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By:

Quaid Najmi

4 January 2025 at 3:26:24 pm

Gas crunch reaches Mumbai’s high-rise

Mahanagar Gas cuts PNG supply by 50 pc; biz hit Mumbai : Delivering another shock, the Mahanagar Gas Ltd. on Saturday mandated all commercial users to draw only 50 pc of their piped natural gas (PNG) supply with a warning of steep fines and abrupt cut in connection for violators, sending shockwaves in the industry.   This comes barely 48 hours after its first missive (March 12) imposing a 20 per cent  cut in PNG offtake by commercial users, which hit the bakery industry hard, amid...

Gas crunch reaches Mumbai’s high-rise

Mahanagar Gas cuts PNG supply by 50 pc; biz hit Mumbai : Delivering another shock, the Mahanagar Gas Ltd. on Saturday mandated all commercial users to draw only 50 pc of their piped natural gas (PNG) supply with a warning of steep fines and abrupt cut in connection for violators, sending shockwaves in the industry.   This comes barely 48 hours after its first missive (March 12) imposing a 20 per cent  cut in PNG offtake by commercial users, which hit the bakery industry hard, amid  speculation that lakhs of domestic PNG users may be affected next.   The MGL’s directives follow a central order (March 9), calling upon all commercial users to restrict their PNG consumption to only 50 pc of their average usage over the past six months.   The revised rules within 48 hours sent fresh shockwaves among the already panicked commercial PNG users, triggering apprehensions that even domestic consumers may feel the heat with likely ‘rationing’ of their convenient piped fuel connections.   “The gas curtailment is around 50 pc for industrial customers and 20 pc for commercial customers to maintain continuous gas supply to our CNG stations and domestic PNG customers,” a company spokesperson told  The Perfect Voice , justifying its ‘force majeure’ intimations.   Price Revision In its first order, the MGL had indicated a revision in PNG prices due to “gas pooling” arrangements, with the final rates to be announced after consultations with suppliers and the government.   Today, it willy-nilly unveiled the potential harsh hike in the rates of PNG: “We have been informed that any gas drawal by MGL exceeding permissible levels will attract a gas price of Rs 138/Standard Cubic Metre plus VAT.”   Accordingly, all commercial users have been warned that from Friday (March 13), if they cross the threshold limits (50 pc), they will be charged Rs 138/SCM  (Rs. 4091.21/MMBTU), and further usage above the permissible limits would lead to abrupt disconnection of supplies.   Piped Gas Presently, the MGL has over 30-lakh households using PNG in Mumbai and Mumbai Metropolitan Region (MMR), besides 5,200-plus commercial-industrial clients spread in multiple sectors, wholly dependent on piped gas connections.   Additionally, it runs 471-plus CNG stations and supplies it to more than 12-lakh vehicles including public and private transport, with plans to cover large urbanized pockets of Raigad district by 2029   Some of its bulk users include: Godrej Industries Ltd., Larsen & Toubro, Hindalco, several five-star hotels, IT companies, medicare like Asian Heart Institute or Lilavati Hospital, pharmaceutical industry, food and beverages, etc.   Home-makers howl An online achievement school ‘Multiversity of Success’ Founder Dr. Rekhaa Kale (Sion) said if the PNG cuts reach homes, it will disrupt the lives of millions of Mumbaikars. “Now, I regret giving up my LPG cylinders 10 years ago for the PM-Urja scheme, it could have been a life-saver today,” grumbled Dr. Kale.   A private nurse Kirron V. (Dahisar) rued that the real impact of gas shortage will be visible in Mumbai if domestic PNG supplies are also hit. “The so-called elite living in airconditioned high-rises sniggered and ‘looked down’ upon those sweating it out in snaky queues for a LPG cylinder,” she said sarcastically.   As the Gulf War entered the 15 th  day today, the FHRAWI-AHAR Vice-President Pradeep Shetty and other major organisations have repeatedly slammed the government for the acute short supply of LPG leading to chaos all over.

