Centre says 'no' to Andhra's request for diesel supplies at retail prices for Amaravati

Union petroleum secretary Neeraj Mittal pointed out that Andhra Pradesh Civil Supplies Commissioner K Kanna Babus directions to Oil Marketing Companies OMCs are not in conformity with the provisions of the Petroleum Rules, 2003 and several other regulations. Mittal requested Chief Secretary Sai Prasad to withdraw the Civil Supplies Department communique to OMCs to supply nearly 28,000 kilo litres of diesel at retail price for greenfield capital Amaravati works.

The Centre has refused to entertain a request from Andhra Pradesh government to supply diesel at retail prices to be used for the construction of greenfield capital Amaravati. Union petroleum secretary Neeraj Mittal pointed out that Andhra Pradesh Civil Supplies Commissioner K Kanna Babu's directions to Oil Marketing Companies (OMCs) are not in conformity with the provisions of the Petroleum Rules, 2003 and several other regulations. On April 24, Babu wrote to the heads of all OMCs and the Andhra Pradesh State Level Coordinator (SLC) of OMCs to facilitate the arrangement and allocation of adequate diesel from nearby petrol bunks for the construction of the greenfield capital city at retail prices. Despite repeated attempts, Andhra Pradesh Chief Secretary G Sai Prasad and Kanna Babu could not be reached for a comment. However, ruling TDP spokesperson N Vijay observed that Chief Minister N Chandrababu Naidu will try to ''convince'' the Centre to resolve the issue if required while Union Ministers representing the party will also make concerted efforts as Amaravati remains the ''lifeline'' of Andhra Pradesh. ''The capital project is progressing on a fast-track mode and any disruption, particularly in fuel supply, could affect timelines. Both the state and the Centre have a shared responsibility to ensure uninterrupted development,'' Vijay told PTI. Mittal requested Chief Secretary Sai Prasad to withdraw the Civil Supplies Department communique to OMCs to supply nearly 28,000 kilo litres of diesel at retail price for greenfield capital Amaravati works. He emphasised that petroleum products at retail outlets are permitted to be dispensed only to fuel tanks of vehicles or into approved containers, subject to a maximum limit of 200 litres. He highlighted that retail outlets are not licensed for bulk supply operations, especially at a time when the southern state is embattled with a severe shortage of petrol and diesel. ''I would request you to withdraw the said communications which are inconsistent with extant instructions/regulations. I would appreciate your kind intervention in ensuring adherence to the extant regulatory framework in the interest of safety and uniformity in fuel distribution across the country practices,'' said Mittal in his recent letter to the chief secretary. In his letter to the OMCs, the civil supplies commissioner underscored that Amaravati is a flagship development programme for the ''growth and transformation of the state of Andhra Pradesh''. As per the consolidated assessment, he said the remaining days of April require 4,239 kilo litres (KL) of diesel, followed by May (8,880 KL), June (7,528 KL) and July (6,920 KL), totalling up to 27,566 KL. However, Mittal observed that OMCs have well-established direct sales mechanisms specifically designed to cater to bulk consumers, including infrastructure and construction projects. ''Any diversion of bulk fuel sourcing to ROs (retail outlets) not only contravenes statutory provisions but also raises safety, licensing, and operational concerns,'' the official added. Further, he observed that the door delivery of diesel (DDO) scheme notified by the Ministry of Petroleum and Natural Gas provides an appropriate and compliant mechanism for supplying fuel to stationary equipment through Petroleum and Explosives Safety Organisation (PESO) approved bowsers. According to Mittal, the civil supplies commissioner's directions may also lead to situations of non-compliance with the provisions of the Motor Spirit and High Speed Diesel (Regulations of Supply, Distribution and Prevention of Malpractices) Order, 2005 issued under the Essential Commodities Act, 1955. Further, he highlighted that the commissioner's directions may compel deviation of fuel from the prescribed modes of authorised sale and distribution. Amid a widespread fuel crisis in the southern state, chief minister Naidu had recently ''warned'' OMCs that if they ''deliberately create inconvenience for the public or the government, permissions granted to them may be reconsidered''. The CM asserted that irresponsible decisions affecting essential supplies would not be tolerated.