Making cheaper gas

Published: Wednesday 30 June 1999

in an attempt to make compressed natural gas ( cng ) more affordable, the environment ministry has asked the finance ministry for a reduction in import duty on cng kits. Presently, there is an import duty of 70 per cent on the kits, forcing the car owners to shell out an additional Rs 30,000 to switch to this technology. "We are pursuing the matter with the finance and petroleum ministry for not only cng but also other cleaner fuels and hope to get a decision from them soon," said minister for environment and forests Suresh Prabhu.

In the light of the Supreme Court order on emission norms, the state-owned Indraprastha Gas Limited ( igl ) is going all out to get a reduction in custom duties while claiming it will meet the target of setting up 80 supply outlets by March next year, with an investment of around Rs 100 crore. The transport department has already submitted a proposal for waiver of sales tax on cng to the sales tax department, which is awaiting clearance.

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