No bias against Gujarat in gas distribution: Petroleum minister

The Gujarat Congress on Sunday held a press conference attended by the Union minister of state for petroleum RPN Singh to call the Gujarat’s government’s bluff on discrimination in gas distribution to the state.

Addressing media persons, Singh said that he was surprised by the news that the advertisements in local television channels (purportedly given by the Gujarat government) were accusing the Centre of being biased against Gujarat in gas distribution.

“In fact, Gujarat gets the maximum share of gas. In 2010-11 of the total 162.10 mmscmd of gas supplied, Gujarat got a whopping 63.25 mmscmd which comes to 40% of the total gas supplied,” said Singh. This is significantly higher than that given to Maharashtra (25.59 mmscmd) and Delhi (6.77 mmscmd). "There has not been any cut in gas allocation to Gujarat," he said.

When pointed out that domestic gas was not allocated for city gas distribution sector in the state, he put the blame on the state government saying it could reduce the supplies to industries and give priority to domestic and vehicular consumers.

GPCC president Arjun Modhwadia said that CNG was expensive in the state due to the exorbitant VAT rates here. “Across India, VAT on CNG is in 0-4% range while for Gujarat it is 15%. And then the chief minister whines about high gas prices,” said Modhwadia.

Leader of Opposition Shaktisinh Gohil said that the government was more worried about Adani getting expensive gas rather than the common man getting it at a high price.

“Everywhere else, the gas procured under the administrative price mechanism (APM) is first given to domestic users — households and vehicles — and then to small industries. Here it is first offered to big industrial houses like Adani and later to everyone else,” said Gohil.

It should be noted that there are seven CGD companies operational in the state, but none of them is given any domestic gas, forcing them to meet their requirements through the costlier Re-gasified Liquefied Natural Gas (R-LNG), commonly known as imported gas. This is the main reason why gas is significantly costlier in Gujarat than in other parts of the country, said Singh.

Sabarmati Gas Limited, which is engaged in CGD business in Gandhinagar, Mehsana and Sabarkantha, is the only CGD operator in the state that was getting domestic gas. However, the supply of 77,493 standard cubic metre (scm) per day of gas was stopped last year due to decline in domestic gas output.

The other CGDs in the state, such as GSPC Gas and Adani Gas have been demanding domestic gas allocation from long.