Monday, January 27, 2014

[aaykarbhavan] Business standard news updates 28-1-2014



LPG portability scheme generates lukewarm response


BS REPORTER

New Delhi, 27 January

The LPG connection portability scheme — launched by the ministry of petroleum in October 2013 in 24 districts covering 13 states on the lines of number portability in telecom sector — does not have many takers.

According ministry officials, portability was availed by only a "few hundred customers or probably close to a thousand customers" till now. The scheme was first launched in Chandigarh in early 2013. " We are happy that the number of consumers who availed the scheme is very low. This shows that the efficiency level of companies and dealers are increased," said a senior ministry official.

Recently, the scheme was launched on a full- fledged all- India basis by expanding its coverage to over 480 districts and a population of over 82 million LPG consumers across the country. In order to facilitate LPG consumers to benefit from the portability scheme, oil marketing companies (OMCs) have more than 1,400 clusters of distributors in over 480 districts, with an average of almost four distributors per cluster, to choose from.

"The customer would be the king now. We are getting a lot of queries in this regard, especially after the national launch. This would make dealers more disciplined in their service," says Parminder Singh of Rupinder Gas Agency, Chandigarh.

According to Singh, facilities such as ' no transfer fee applicable' to this would make it more attractive to customers.

On the other hand, in case of intra- company portability request, the LPG consumer has to visit only the new distributor. A ministry official said, " For applications, till now, in most cases, dealers were able to hold back those who had applied for portability.

The ministry is happy with this development and hence, we had gone for a national launch. The success of this scheme lies in conferring the power with the consumer to be able to change the distributor and the oil company, which forces the distributor and oil company to perform, and not in a large number of portability requests." Apart from the cluster approach, pro- active electronic tracking of portability request is also in place to ensure consumers do not face any difficulty in moving to a distributor of their choice.

THE LPG STORY

|Portability as a pilot project was launched in Chandigarh in January 2013, on an intra- company basis |The scheme was extended in 24 cities in October on an inter- company basis |Under this scheme, LPG consumers have the choice to change their distributor within the cluster |Last week, the scheme was expanded to about 480 districts, covering 82 million LPG consumers |Oil marketing companies have more than 1,400 clusters, with an average of almost four distributors per cluster to choose from

Official says this shows efficiency of companies and dealers has improved

 

'We will probe the auditor's role in the NSEL scam'


Where has the investigation reached?

Our aim is to look into the money trail. We have frozen assets of 4,500 crore, 80 to 85 per cent of the amount involved in this case. It is a long- haul investigation and has many layers. This is going to take some time. We have filed one charge sheet against the five arrested and are also filing subsequent charge sheets.

How far has the brokers' investigation reached?

We have just started to look into the role of the brokers in this scam and the process is on. We have set up a separate team to look into their involvement. We are currently trying to see the extent to which the brokers were involved. We will also later start to look into the involvement of the auditor's role.

Who are the people likely to be held culpable for the crisis?

Depending on what we find through this investigation, legal consequences will follow. We are investigating the systematic failure in the operations of the NSEL and the reasons behind it.

Is there a repayment plan or schedule for the affected investors?

We have partly distributed as much as we can to small, needy investors. We hope to give the investors their money back as soon as possible.

Will we see more arrests?

Arrest is a decision which the investigating agency will take depending on the situation. It depends on the investigating officer.

How deep is the involvement of the promoters in this case?

FTIL directors have been mentioned in the first charge sheet and their role in the scam is still under the scanner.

When can we expect the next charge sheet?

Earlier we were bound to file the first charge sheet in 90 days of the first arrest, already done. We are currently working on the next charge sheet and dont have any

The Economic Offences Wing of the Mumbai police, investigating the 5,600- crore National Spot Exchange Limited ( NSEL) scam for the last few months, has seized 80 per cent of the assets of the borrowers and directors of the Financial Technologies ( India) Limited, or FTIL. The joint commissioner of police, HIMANSHU ROY, talks about the status of the investigation and the way

ahead with Sharleen D'Souza. HIMANSHU ROY

Joint commissioner of Mumbai police



CS A Rengarajan
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