of PNGRB

APTEL: Shared Appellate Body for Energy Sectors

Must know

APTEL handles appeals from both electricity and petroleum regulators

Established under Electricity Act 2003, expanded scope to include petroleum disputes

Good to know

Quasi-judicial body with technical and judicial members

Why Shared Appellate Body

APTEL (Appellate Tribunal for Electricity) was created for electricity disputes but later became the appellate forum for petroleum matters too. This reflects the interconnected nature of energy sectors and avoids duplication of specialized tribunals.

APTEL Jurisdiction

Regulator

Types of Appeals

Common Issues

CERC (Electricity)

Tariff orders, licensing decisions

Power purchase agreements, grid connectivity

State Electricity Boards

State regulator orders

Distribution tariffs, renewable energy

PNGRB (Petroleum)

Authorization disputes, tariff matters

Pipeline access, city gas distribution

Joint Electricity Regulatory Commission

Multi-state electricity issues

Inter-state transmission disputes

Question Connection

Statement 3 was correct because APTEL serves as the common appellate body for energy sector disputes

This shared mechanism prevents forum shopping and ensures consistent energy sector jurisprudence

Exam traps

Name Confusion: It's Appellate Tribunal for Electricity, but handles petroleum appeals too

Jurisdiction Error: APTEL doesn't handle coal disputes — those go to different forums

Level Mistake: Appeals from APTEL go to Supreme Court, not High Courts