Slashing fee for gas utility companies will be passed on to end user, says Minister M.B. Patil

Heavy Industries Minister M.B. Patil defends CGD policy changes, stating benefits will be passed on to end users.

Dismissing allegations of a “scam” after changes were brought in the City Gas Distribution (CGD) policy, Heavy Industries Minister M.B. Patil on Tuesday (February 4, 2025) said that the changes were, in fact, made at the insistence of the Union government, and benefits will be passed on to the end user.

“The Centre on three occasions had requested changes in the policy to enable smooth distribution in the CGD to achieve clean environment. The policy changes were in tune with these requests and other States too had brought in similar changes,” the Minister told Legislative Council.

Earlier, BJP member D.S. Arun said that the estimated annul loss to local bodies in Karnataka was about ₹5,100 crores due to changed CGD policy. “From a total fee of ₹1,957 per metre which translates to ₹19.57 lakh per kilometre, the policy has changed the charges to ₹1 per meter or ₹1,000 per kilometre.” He asked the reason for such a drastic cut in the fee and wanted to know if it was to benefit any of the eight gas utility companies operating in Karnataka.

“You accuse Centre of promoting Adani. Whom does this policy change benefit? The BJP Cabinet in State had rejected this policy change twice and Finance Department had also not concurred with it,” said Mr. Arun.

However, Mr. Patil said that the new changes cannot be construed as revenue loss since all the eight companies had been asked to pass on the benefit to the end user.

“The Finance Department has approved it,” he said. The Minister also cited examples of Andhra Pradesh, Telangana and Kerala where the fee is nil and States such as Uttar Pradesh and Rajasthan where the fee is ₹1 per metre like in Karnataka. The Minister also said that the UP charging ₹1 per meter was shown as among the best practices in the country.

The Petroleum and Natural Gas Regulatory Board (PNGRB) has chosen eight gas distribution companies to offer piped gas connections to home and set up CNG stations across 18 geographic areas in the State. Against a target of about 66 lakh connections, the State is lagging behind with a total of around 5.10 lakh connections. The CGD policy in November 2023 was brought to increase the connections in the State.