The Telegraph
Tuesday , July 29 , 2014
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City gas boost

New Delhi, July 28: The government is all set to revamp the natural gas allocation policy, giving top priority to city gas distribution companies. This will come as a big boost to the expansion of piped natural gas to 300 cities and towns across the country, including Durgapur and Kharagpur in Bengal.

The committee of secretaries has approved the oil ministry’s proposal for changes in priority ranking for gas allocation with city gas getting the top priority. The proposal will now go to the cabinet committee on economic affairs for final approval.

At present, urea plants have the first right over domestic gas, followed by liquefied petroleum gas plants and power stations. City-gas distribution projects are ranked fourth.

The changes in gas allocation come after a directive from the Supreme Court, which upheld an order of the Gujarat high court.