EGoM on LPG scheduled for tomorrow

An Empowered Group of Ministers (EGoM) headed by finance minister Pranab Mukherjee is likely to consider tomorrow limiting supply of subsidised domestic LPG cylinders to 4-6 per household in a year.

An Empowered Group of Ministers (EGoM) headed by finance minister Pranab Mukherjee is likely to consider on Tuesday limiting supply of subsidised domestic LPG cylinders to 4-6 per household in a year.

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The EGoM meeting is slated for tomorrow to consider recommendation of the Task Force on Direct Transfer of Subsidies on Kerosene, LPG and Fertiliser.

Sources said if approved, every household will get only 4-6 LPG cylinders at subsidised price of Rs 395.35 in Delhi and they will have to pay market price of about Rs 710 per bottle for any requirement beyond that.

The limited supply of subsidised LPG would be for those who own a car, two-wheeler, house or figure in the income-tax list.

Each 14.2-kg bottle of LPG normally lasts a household 45-60 days and based on this calculation a maximum of six cylinders are considered enough to see a family through the year.

Currently, records of LPG distributors of public sector companies shows that a vast number of households are taking as many as 20 to 30 cylinders per household each year.

This suggests that large scale diversion of subsidised cooking gas is taking place for use in commercial establishments, such as restaurants and dhabas and as auto fuel.

LPG for commercial use is sold at the market price and packed in different cylinders.

In the second phase, the difference between the current retail price and the actual market price will be paid directly to BPL cardholders. This would be delivered through the unique identification number, Aadhar, as it is commonly known.

For kerosene, the Task Force has suggested direct subsidy transfer to the poor and market prices for others.

Sources said the EGoM may approve launch of pilot projects to test direct transfer of cash subsidy to the targeted populations in few states.

Seven states -- Tamil Nadu, Assam, Maharashtra, Haryana, Delhi, Rajasthan and Orissa -- have been identified for launch of the pilot projects from October, according to the road map suggested by the Unique Identification Authority of India (UIDAI).