Great Nicobar Struggles with Constant LPG Shortages Amid Bureaucratic Delays in Grating Approvals to Local Cooperative Society to Start LPG Distributorship Business

Tarun Karthick

Port Blair, 14 June 2024

Great Nicobar residents are grappling with a persistent shortage of LPG cylinders, exacerbated by inefficiencies in the current distribution system. The island’s LPG supply, managed by CCS Ltd., frequently falls short of consumer needs, leaving many households without adequate gas for cooking and other essential activities.

The existing distribution model employed by CCS Ltd. involves importing LPG cylinders and distributing them without maintaining sufficient local stockpiles. This approach often results in some villages being left out during distribution cycles, creating a continuous struggle for residents to secure their LPG supply.

A local cooperative society (Megapode Multipurpose Cooperative Society) has stepped forward, expressing interest in becoming an LPG distributor for Great Nicobar. The cooperative has applied for the necessary approvals and permissions to commence operations. However, their efforts have been stymied by delays within the Department of Civil Supplies and Consumer Affairs, which has yet to process their application. 

According to informed sources, the department’s inaction is preventing the cooperative society from moving forward with their plans. This bureaucratic bottleneck is particularly troubling given the government’s commitment to promoting ease of doing business. The cooperative’s entry into the LPG distribution market could provide much-needed relief to the residents of Great Nicobar and drive improvements in service from CCS Ltd. through increased competition.

The cooperative society’s application has been pending since 2022, with no resolution in sight due to administrative delays. Applications received around the same period by other entities were reportedly processed  by the department timely but this particular application was kept pending.  The application is pending with Civil Supplies Department even after it was recommended by the Assistant Commissioner, Campbell Bay and Deputy Commissioner, Nicobar District officially. Advocates argue that facilitating the cooperative’s entry into the market would align with broader governmental goals of supporting local enterprises and improving service delivery for islanders.

Local leaders and residents are urging the Andaman and Nicobar Administration to address the issue promptly, enabling the cooperative society to obtain the necessary approvals and begin distributing LPG cylinders. Such a move would not only ease the current supply shortages but also enhance overall service quality for the people of Great Nicobar.

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