Gujarat govt plans sops to push CNG Act

With plans afoot to provide compressed natural gas (CNG) to vehicles in Gujarat as fuel, the government of Gujarat has prepared a draft for its proposed CNG Act, likely to be tabled in the state assembly soon.

Named 'The Gujarat Motor Vehicles (Use of Fuel) Regulation Bill, 2003', the draft will be discussed at various levels before it is tabled in the Gujarat Legislative Assembly.

While the draft Bill provides for a comprehensive account of proposed rules and regulations guiding the use of CNG-run vehicles, the main feature of the bill is concessions to be given to owners of taxis and autorickshaws from the date of commencement of the Act.

The rate of sales tax on purchase of new vehicles based on CNG is proposed to be reduced to four per cent.

More importantly, no octroi will be levied on CNG-run vehicles and road tax will be levied at half the rate as applicable to diesel vehicles.

The sales tax may be lowered by a notification that can be issued under section 49 of the Gujarat Sales Tax Act.

Octroi may be exempted either by the state government or the local body like a municipal corporation and road tax can be reduced only by the state government under section 13 of the Bombay Motor Vehicles Tax Act 1958.

The government of Gujarat, in a bid to put into place a policy network for CNG distribution and usage, had on Wednesday decided to constitute a working group comprising representatives of various departments for finalising the proposed CNG Act.

The Act, which is expected to be tabled before the state Assembly during the last quarter of the current fiscal year, will be the first such Act enacted by a state government in the country.

It has been decided that the working group will have representatives from all the stake-holders like CNG transporters, distribution agencies, conversion kit suppliers and automobile manufacturers.

Based on the group's feedback, the state government will give the final touches to the Bill.

Significantly, although the state capital Gandhinagar was identified as the 'Greenest Capital' in the world by an international organisation, Gujarat's business capital, Ahmedabad, has the dubious distinction of being one of the worst polluted cities in the country.

"Gujarat is likely to be the first state to implement the CNG Act proactively. We have issued no-objection certificates (NoCs) to the private and also state-run companies for setting up distribution of CNG network in various cities," said D J Pandian, managing director of the Gujarat State Petroleum Corporation Ltd (GSPCL), the nodal agency for the sector.

Private sector companies like the Adani Group and Gujarat Gas Company Ltd have already been awarded distribution rights in some cities of Gujarat, while government enterprises like the Gas Authority of India Ltd (GAIL) and Hindustan Petroleum Corporation Ltd (HPCL) have been given rights to operate in some other cities of the state.

Earlier, the Gujarat government had invited authorised suppliers of CNG conversion kits to register themselves with GSPCL.

Named 'Operation CNG', GSPCL will oversee the process of companies setting up centres in all cities of Gujarat, where vehicle owners can get CNG conversion kits fitted on to their vehicles.

With over one lakh vehicles, mainly public transport vehicles like buses and autorickshaws, due for conversion to CNG, the minimum requirement of CNG kits in the initial phase will exceed one lakh.

GSPCL, in a bid to ensure that quality kits are provided, has asked all suppliers to register themselves with GSPCL in a month.