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Politics heats up over gas allocation

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BS Reporter Mumbai/ Ahmedabad
Last Updated : Jan 25 2013 | 4:04 AM IST

BJP, Cong in verbal war; Guj minister promises 30% reduction in price if gas given under APM

The issue of allocation of natural gas to Ahmedabad under APM (administered price mechanism) has become a major political potboiler between the Narendra Modi-led government in Gujarat and Congress-led UPA.

Both have entered into a war of words, with the state government demanding implementation of a recent Gujarat High Court order for allocation of gas to Ahmedabad under APM, and the Central government claiming that Gujarat was already getting a lion's share of the gas produced in the country.

On Sunday Union Minister of State for Petrochemicals and Natural Gas, RPN Singh had refuted claims made by Gujarat government of discrimination over allocation and pricing of natural gas and claimed that Gujarat got the major portion of gas in the country. The minister had also claimed that the state government was misleading the people by giving out false information about the allocation of natural gas to Gujarat and also about the price that it was being given.

Reacting to Singh's statement on Monday senior BJP leader Arun Jaitley said, "The union minister's statement that Gujarat was getting the maximum share of natural gas in the country is nothing but half truth. And half truth is equivalent to complete falsehood." He claimed that its was an unwarranted statement made by the Union minister on an issue which is decided upon by an committee of Empowered Group of Ministers (EGoM). Jaitley firther explained that the EGoM allocated the gas based priority with fertiliser and power sector topping the list. "Our demand was specific to allocation of gas for domestic consumption. Why are those living in Ahmedabad being discriminated from those living in Mumbai and Delhi," he said, adding that Singh was misleading the people of Gujarat by giving selective figures. Jaitley took a dig at the Gujarat Congress saying that since it was not able to speak about the discrimination by Centre, they called in a union minister to speak on their behalf.

Gujarat minister of state for petrochemicals and energy Saurabh Patel targeted the Union government and claimed that the later was doing injustice to the state. He also vowed to reduce the price of natural gas under CGD (city gas distribution) by 30 per cent if Ahmedabad got gas under APM. "If Ahmedabad get natural gas at the same price as that of Mumbai and Delhi, I assure the people of Gujarat that price of gas (under CGD) would be reduced by 30 per cent," Patel said. He also demanded that the Central government comply with a recent Gujarat High Court verdict directing the former to supply gas to Ahmedabad under APM. A recent judgement by the Gujarat High Court had directed the Central government to allocate natural gas to Ahmedabad city under APM price which is at present applicable to cities like Delhi and Mumbai. Gujarat government had welcomed the HC order. Patel wanted an assurance from the Centre that it would not challenge the HC order in Supreme Court. Explaining the reason behind natural gas bein costlier in Gujarat Patel said that since the state was not getting domestic gas they had to import gas which resulted in higher price. On a query of reducing value added tax (VAT) on natural gas, Patel declined to comment.

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First Published: Aug 21 2012 | 12:21 AM IST

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