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Bhagyanagar Gas’s city gas stations plan comes to nought
Council says no to 50% discount on land lease price saying its a commercial outfit
The plan of Bhagyanagar Gas Limited (BGL) – a joint venture between Gail (India) Limited and Hindustan Petroleum Corporation Ltd (HPCL) – to reach out to consumers in prime areas of the city by setting up four Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) stations in the city has come back to square one.
Thanks to the Municipal Council, which has unanimously denied leasing out the desired land to BGL at discounted price citing that BGLwas no less than a commercial establishment.
Into the city
BGL which has been operating CNG stations on the outskirts of the city, particularly around Vidyadharapuram since 2005. Now, for the first time it wanted to enter areas in the city’s interiors to reach out to local consumers.
In a proposal that has been accepted by the civic chief, BGL sought 36 sq. yards of land each at four localities, including Bhavanipuram, RTC Colony, Labbipet (near M.G. Road) and Kandrika. The company wanted VMC (Vijayawada Municipal Corporation) to consider the fact that it is part of central government companies and spread of its units helps reduce air pollution in the city and sought the lands at 50% lesser cost.
Price bargaining fails
As per rules, VMC leases out at 10% of the market value of the particular land per year while BGL wanted it for 5% of the market value, that is, Rs. 2.77 lakh per year.
In the recent general body meeting, the Municipal Council, which was expected to ratify the civic body’s decision scrapped the proposal. In fact, the proposal was postponed twice by the Council since August last year.
Less pollution
“Having exclusive CNG stations in the city would benefit all the consumers and it will also encourage people to opt CNG variants of four-wheelers. Our prime focus was on the stations proposed at RTC Colony and Bhavanipuram which can serve a lot of consumers,” said G.A. Venkatesh, project head of BGL in the city. “The project has been dormant for long and with the latest development, all the doors are closed,” he added.
For a recourse, BGL has to wait for the new council to be formed and meet after the forthcoming municipal elections.
