M A I N   N E W S

Cap on subsidised LPG cylinders up from 9 to 12
UPA ‘game-changer’ Aadhaar-linked cash transfer put on hold
Tribune News Service

New Delhi, January 30
The Union Government today raised the cap on subsidised LPG cylinders from 9 to 12 per household in a year. The Centre reverted to the system of consumers paying only the subsidised amount to the distributors.

Petroleum Minister Veerappa Moily at a press conference said the Cabinet Committee on Political Affairs had approved the increase in quota of LPG cylinders. This would cost the government Rs 5,000 crore in additional subsidy every year.

Every household will be eligible for one extra cylinder, on top of the quota of nine cylinders, in February and March. From April, they will be entitled to 12 cylinders - one cylinder per month at subsidised rates, he said.

The direct benefit transfer for LPG (DBTL) scheme, where consumers in 289 districts across 18 states got the subsidy amount in their bank accounts after buying cooking gas at the market rate, had been put on hold, the minister said.

A committee had been formed to look into complaints about the implementation of the DBTL scheme, Moily said while explaining the reasons for putting on hold the ambitious scheme dubbed a game-changer for the UPA government.

“Pending the committee examining the issues, the Aadhaar-linked LPG subsidy transfer has been put on hold,” he said.

The increase in the quota of cylinders was in the offing for a while and was a done deal after Congress vice-president raised the demand with Prime Minister Manmohan Singh at the AICC session in Delhi earlier this month.

The DBTL scheme, under which consumers got Rs 435 in their bank accounts to help them buy an LPG cylinder at the market price, was this month extended to 105 districts, including Delhi and Mumbai.

One cylinder a month

  • On top of the quota of nine, households will get one extra cylinder each in February and March in the current financial year
  • From April, they will be entitled to 12 cylinders — one per month — at subsidised rates

It is not an admission of failure… and we are proud and happy that this programme (DBTL) has gone on very well. Even if there is a marginal error, we need to correct it
— Veerappa Moily, petroleum minister 





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