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Tuesday, March 6, 2012

Sugam gets govt nod to resume op

The Ministry of Industry (MoI) has allowed Sugam Gas -- a notorious gas company that circulated liquefied petroleum gas (LPG) in tampered cylinders -- to resume operations even as it is yet to be tried under Consumer´s Rights Protection Act on charges of exposing consumers´ lives to grave risk.

Officials of Department of Industry (DoI) that issued a letter to this connection to the LPG bottler on Monday said they decided to let the company resume LPG bottling and sales as it served the suspension period and paid fine slapped by the MoI.

MoI had slapped a fine of Rs 500,000 on Sugam Gas and suspended its operations for six months as punishment.

“The company has already paid the fine slapped by the ministry. The suspension period also ended last week,” said Dhurba Lal Rajbansi, director general of the DoI.
Shiva Prasad Ghimire, proprietor of Sugam Gas, also told Republica that he received a letter on resuming operations on Tuesday and that his company would resume LPG bottling immediately.

“I have already filed an application at the Nepal Oil Corporation (NOC), requesting it to supply gas to my company,” he stated.

However, both Ghimire and Rajbanshi refused to talk about the case filed against the company by the Office of Cottage and Small Industry (OoCSI) -- the local market inspector -- in Sunsari.

The office had filed the case after its inspection found the company of illegally amassing cylinders of other bottlers and refitting Sugam´s foot rings and neck rings on them.

As such tampering works erodes pressure bearing capacity of cylinders, making them vulnerable to leakages and explosion, OoCSI and consumers rights protection bodies had assessed that the company had put consumers´ lives at risk by circulating tampered cylinders in the market.

Meanwhile, consumers´ rights activists have flayed the decision. “This is a wrong decision; we urge the government to revoke it,” said Ram Chandra Simkhada, secretary of the Consumers Right Protection Forum (CRPF). He even accused the ministry officials of working hand in glove with the company.

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