Committees galore, no action

Kolhapur: Something remarkable has happened to heart care in India over the past two decades. Procedures that once required a patient to travel to a major city — angiography, angioplasty, complex interventions — are now available in district hospitals. The machine that made this possible is the catheterisation laboratory, the Cath Lab, a sophisticated imaging suite that has quietly become the backbone of modern cardiac treatment.


Maharashtra has been expanding this network. That is the good news. The troubling part is what the expansion is costing.


The big manufacturers in this space: Philips, GE HealthCare, Siemens Healthineers; price a quality Cath Lab at roughly Rs 6–8 crore. Bundle in installation, civil works, ancillary equipment, the whole turnkey package, and you are still looking at Rs 10–12 crore by most industry reckonings. So when procurement figures in Maharashtra climb to Rs 25–40 crore for a single unit, the gap demands an explanation.


Two government resolutions from the State's Medical Education Department tell the story bluntly. On January 25, 2024, a Cath Lab was approved at Rs 16.50 crore. Six months later, on July 5, 2024, the same department cleared Rs 39.76 crore on a turnkey basis for a biplane Cath Lab at CPR Hospital in Kolhapur. That is a difference of Rs 23.26 crore.


The Public Health Department has since sanctioned Rs 99.85 crore for Cath Labs in Pune, Kolhapur, Jalna, and Gadchiroli, working out to roughly Rs 24.96 crore apiece.


The Issue

To understand how prices get this far from reality, you have to follow the supply chain. Maharashtra once bought medical equipment through government rate contracts. When irregularities surfaced there, procurement moved to the Haffkine Institute. That arrangement bred its own dissatisfactions, and purchases shifted again, this time to District Planning and Development Council funds.


In the earlier model, manufacturers bid directly. That meant the original company stood behind the warranty, the maintenance, the performance; all of it contractually binding. But as tender prices crept upward, manufacturers grew cautious. They have global pricing norms to protect and reputations to consider. Quietly, many stepped back from tenders where the quoted figures looked hard to justify.


Distributors filled the vacuum. The mechanics are simple: a manufacturer invoices a distributor at a standard rate; the distributor quotes the government at a far higher one. The manufacturer's exposure is limited to what it charged the distributor. The markup in between sits beyond the reach of direct corporate scrutiny. With enough institutional weight on the buying side, public controversy becomes easier to contain.


Inquiry After inquiry

The Cath Lab story would be troubling enough on its own. But it is part of something larger; a pattern of governance failure in Maharashtra's health sector where accountability has become almost theoretical.


The pandemic made this visible to everyone. While people hunted for oxygen cylinders and basic medicines, procurement deals were allegedly being struck at many times the market rate. Legislative uproar followed.


Audit inquiries were commissioned and reportedly confirmed financial irregularities running into crores. And then? Years on, critics point out that not a single clerk was suspended. The officials against whom inquiry reports recorded the most serious findings are said to have been promoted.


At CPR Government Hospital and Rajarshi Shahu Government Medical College in Kolhapur alone, the count of inquiry committees reportedly crosses a hundred. A fire at a trauma care centre allegedly cost patients their lives; an inquiry was ordered and apparently went nowhere. A lift malfunction injured a patient; a committee was formed, accountability never fixed.


The irony

An inquiry into inflated procurement was apparently abandoned after its own chairperson resigned, citing pressure. A clerk allegedly misappropriating fees from paramedical courses was referred to a committee; what followed remains opaque. In at least one case, people who were themselves the subject of ongoing scrutiny were later appointed to chair other committees. Files pile up. Conclusions do not.


Credibility Deficit

Health is not an abstract policy domain. When a hospital lift fails and nobody answers for it, when procurement is inflated and the inquiry dissolves quietly, the consequences fall on patients; people who often have nowhere else to turn.The credibility deficit this creates is real and cumulative. Once officials understand that irregularities carry no personal cost, a culture sets in that is very difficult to reverse.


Maharashtra needs its Cath Labs. That is not the argument. The argument is that spending public money to build health infrastructure, while tolerating opacity in how that money is spent, is not a health policy. it is a contradiction. Restoring trust will take more than the next committee.


(Concludes)

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