CNG quota restoration for all unlikely

The Supreme Court has ruled that industries, which do not have firm allocations of compressed natural gas (CNG) but only tentative allotments or "fallback", cannot claim to get the gas as a matter of right.

A large number of industries around Delhi will thus be deprived of the clean fuel, which is given on a priority basis to the transport and power sectors, and then to public sector undertakings.

These industries intervened in petitions moved by Essar Steel Ltd and Reliance Industries, which complained that their firm allotments had been cut by one-third to half. They alleged discrimination.

According to them, if the supply is to be cut, it should be done pro rata and not arbitrarily. There was discrimination among the private companies, according to the chart submitted to the Supreme Court Bench comprising Justice YK Sabharwal and Justice Ashok Bhan.

The dispute arose some time ago, when the Supreme Court ordered the conversion of fuel for the city buses from diesel to CNG. Its order gave priority to the transport sector, followed by the power and public sector undertakings.

The industries first moved the Delhi High Court alleging drastic cuts in their allotments and discrimination.

The government agreed before the high court to consider the suggestion for pro rata allotment of gas. The Essar and Reliance cases were later transferred from the high court to the Supreme Court. They complained that the government had not kept its promise.

The government submitted before the Supreme Court that there was a shortage of the fuel and with more cities adopting the CNG fuel, it would not be possible to satisfy all the industries.

It said the apex court had observed that two firms were "favoured" in the allotment of gas. Therefore, their allotments were reduced.

The judges were not convinced and warned that either pro rata allotments should be made to firm allottees or they would strike down allotments altogether. They gave time till October 13 to take the appropriate decision.