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ENVIRONMENT: CNG

Unnatural Alliance

The Delhi Government and Nugas Technologies battle allegations of a CNG conversion kit deal

By Sayantan Chakravarty

For much of last week, there was one three-letter word that dominated most discussions in Delhi's official circles-CNG (compressed natural gas). It continues to cause plenty of heartburn to bus and autorickshaw drivers and commuters
alike. At the centre of the controversy is Nugas Technologies,
the only company authorised by the Sheila Dikshit-led Congress Government in Delhi to refit the Capital's diesel buses with
CNG kits.

Nugas is owned by businessman Ramesh Handa, who makes no secret of his friendship with the Gandhi family. Last week, transporters in Delhi were up in arms against him, and, on April 10, the first fir alleging a case of cheating and detailing his role in the CNG kit scam, was lodged at a Delhi police station. The Opposition BJP leaders also joined the fray: Lok Sabha member Madan Lal Khurana alleged a collusion between the Delhi Government and Nugas. At a press conference, he accused the Delhi Government of promoting the "business interest of Nugas" and demanded a CBI inquiry into what he termed a "Rs 200 crore CNG kit scam".

Suspicions of a deal between the Delhi government and Nugas have been floating around for a while. Last November, the
CBI registered a preliminary enquiry with the Central Vigilance Commission, following a complaint by a rival firm Rare Fuel and Automobile Technologies Private Ltd (RFAT). The company has subsequently moved the Supreme Court.

The controversy dates back to March, 1999, when the Delhi Transport Corporation (DTC) invited bids for the conversion of its fleet of about 1,800 diesel buses to CNG, following a Supreme Court directive in July 1998 in an air pollution case. RFAT acquired the pilot project for the conversion of two buses with its third generation (distributor-less ignition system) technology. RFAT says its conversion test results, carried out by the Dehradun-based Indian Institute of Petroleum (IIP), were encouraging: they showed a significant drop in pollution levels of hydrocarbons, nitrogen oxides and carbon monoxide after the use of CNG kits.

"This is where," alleges RFAT's managing director Sheetal Singh, "the scam began to take root." After the trials were completed, Singh claims he was approached by former Janata Dal MP Santosh Bhartiya, who promised him that the Delhi Government would place a conversion order for 100 buses with RFAT provided he coughed up a commission of Rs 1 lakh per bus for officials and politicians. Singh refused and claims he is now paying the price for saying no.

Subsequently, says Singh, the IIP refused to issue him a certificate clearing his CNG kit. In an affidavit filed in the Supreme Court, RFAT representatives claim they were sidelined only because the company refused to cough up the

Rs 1 lakh per bus conversion fee. Delhi's Transport Minister Parvez Hashmi, who oversees DTC and is named in the affidavit, dismisses the charges, calling RFAT a "roadside company".

There is, however, evidence to prove that things may not have been all above board. On February 25, 2000, four days before Nugas was actually incorporated in the records of the Registrar of Companies, the Delhi Government placed an order for conversion with it. At the time the company did not have a background in such technology and hadn't even submitted a proposal for the order.

Handa is charged with using his connections in the Congress to influence the Delhi government. Not only did he get the order from the government-owned DTC, but nearly 5,000 CNG kits have also been booked with Nugas by private operators. The price: nearly Rs 5 lakh per kit. And with about 10,000 of Delhi's buses awaiting conversion, Nugas, as the city's sole supplier, stands to do business worth about Rs 500 crore.

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