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Wednesday, August 22, 2001

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CM rules out sales tax on CNG

By Our Staff Reporter

NEW DELHI, AUG. 21.

While the Delhi Chief Minister, Ms. Sheila Dikshit, has ruled out imposition of sales tax on eco-friendly CNG for the present, the Union Petroleum Minister, Mr. Ram Naik, has expressed fears that it would not be possible to supply the green fuel to more CNG vehicles than those already registered, including the ones which have filed affidavits in the Supreme Court.

``The Indraprastha Gas Limited (IGL) is in a position to supply CNG fuel to only about 60,000 to 70,000 vehicles in the coming months. Beyond this, it would not be possible to meet any additional demand,'' Mr. Naik told Ms. Dikshit during their hour- long meeting. Ms. Dikshit was accompanied by the Transport Minister, Mr. Parvez Hashmi, the Chief Secretary, Mr.P.S. Bhatnagar, and the Transport Commissioner, Ms. Sindhushree Khullar.

During the meeting, the Union Minister threw enough indications that any further registration of CNG vehicles would complicate matters and create chaos on the roads. The initiative for the meeting has come from Ms. Dikshit to ensure that CNG vehicle owners do not suffer and the funds invested for this purpose do not go waste. The Centre has filed an affidavit before the court demanding a complete ban on registration of any further CNG vehicles in the Capital.

The Chief Minister sought an assurance from Mr. Naik that all CNG vehicles -- three-wheelers, taxis and buses -- registered till March 31 should get proper CNG supply, as Rs. 1.500 crores of private and public funds had been invested in these vehicles. Mr.Naik said the problem of long queues outside CNG stations is expected to vanish after the September 30 deadline as the IGL would instal 19 imported compressors at its stations. Of this, five have already been installed. The number of filling stations would also go up from the present 72 to 87.

The Chief Minister, who had met Mr. Naik three months ago, felt that the IGL and the Union Petroleum Ministry should present the true facts before the Supreme Court. She said on earlier occasions, the IGL and Petroleum Ministry had not given the correct facts which had led to the present CNG mess. ``We should coordinate whatever should be told to the ``amicus curaie'' to remove that impression that the Delhi Government and Centre had divergent views on the issue. For this, the Transport Commissioner, Ms. Sindhushree Khullar and the Joint Secretary, in the Petroleum Ministry would coordinate the developments, Ms. Dikshit added.

At the same time, she reminded Mr. Naik that at the last meeting, she had stressed the need to put in place the safety norms for CNG vehicles but no such thing had taken place. Things had not moved despite an assurance by Mr. Naik that he would take up the matter with the Surface Transport Minister, Mr. B.C. Khandoori. Ms. Dikshit felt that it was important to put in place the safety norms to remove any fear or panic from the minds of the people.

Mr. Naik is understood to have urged Mr. Dikshit to impress upon her party leaders to exercise restraint on issuing provocative statements regarding the CNG issue. The Chief Minister made it clear that the provocation had come from the BJP side and the former Chief Minister, Mr. Madan Lal Khurana, was even leading an agitation, blaming the Delhi Government for the mess. She impressed upon Mr. Naik to first restrain his own partymen.

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