IndianOil lifts freeze on issue of new LPG connections
Chennai   25-Aug-2008
<b>Distributors advised to clear waiting list of June and July</b> IndianOil has removed its freeze on issue of new domestic liquefied petroleum gas (LPG) connections and advised its distributors to clear the waiting list of June and July. A senior official of IndianOil said that orders to this effect were issued to Indane Area Offices a couple of days ago and once the waiting list for the two months is cleared, the connections would be available on demand. Sources among Indane distributors in the city confirmed that they received the instructions for release of new connections on Friday. IndianOil's decision comes close on the heels of a recent direction to the oil marketing companies from the Union Minister of Petroleum and Natural Gas Murli Deora. While Bharat Petroleum Corporation Ltd and Hindustan Petroleum Corporation Ltd were also part of the industry decision in mid-May, they had started issuing new connections subsequently. IndianOil, which has a major share in the LPG market of the State, with the other two companies, had resorted to the move in mid-May this year citing an equipment (cylinder) shortage and its inability to augment the inventory in the face of a cash crunch. With the available equipment, the company had then cleared the waiting list till May-end. On the demand for new LPG connections in Tamil Nadu, the official said that on an average the company issued about 30,000 connections every month. Noting that there had been some inflow of equipment recently, he said the company at the national level was also in the process of floating tenders for more equipment. However, the freeze on issue of double bottle connections (second cylinder) continues with the distributors saying that they were yet to receive instructions for the release. A decision on the issue of connections under free LPG connection scheme of the State Government in the current financial year is yet to be taken. The official said that the Union Ministry of Petroleum and Natural Gas has to take a separate decision in this regard.