The Hindu : `Centre's double standards on CNG supply exposed'

Online edition of India's National Newspaper
Wednesday, Apr 10, 2002

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`Centre's double standards on CNG supply exposed'

By Our Legal Correspondent

NEW DELHI April 9. The Delhi Government feels that the Supreme Court in the `CNG case' has exposed the Centre's double standards with regard to the availability of CNG by pointing out that on the one hand it had cut the supply to Maruti Udyog Ltd and on the other, the supply to two big business houses had been increased.

On the basis of the facts and figures about the availability and supply of CNG, the court said "as of today no CNG is being imported. The indigenous produce is far in excess of what is supplied to the transport sector''.

The court, according to the Delhi Government, had also pointed out that it was only a small fraction of the CNG produced in India which was earmarked for non-industrial use and the rest of the quantity was allocated by the Centre to industries, including the power sector.

The court picked holes in the Centre's argument by observing that even during the pendency of these proceedings, it was represented that CNG was in short supply but at the same time the allocation of CNG to industries had been increased.

"Even when CNG was not being supplied to the Pragati Power Station in Delhi, as the same has not been commissioned, the CNG earmarked for the power unit, instead of being allocated to the transport sector, was diverted to the industries in the neighbourhood of Delhi'', the court said. The vast difference in the price of CNG per kg supplied to industries and the CNG supplied to a commercial vehicle owner had also been highlighted by the court, when it said while "industries get natural gas at Rs. 3.55 a kg, a commercial vehicle owner in Delhi has to pay Rs. 13.11 a kg, which is four times more than what the industry pays''.

Ridiculing the Centre's stand for cutting the CNG supply to MUL, the court said "why should the Government, which is proposing to disinvest its share in the MUL, take the action of cutting supply of CNG, which would result in increasing its expenses and decreasing its value''.

Pointing out that a major portion of the CNG was being supplied only to the industries, and that the Government and its undertakings got less than what it would realise from supplying CNG to the transport sector, the court said "such economics is baffling, to say the least''.

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