Regulator warns city gas companies against delaying submisison of performance bond guarantees
New Delhi: The petroleum and natural gas regulator has warned that it will encash bank guarantees and terminate contracts of city gas distributors if they fail to submit annual performance bond guarantees (PBG) on time.
A performance bond is a financial guarantee and is required for grant of authorization to an entity that wins a project to set up and operate piped natural gas (PNG) and compressed natural gas (CNG) networks.
