IGL expansion plans put on hold

In a setback to India's efforts to set up an environment-friendly extensive transport system before the 2010 Commonwealth Games, the oil regulator has asked Indraprastha Gas Ltd, the CNG retailer in the national capital, to stop all its expansion plans.

The Petroleum and Natural Gas Regulatory Board was not satisfied with the 10-year-old government letters and notifications that led to the formation of IGL and demanded specific authorisation letter for the start of a city gas distribution work in the national capital, sources said.

The intent behind creating IGL was to provide clean fuel to replace polluting diesel in automobiles and piped gas to households. As there was no formal authorisation letter except the array of letters and Supreme Court judgement, the regulator asked IGL to stop all expansion work.

When contacted, IGL Managing Director Om Narayan confirmed that his company had stopped all expansion plans in Delhi and the adjoining Noida.

The company had planned to increase the number of CNG dispensing stations to 200 by 2010 from 166 now, and was expecting to supply the gas to 300,000 vehicles and the same number of homes. IGL is the nation's biggest gas distributor, owned by the state-run GAIL and Bharat Petroleum.