Companies developing gas infra need to be adequately compensated: Gujarat Energy Minister

Our Bureau New Delhi | Updated on January 23, 2020

Gujarat has pitched for measures to compensate companies such as Gujarat Gas for the pipeline infrastructure that they develop to foster the natural gas ecosystem in a region.

Speaking at the national Conclave on ‘Emerging opportunities in natural gas sector’, Gujarat Energy Minister Saurabh Patel said there needs to be decentralised decision-making for giving clearances for developing gas infrastructure.

“We have done a lot of infrastructure but there are some suppliers who are providing Liquefied Natural Gas (LNG) through trucks in areas authorised to us. So they are trying to take the cream clients while we bear the burden of infrastructure. We are flagging this issue because Gujarat is not only supplying to cities... we are also supplying to villages, where we are not making money. So on one side we are giving to consumers even in villages, while some companies are working only for big clients and to make profits. I think that is not fair and is unjust to Government companies like us,” Patel said.

For example, Gujarat Gas works on the principle of connecting every town and every village. Unfortunately, the other CGDs (City Gas Distribution networks) that have been allotted eight districts in the State don't work on this principle, he added.

Calling for decentralised approach for giving nods, Patel said: “I think all authorities have to work jointly with the State government. Personally I feel that all Central Ministries such as Environment, Railway or National Highways should have a nodal officer in the State to give permissions. Only then it will be on a fast track mode. Otherwise, everything coming to Delhi or going to some regional or branch office will lead to delay.”

Published on January 23, 2020

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