Guj HC issues contempt notice to Union govt over APM gas allocation

Gujarat High Court has issued contempt notice to the Union government for its alleged non-compliance of its earlier order to allocate natural gas to Ahmedabad city under APM (administered price mechanism) price which is at present applicable to cities like Delhi and Mumbai.

A division bench of Chief Justice Bhaskhar Bhattacharya and Justice J B Pardiwala while issuing notice also asked the Union government why contempt proceedings should not be initiated against them for not complying to High Court order. They have further directed the Central government to file an affidavit explaining what action has been taken on the Court's order.

 

The notice was issued while hearing a contempt petition filed by NGO Dhrangadhra Prakrutik Mandal on whose public interest litigation (PIL) the High Court in July had directed the Central government to allocate natural gas to Ahmedabad city under APM. The petition was filed on Wednesday seeking further direction for the Union government on the grounds that it had not commenced supply of APM gas to Ahmedabad as per court order.

The Compressed Natual Gas (CNG) is available in Ahmedabad at Rs 53 per kg, while it is priced at Rs 38.35 per kg in Delhi.

APM is applicable to gas produced from fields given to ONGC and OIL (Oil India Ltd) on nomination basis. The gas is allocated only to a select category of consumers belonging primarily to the power, fertilizers and city gas distribution (CGD) business.

In its July 25 order the Court directed government of India to allot natural gas for domestic and vehicular usage at the same rate to the city of Ahmedabad at which the same is supplied to Delhi and Mumbai, to enforce the right of equality.

The court had held with regard to APM gas allocation that "the policy adopted by the Union of India is not strictly in conformity with the directions of the Supreme Court of India, and the Union of India has violated such norms."

"We are also convinced that the respondent no.1 (Union of India) has not only discriminated between CGDs promoted by the Central PSUs and other CGDs but also among Gujarat based CGDs. For instance, the respondent no.1 in paragraph -15 of its affidavit-in-reply has submitted that allocation of 2 Lac MMSCMD gas from KG D6 has been made to Adani Gas Limited. However, even though gas has been allotted to Adani Gas Limited from KG D6, the other CGDs, e.g. GSPC Gas Company Ltd. and Charotar Gas Ltd. were denied the same though they also could have been allocated gas on the same principle," the court had observed.

In addition the Court had directed the state government to make use of natural gas compulsory for all vehicle in Gujarat. The state government was asked to issue notification in this regard within two months and ensure implementation of the court order in a year's time.

The original PIL, which was filed in May 2011 had sought HC direction to the Centre to prioritize and diversify the unutilised natural gas from non-priority sector to the City Gas Distribution (CGD) for their domestic and vehicular usage, as directed by the Supreme Court in one of the cases to reduce the pollution level and cost of living.

It had also sought direction to the state government to take appropriate steps to reduce air pollution by converting the private and public vehicles from petrol and diesel to natural gas.

The PIL contended that if the Centre allocates even 5 per cent of APM gas to CGD for domestic customers, it will benefit 14 million households and if equal quantity is allocated for CNG purpose, 2.8 million autos or cars can be converted to CNG covering 56 medium sized cities with five lakh vehicles each.