Domestic LPG cylinders fuel hotel business in Nizamabad

Nizamabad: Subsidised gas cylinders that are meant for the households, are being used in commercial establishments in the district rampantly.

The subsidised gas cylinders are mainly used in restaurants and hotels located in Nizamabad as well as in towns like Mandur and Bodhan and Mandal centres without check as authorities look another way.

Subsidised cylinders are smuggled into hotels, fast food and tiffin centres contrary to regulations. This has become a business option for some agencies, which is denting the government revenue.

There are government regulations that only commercial cylinders should be used in hotels, fast food centres and other businesses and the colour of the gas cylinders meant for commercial use is also different. These blue-red 19-kg gas cylinders cost Rs 1,275 while the price of a 14.6 kg subsidized gas cylinders for households Rs 670. Thus, two subsidised gas cylinders can be purchased at the cost of one gas cylinder for business establishments.

That's why to save money on fuel the managers of hotels and owners of fast food centres are buying the subsidised gas cylinders ignoring the norms.

On the other hand, the gas agencies also get extra buck on sale of subsidised gas cylinders to hotels and restaurants. These gas agencies get a profit of up to Rs 200 per cylinder.

Obviously, this illegal sale of LPG cylinders doesn't go without notice of authorities. It is alleged that the Civil Supplies Enforcement officers are hand in glove with the gas agencies.

According to one estimate, the single domestic LPG cylinder connections in the district are around 20,7000. While the double connections are around 19 lakh, Deepam connections are up to79,000, CSR connections are 28,500.

There are 35 gas agencies, including Indane, HP and Bharat to supply cooking gas cylinders to households and commercial establishments.

Officials say that only 3,400 units of commercial LPG cylinders are sold in the entire district where there are thousands of hotels, fast food centres, tiffin centres, tea shops and other businesses. The number of gas cylinders is used based on the capacity of the hotel. At the tea stall, one LPG gas cylinder lasts for one to two weeks. The tiffin centres consume at least five gas cylinders in a month. In such a situation at least 65,000 commercial cylinders should be sold in the district. However, they are sold less than 4, 000 in the district which reinforces public suspicions about the illegal cylinders business.

It is impossible to run a hotel business on a commercial cylinder since the expenses will rise and profit will come down.

Not only that, but domestic gas cylinders are also used in cars and other vehicles, thus hoodwinking the government and denting the cash collection in the district. But who cares?