Reliance cites China model to break PSU monopoly
Reliance Industries Ltd (RIL), India's largest private firm, has asked the Government to end the monopoly in distribution of natural gas to households and automobiles on the lines of China.
By PTI |
NEW DELHI: Reliance Industries Ltd (RIL), India's largest private firm, has asked the Government to end the monopoly in distribution of natural gas to households and automobiles on the lines of China.
Countering claims that China provided a 30-year period of exclusivity for conveyance and marketing, RIL has submitted to Petroleum Ministry a letter from China Petroleum Pipeline Bureau that stated that China did not provide "exclusivity" in city gas distribution (CGD) projects and networks were open to third party access, official sources said.
China Petroleum Pipeline Bureau stated that "as per the Government regulation in China, only one operator is allowed to be the owner of infrastructure for city gas project. (However), third party access is allowed for selling their gas but a reasonable fee approved by government should be collected by the owner of the infrastructure."
Sources state oil firms and global energy majors British Gas and British Petroleum have sought monopoly in retailing of natural gas to households and automobiles, to ensure reasonable returns for operators.
They demanded marketing exclusivity for firms setting up CGD networks - that supply piped natural gas to households and commercial users and CNG to automobiles.
However, RIL, which plans to enter CGD business by 2008, and Planning Commission stated that no marketing exclusivity should be allowed in consumer interest.
Anil Ambani Group has also applied for licence to set up CGD network in Delhi and Mumbai, the cities which already boost of well-established CGD networks run by state-run GAIL.
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