The Hindu Business Line : Govt plans to impose cess on natural gas

NEW DELHI: The government is mulling levy of small cess on natural gas to fund construction of national gas highway network even as it plans to extend LPG reach to rural areas and launch smart cards for kerosene.

The Petroleum Minister, Mr Murli Deora, discussed with CEOs of state-run firms the idea of levy of $0.20 per million British thermal unit as cess on natural gas to mop up Rs 3,000 crore annually for laying down the gas pipeline network.

The brainstorming session called to chalk out the 100-day plan for the new government also decided on launching a new Scheme of Rural LPG Distributor (Gramin LPG Vitrak), Petroleum Secretary R S Pandey said.

At present, LPG distributorship is being set up in towns and villages having a population of 5,000 and the potential of 2,500 refills a month. The Gramin Vitrak scheme would be launched at locations having potential of up to 1,000 refills a month.

Mr Pandey said the government will also launch a Smart Card scheme for kerosene on pilot basis in cities like Pune, Bangalore and Hyderabad. The smart cards would be for distribution of subsidised kerosene to only intended beneficiaries and check its di version. - PTI

Prev: MMTC invites bids for edible oil imports
Next: MF industry's assets cross Rs six lakh cr mark in May

Business Line | NUS Index |

Copyright copy; 2009, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line