Tripura government has sought the intervention of Union minister for Petroleum and Natural gas, M Veerappa Moily for continuing the supply of natural gas to the small scale industries in the state in Administered Price Mechanism (APM) rate of natural gas.
Industries and Commerce Minister Jitendra Chowdhury, in a letter to the union minister on Friday,expressed fear that small scale industries in the state would be closed unless Oil & Natural Gas Corporation (ONGC) supply natural gas from their nomination blocks at APM price,which is substantially lesser than the price sold at commercial rates.
"In Tripura, a company called Tripura Natural Gas Company Limited (TNGC), was formed in late 1980s, in joint venture with Government of Assam, to take up the business of gas distribution to small, PNG, CNG, commercial and industrial consumers", he said.
Since the company was not making much head way, it was decided to rope in GAIL into the project and after extensive consultations, a revised Joint Venture Agreement was signed, giving majority stake to GAIL-with both Tripura and Assam Governments reducing themselves to minority shareholders.
"TNGC has brought to our notice that ONGC is treating TNGC itself as an 'end consumer' and ONGC is insisting that all the commercial and industrial consumers served by TNGC shall have to pay market rates", he wrote.
