State to seek Rs 1,500 crore World Bank assistance

GSPC to prepare proposal for CNG conversion

With public transport vehicles due to be converted from petrol and diesel to the more eco-friendly compressed natural gas (CNG), the state is preparing a proposal seeking Rs 1,500 crore assistance from the World Bank. The Gujarat State Petroleum Corporation Ltd (GSPC) is preparing the report.

Meanwhile, the government of Gujarat has decided not to implement the Compressed Natural Gas (CNG) Act before putting into place the necessary infrastructure for easy availability of CNG in the state.

Natural gas is likely to be made available in the major cities of Gujarat by June 2004. Places for dispensing CNG for vehicles have already been identified in cities like Ahmedabad and Surat.

The state government has prepared a draft for its proposed CNG Act, and this will be tabled in the next assembly session, officials said on Sunday. The draft. 'Gujarat Motor Vehicles (Use of Fuel) Regulation Bill, 2003', is at present being discussed at various levels before being tabled in the state Legislative Assembly.

Over 7,000 Gujarat State Road Transport Corporation (GSRTC) buses, and around 1.30 lakh autorickshaws and other public transport vehicles are to be converted to CNG in the first phase. GSPC managing director D J Pandian said that the state government will seek a Rs 1,500 crore World Bank assistance for converting the state government public transport vehicles to CNG.

"A paper is being prepared and will be sent to the state government soon," he said on Sunday.

While the draft bill provides for a comprehensive account of proposed rules and regulations guiding the use of CNG-run vehicles, the main feature is the 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.

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

In a bid to ensure quality kits, GSPC, has asked all suppliers to register themselves with GSPC at the earliest.