Biz LPG carrot for states to switch to PNG

NEW DELHI: Govt on Wednesday proposed increasing the allocation of commercial LPG cylinders to 30% of average requirement for states that encourage a switch to piped natural gas .The “incentive” for states indicates there has been some switch by domestic consumers to piped gas, freeing some capacity that can be utilised by restaurants and other commercial users, although the overall LPG situation was described as “worrisome”. Sujata Sharma, joint secretary in the petroleum ministry, said domestic production of LPG was ramped up by 40% on Tuesday.Following complaints from city gas distribution companies about high digging charges and lease rent levied by local bodies for laying gas pipelines, petroleum secretary Neeraj Mittal wrote to states urging them to relax norms. Mittal said against the target of 12.6 crore, only 1.6 crore PNG connections were functional.