"A rebate
of Rs.22 per month and no increase in prices of domestic piped
gas upto March 2004 in Mumbai are the two important recommendations
made by the Vijayaraghavan Committee". The Committee on
City Gas Distribution in Mumbai submitted its report to Shri
Ram Naik, Minister of Petroleum & Natural Gas here today.
The Committee under the Chairmanship of Shri S. Vijayaraghavan,
Joint Secretary, Ministry of Petroleum & Natural Gas was
constituted by the Minister on the representation of various
consumer forums of Mumbai regarding pricing of gas and quality
of service by Mahanagar Gas Limited (MGL).
Shri Ram Naik had
met the representatives of consumer forums such as Mumbai Taxi
Association, Mumbai Taximan's Association, Mumbai Taxi Chalak
Malak Sena, Mumbai Autorickshawmen's Union, Maharashtra Rickshaw
Sena, Mumbai Grahak Panchayat & Forum of Natural Gas Industrial
Consumers, Mumbai on 11th Nov. 2002.
After receiving
the report, the Minister directed the senior officers of the
Ministry to seek comments from MGL, GAIL, British Gas and Govt.
of Maharashtra within ten days on the recommendations of the
Committee for expeditious implementation of the report. The
report is also being placed on the Ministry Website www.petroleum.nic.in.
The Ministry will take decision on the recommendations by the
end of this month.
The highlights
of the recommendations made by the Committee are as under: -
1. Committee's
recommendations are for the period up to 31st March 2004
2. For the industrial
and domestic sectors, the gas price may continue to be linked
to the price of the alternate fuels as at present.
3. For Residential
Sector
a) Rebate
of Rs. 22 for 15 years from monthly bills to be given.
b) There
will be no increase in price of gas till March 2004
even if LPG price increases.
c) In case
of decline in prices of LPG, the benefit to be passed
on to the consumers.
d) In future,
connection charge would be standardized at Rs. 5000
for all consumers (bulk or individual).
4. For Transport
Sector
a) More
CNG dispensing stations would be set up (Total 55 by
March 2003 and 80 by March 2004).
b) GAIL
and ONGC would regularly co-ordinate with MGL for ensuring
proper pressure at CNG stations and also have alternate
arrangements in case of failure of supply pipeline to
Mumbai.
c) MGL
to ensure proper service at all CNG stations.
d) All
customers to be given proper printed invoices.
5. For Industrial
Sector
a) Ceiling
of gas price at Rs. 6.80 / SCM before taxes (corresponding
to LSHS price of Rs. 8600/MT inclusive of State Surcharge
and Octroi and allowing 10% discount thereon) till March
2004.
b) This
would not only protect the consumers in periods of high
rise in LSHS prices, but would also ensure that for
LSHS price less than Rs. 8600/MT, existing practice
of 10% discount for gas would benefit the consumers.
6. For all sectors
a) A Proper
Grievance Redressal system , tailored to the specific
needs of each consumer segment, should be put in place
by MGL.
b) A code
of service standards to be devised by MGL and published.
7. For domestic,
industrial and commercial sectors, any increase in input gas
price during the period ending 31st March 2004 would not lead
to revision in prices
8. Since CNG price
is computed on 'cost plus' basis, any increase in gas price
/ taxes during the period ending 31st March 2004 would be pass
through to the consumer.
