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Tuesday, August 29, 2000

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Govt may review LPG control order

Our Bureau

MUMBAI, Aug. 28

THE Union Government may review provisions of the LPG (Regulation of Supply and Distribution) Order, 2000, said Mr. E. Ponnuswamy, Union Minister of State for Petroleum and Natural Gas, here on Monday.

Mr. Ponnuswamy said the Government was considering review of certain provisions of the Order after receiving complaints from LPG distributors. He was speaking at the National Convention of the All India LPG Distributors' Federation (AILDF).

LPG distributors had submitted a memorandum this July, requesting the Government to reconsider certain provisions. The Order prohibits activities such as forced sale of hot plates and stoves, recovery of unauthorised charges from applicants, supply of pi lfered cylinders, possession of spurious LPG, manipulation of records, among others.

``Distributors can be arrested for the fault of anyone down the supply chain. This is unfair,'' said Mr. Pratap Doshi, President, AILDF.

Distributors are allowed a fixed commission of Rs. 13.83 per cylinder throughout the country. The federation has alleged that since fixed and operating costs vary throughout the country, distributors in high cost areas lose out.

``LPG commission should be bifurcated and dealers should be allowed to charge separately for home delivery and shop sales,'' Mr. Doshi said.

The distributors have asked that LPG dealership be considered as a ``normal commercial activity'' and not as a State activity which needs ``unwarranted controls''. The distributors have also asked that LPG be exempted from the Essential Commodities Act.

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