India ties 10% extra commercial LPG allocation to state CGD reforms
→State energy departments must enact CGD measures to secure the +10% LPG allocation
Change
India's Ministry of Petroleum & Natural Gas has granted states and union territories an additional 10% commercial LPG allocation only if they implement specified City Gas Distribution (CGD) for forming state/district CGD committees, 2% for issuing deemed CGD permissions, 3% for introducing a dig-and-restore scheme, and 4% for cutting annual rental/lease charges.
Why it matters
States and union territories must process CGD permissions rapidly, including issuing deemed permissions for pending applications and approving new CGD permissions within 24 hours, to qualify for the extra allocation. States must also waive road-restoration and permission charges, relax working hours/seasons, appoint state nodal officers, and introduce dig-and-restore schemes as conditions for receiving the linked LPG uplift.
Implications
- — State energy departments and district CGD approval authorities must issue deemed permissions and approve new CGD applications within 24 hours — failure immediately disqualifies the state from the additional 10% commercial LPG allocation.
- — State municipal and public-works permitting departments and appointed state nodal officers must waive road-restoration/permission charges, relax working hours/seasons, and implement dig-and-restore schemes now — failure to implement these measures will forfeit their state's eligibility for the tied LPG supply increase.
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Source
View on Economic Times