Mahanagar not to up gas rates, offers 5% discount

Mahanagar Gas (MGL), a joint venture of GAIL India, British Gas and the government of Maharashtra, has decided not to increase prices of piped natural gas in 2004.

The company is also offering a special 5 per cent quantity discount to every piped gas customer with a monthly billing in excess of Rs 100 with effect from February 1, till the end of 2004.

MGL has also introduced a slew of initiatives for its customers. In a media release, the company said: "Further to the recommendations of the Vijay Raghavan committee, MGL will charge a single one-time connection fee of Rs 5,000 per PNG household against Rs 6,000 that was being charged." MGL has also offered a phasewise break-up of fee payment "" Rs 500 for registration, Rs 2,000 when the work starts and the remaining Rs 2,500 on completion of the connection.

In 2002, the petroleum ministry formed a committee to resolve an ongoing tussle between MGL, the sole supplier of gas in Mumbai, and several consumer associations on the issue of gas prices. A high level panel under the chairmanship of Vijay Raghavan, joint secretary (gas), ministry of petroleum, was appointed to study the issues related to MGL's differential price structure.