VIJAYAWADA: Two Compressed Natural Gas (CNG) outlets that have begun functioning in the city last week have become centre of controversy, as they do not have licence from the district administration.

Owners of the outlets, who have been running petrol pumps for decades, had taken permission from the administration only to sell petrol and diesel, but not CNG. While the officials claim that a separate licence is required to set up CNG outlets, the dealers state they do not know whether the licence is mandatory.

The issue came to light when officials of the Fire Services Department inspected the outlets two days ago. Possessing Form `B' licence from district administration is a must for those who are selling inflammable and explosive materials.

No-objection certificate

District Collector issues the licence following submission of a no-objection certificate (NOC) from the Fire Services Department. The Andhra Pradesh Fire Services Act has conferred powers on fire officers to inspect godowns of explosive materials and outlets selling inflammable materials.

Divisional fire officer D. Murali Mohan inspected the two outlets located at Ramavarappadu and Bhavanipuram recently and submitted his report to district Collector Navin Mittal stating that the outlets did not have licence from the district administration. He has recommended seizure of the outlets.

"The two dealers obtained licence only to sell petrol and diesel, but not to do the CNG business," Mr. Mohan says.

The Collector ordered an inquiry into the issue and sought a detailed report. District supplies officer B. Veerabhadra Rao has been asked to conduct the inquiry. "Traders dealing with inflammable and explosive materials must posses the Form `B' and the explosives licence. In this particular case, the two dealers have to apply for a fresh Form `B' as they are selling CNG," says Mr. Rao.

The dealers, however, argue that obtaining licence from the district administration is not mandatory, as they had obtained a licence from the explosives department. "Officials from the office of Chief Controller of Explosives (CCOE) in Nagapur have inspected the stations and accorded licence to install CNG equipment," says B. Chandrasekhar Rao of Sri Srinivasa Service Station in Ramavarappadu.

Officials of Bhagyanagar Gas Limited (BGL), one of the promoters of the CNG in the city, too say they have not taken any permission from local authorities during the installation of CNG stations in Mumbai and New Delhi. When the CCOE sanctioned permission to the outlets, where is the need for applying for permission from local authorities, asks an official of the BGL. He, however, says they will apply for licence, if it is mandatory.

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