16th April, 2003
Ministry of Petroleum & natural Gas  


RAM NAIK DISCUSSES MUMBAI CITY GAS DISTRIBUTION ISSUES WITH MAHARASHTRA CHIEF MINISTER


Shri Ram Naik, Minister of Petroleum & natural Gas met Shri Sushil Kumar Shinde, Chief Minister of Maharashtra at Mumbai today. The Chief Minister agreed to the request of Shri Ram Naik for permission to Mahanagar Gas Ltd (MGL) to resume laying of gas pipelines in Mumbai. The issues of fiscal concession by the State Government for 5% Ethanol blended supply and the implementation of the recommendations of the Committee on Pricing Structure for various categories of gas consumers in Mumbai, were also raised by Sri Naik. The Chief Minister agreed to consider the requests positively.

MGL has sought the permission to commission sixteen CNG outlets by June 2003. These outlets are ready for commissioning. On the basis of the enquiry into the fire incident in gas pipeline of MGL, the permission for laying pipelines had been suspended through a Stay Order by the Government recently. In view of the Mumbai High Court’s Order, MGL is to establish the infrastructure for CNG supply quickly. The Chief Minister also agreed to grant permission to MGL to carry out corrective measures for safety enhancement on the existing pipelines as per the Technical Committee’s findings. Further he directed that permission be given to MGL for installing sectionalising valves in about 300 places as a safety enhancement measure. For laying of steel pipeline the Chief Minister directed that proposals of MGL may be immediately cleared.

On the request of Shri Ram Naik the Chief Minister also ordered that proposals relating to handing over of seven plots out of seventeen identified by MGL may be immediately processed for establishing more CNG outlets.

The Chief Minister also agreed with Shri Naik that based on the suggested pricing structure for various categories of gas consumers in Mumbai, State Government should reconsider the recommendations positively in the interest of the consumer. This will have the benefit of reduction in prices to the consumers.

Shri Ram Naik pointing out the need for the development of the sugar industry and in particular the interest of the sugarcane farmers of the State, raised the issue of the waiver of Sales Tax on ethanol used for blending in petrol, waiver of Export fee of Rs.2000 per KL, State Excise Administration Fee of Rs.300 per KL, simplification of the procedure relating to PA-2 and PA-5 licenses and other Excise procedures. The issue of Storage License Fee waiver for the oil companies for the ethanol used for blending was also raised by the Minister.

Maharashtra Chief Minister agreed to consider all the requests of the Minister of Petroleum and Natural Gas relating to ethanol used for blending with petrol.

The meeting was attended by the Maharashtra Minister of State of Urban Development Shri Sunil Tatkare and Minister of State for Environment and Industry Shri Rajesh Tope, senior Secretaries and officials of Government of Maharashtra and Municipal Commissioner. Senior officials of the oil industry and of the Ministry of Petroleum and Natural Gas also participated in the meeting.