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LATEST NEWS UPDATES | Gujarat cities to get cheaper gas at Delhi, Mumbai rate

Gujarat cities to get cheaper gas at Delhi, Mumbai rate

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published Published on Oct 1, 2013   modified Modified on Oct 1, 2013
-The Times of India


AHMEDABAD: Gujarat's cities will get cheaper gas. The Supreme Court on Monday upheld a Gujarat high court order passed last year directing the Centre to supply gas to Ahmedabad at the price it supplies to Delhi and Mumbai.

This will have a direct impact on over two lakh vehicle owners including auto rickshaws in Ahmedabad alone where gas prices are way above Delhi and Mumbai.

At the same time, the state government will have to pass necessary laws to make it compulsory for all four wheelers registered in Gujarat to covert to natural gas.

The high court on July 25 last year asked the Centre to supply gas to Ahmedabad for domestic and vehicular use the way it supplies to two national metros. This was ordered "to enforce the right of equality", for the court felt that the masses in Gujarat were forced to pay more in an unjust manner.

The Centre had questioned this decision before SC, and a bench of Justice H L Dattu and Justice M I Iqbal dismissed the appeal on Monday and confirmed the HC decision.

In its order passed last year, the HC had given one year's time to the state government to make legislation thereby imposing stringent restrictions to reduce pollution by levels of emission to the minimum. By this time, the court had said that all vehicles registered in Gujarat would be converted to CNG. The court observed that running vehicles on gas would be to protect the lives of citizens.

In order to prevent wastage of gas, HC also suggested the state government to introduce a tax mechanism, or to charge higher rate, and it should import gas if need be. But it should supply gas at cheaper rate to owners of public vehicles, the court had observed. Also, fares of public transport should be fixed at reasonable rates so that the end benefit goes to the public.

Besides, HC had also ordered the Centre not to discriminate between CGDs (city gas distribution) that are promoted by central PSUs and other CGDs - either state-owned CGDs or private ones. The Centre will now have to supply GSPC, Adani and Charotar Gas from its administered price mechanism (APM) quota.


The Times of India, 1 October, 2013, http://timesofindia.indiatimes.com/india/Gujarat-cities-to-get-cheaper-gas-at-Delhi-Mumbai-rate/articleshow/23329488.cms


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