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Agrees to reduce VAT
August, 22nd 2009

Andhra Pradesh Chief Minister Y S Rajasekhara Reddy has principally agreed to reduce value-added tax (VAT) on natural gas sales from 12 to four per cent so that gas could be supplied to households through a piped network at a reasonable price.

The Chief Minister was reacting to a suggestion made by Petroleum and Natural Gas Regulatory Board chairman L Man Singh at the CM's camp office today, a CMO press note said.

The PNGRB chairman and his team made a presentation to the Chief Minister on the city gas distribution and natural gas pipeline network in the state.

Singh, according to the CMO release, suggested that the state government identify areas around the cities where gas could be distributed through pipelines. The state government may constitute a committee to identify such areas, Singh said.

The Chief Minister told the PNGRB chairman that the state is very keen in taking gas to every kitchen from the Krishna-Godavari basin. This should happen in the next five years, Rajasekhara Reddy added.

Ministers Kanna Lakshminarayana, Satrucharla Vijayaramaraju, transport principal secretary K Ratna Prabha, Road Transport Corporation Managing Director V Dinesh Reddy and other senior officials were present.

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