Connaught Place Restaurants Face PNG Connection Hurdles, Menu Prices Likely to Rise
CP restaurants struggle to get PNG despite relaxed norms, may hike menu prices
Hindustan Times
Image: Hindustan Times
Restaurants in Connaught Place, New Delhi, are struggling to obtain Piped Natural Gas (PNG) connections due to technical and legal challenges, forcing many to rely on expensive Liquid Petroleum Gas (LPG). As a result, menu prices may increase by 10-20% to offset rising costs, with only one restaurant successfully securing a PNG connection despite recent regulatory relaxations.
- 01Restaurant owners in Connaught Place are considering a 10-20% increase in menu prices due to rising LPG costs.
- 02Despite relaxed regulations, only one restaurant has successfully obtained a PNG connection in Connaught Place.
- 03Obtaining a PNG connection requires significant construction costs, estimated at around ₹5 lakh (approximately $6,000 USD) for some establishments.
- 04The New Delhi Municipal Council has waived road restoration charges for PNG pipeline installation for three months.
- 05Indraprastha Gas Limited (IGL) stated that the internal pipeline connection is the responsibility of the restaurant owners.
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Restaurants in Connaught Place, New Delhi, are facing significant challenges in securing Piped Natural Gas (PNG) connections due to ongoing technical and legal hurdles, despite recent regulatory relaxations intended to facilitate the process. As a result, many establishments are still dependent on costly Liquid Petroleum Gas (LPG), leading to potential menu price increases of 10-20%. Vikram Badhwar, general secretary of the New Delhi Traders Association, highlighted that many restaurants have struggled for over 20 years to obtain PNG connections, with only one restaurant successfully making the switch. The situation worsened after the conflict in West Asia disrupted LPG imports, causing prices to spike. The New Delhi Municipal Council (NDMC) has attempted to alleviate the situation by waiving road restoration charges and expediting permissions for pipeline installation. However, restaurant owners face additional challenges, such as the high costs of construction to connect to PNG meters, which can reach around ₹5 lakh (approximately $6,000 USD). Indraprastha Gas Limited (IGL) has stated that the responsibility for internal pipeline connections lies with restaurant owners, complicating the transition to PNG. Despite these challenges, some restaurant owners remain hopeful for future connections.
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If menu prices increase, it will directly affect consumers dining in Connaught Place, potentially leading to reduced foot traffic and customer spending.
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