The Vadodara Municipal Corporation (VMC) has promised city dwellers the cheapest cooking gas in India, after it signed an agreement with state-owned transporter GAIL India for a gas project in the city.
The civic body has been assured by GAIL that it will provide gas to the city at the lowest rates, after the agreement was signed in New Delhi on Monday.
Municipal Commissioner M K Das said, ''We will continue to enjoy the distinction of getting gas at the cheapest rates. GAIL India Ltd has agreed to provide us gas at the most competitive rates.''
Senior VMC officials recently met GAIL functionaries, including chairman B C Tripathi, in Delhi to formalise issues regarding the joint venture.
VMC was the first civic body in the country to provide piped gas supply. After the formation of the JV the network in the city will be increased and new CNG gas stations will also come up.
It is reported that GAIL is looking to replicate the Vadodara model in other states as well.
GAIL has already completed most of the formalities in the project. The asset valuation will be doe through a valuation firm and it would be taking another couple of months to complete.
Being the first municipal corporation in India to have its own PNG network, VMC has so far enjoyed the advantage of getting natural gas under the administered price mechanism (APM).