A significant administrative and regulatory confrontation has erupted between the Andhra Pradesh government and the Union government over the supply of diesel for Amaravati construction works. This exposes not just a procedural disagreement but a pattern of the TDP government attempting to bypass established rules in its rush to project construction momentum in the capital city.
What the AP Government Did
On April 24, Civil Supplies Commissioner K Kanna Babu wrote to Oil Marketing Companies (OMCs) directing them to supply High Speed Diesel (HSD) through retail fuel outlets to support ongoing infrastructure activity in Amaravati.
The Andhra Pradesh Capital Region Development Authority (APCRDA) had estimated a total diesel requirement of 27,566.25 kilolitres up to July 2026. The phased demand was broken down as follows: 4,238.84 KL for the remaining days of April, 8,879.61 KL for May, 7,527.72 KL for June, and 6,920.08 KL for July. The state government requested nearby petrol bunks supply diesel at retail prices to ensure the uninterrupted execution of works.
What the Centre Said
In a sharply worded letter dated April 25 written just one day after the state’s directive, Ministry Secretary Dr. Neeraj Mittal wrote to AP Chief Secretary G Sai Prasad raising strong objections. The Centre’s position was clear and unambiguous: the state’s directive is not in conformity with the Petroleum Rules 2002 and the guidelines issued by the Petroleum and Explosives Safety Organisation (PESO).
The Centre pointed out several critical legal problems with the state’s approach:
First, under existing norms, fuel from retail outlets can only be dispensed into vehicle tanks or approved containers, with a maximum limit of 200 litres per transaction. Retail outlets are simply not licensed for bulk fuel supply operations — making the state’s directive legally untenable on its face.
Second, the Ministry warned that the move could lead to violations of the Motor Spirit and High Speed Diesel (Regulation of Supply, Distribution and Prevention of Malpractices) Order 2005, issued under the Essential Commodities Act. By forcing deviation from prescribed modes of fuel distribution, the state directive creates serious risks related to licensing, handling, and storage.
Third, the Centre highlighted that diverting bulk diesel procurement to retail outlets bypasses established direct sales mechanisms specifically designed for infrastructure projects — mechanisms that exist precisely for situations like Amaravati’s large-scale construction requirements.
What the Centre Suggested Instead
Rather than simply refusing the state’s request, the Union Ministry offered a legally compliant alternative pathway. The Centre advised the AP government to utilise proper mechanisms such as direct bulk supply arrangements by OMCs or the Door Delivery of Diesel (DDD) scheme. The DDD scheme enables supply through PESO-approved tankers specifically designed for large-scale and stationary requirements, exactly what a capital city construction project of Amaravati’s scale would need.
In firm and direct language, the Centre urged the AP government to withdraw the civil supplies commissioner’s directive entirely and ensure adherence to national regulations. It also called for the Chief Secretary’s personal intervention to maintain uniformity and safety in fuel distribution practices across the state.
The Centre’s response — swift, detailed, and arriving within twenty-four hours of the state’s directive suggests that the impropriety was obvious and immediately apparent to those familiar with fuel supply regulations.
