Panel to resolve tussle between Mahanagar Gas, consumers

Praveen Chandran
13 November 2002

Mumbai: The petroleum ministry has formed a committee to resolve the ongoing tussle between Mahanagar Gas (MGL), the sole supplier of gas in Mumbai, and several consumer associations on the issue of gas prices.

Union Petroleum Minister Ram Naik has informed the consumer associations that the government will review the overall natural gas and compressed gas supply scenario in Mumbai. He has appointed a high level committee under the chairmanship of Vijay Raghavan, joint secretary (gas), ministry of petroleum, to study the issues related to MGL's differential price structure.

The government has asked the committee to submit its recommendations regarding the prices for compressed natural gas (CNG) for all sectors, particularly for industry and domestic consumers, within 15 days, says Naik.

“Following this, MGL will set up a mechanism for redressal of complaints and within a month thereafter a technical committee under the chairmanship of joint secretary (gas) will submit a final report on the pricing structure to be followed,“ he adds.

Various consumer associations, such as the Forum of Natural Gas Industrial Consumers (FNGIC), Mumbai Grahak Panchayat, Mumbai Taxi Association, Mumbai Autorikshawmen's Union, have been alleging that MGL's pricing policy is discriminatory.

FNGIC, which is the body of industrialists and business houses like Mahindra & Mahindra, Larsen & Toubro, Parle Biscuits, Special Steels, Godrej, Haldyn Glass Works and Vitrum Glass Works, says Oil and Natural Gas Corporation has been supplying natural gas to Gas Authority of India for Rs 2,100 per 1,000 cubic meters of gas and Gas Authority of India (GAIL) is supplying the same units of gas to MGL for Rs 2,850 with a transportation cost of Rs 410 and sales tax.