The Jharkhand government has decided to withdraw the Rs.11 subsidy on cooking gas cylinder. Now each cylinder will cost Rs.370.
Chief Minister Arjun Munda gave the direction at a meeting of food and civil supply department Tuesday. With this, the state government will save Rs.28 crore, according to official sources.
The sources said the decision was taken because officials argued that the subsidy did not help the poor.
In 2008, the Madhu Koda government announced a Rs.50 subsidy on each gas cylinder after the central government hiked the price of a gas cylinder by Rs.60.
Seven months ago, the Shibu Soren government, in which the Bharatiya Janata Party (BJP) was a partner, had withdrawn a subsidy of Rs.39 on each cylinder.