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  3. Govt increases subsidised LPG quota to 12 cylinders per household in a year

Govt increases subsidised LPG quota to 12 cylinders per household in a year

31 Jan 2014 Evaluate

Giving some respite to Indian households, the government has raised the quota of subsidised cooking gas to 12 cylinders from 9 per household in a year. The move will cost Rs 5,000 crore   annually for the government as an additional subsidy. Further, the government cleared that domestic households can get one extra cylinder on top of currently implemented scheme for 9  subsidised cylinders for the months February and March. Consumers will be entitled for 12  subsidised cylinders scheme from the next fiscal year beginning April.

At present, 89.2 percent of the 15 crore Indian LPG consumers use up to 9 cylinders in a year and only 10 per cent have to buy the additional requirement at the market price. With the implementation of 12 subsidised cylinders scheme, about 97 percent of the LPG consumers would be covered by this scheme.

However, the government suspended its ambitious direct benefit transfer for LPG (DBTL) to pay LPG subsidy in cash to consumers directly amid rising complains of not getting the benefit of this scheme in absence of either an Aadhaar card or a bank account linked Aadhaar. Earlier, the scheme was touted by the government as game-changer as it plugged distractions and helped subsidy to reach the intended beneficiaries. So far, the DBTL scheme has been implemented in country’s 289 districts in 18 states and provides cash of Rs 435 to consumers in their bank accounts so that they could buy cooking gas at market rate. Meanwhile, the government has decided to set up a committee which will review only the implementation of DBTL. After the suspension of DBTL scheme, the government will pay subsidy to oil companies as was practice earlier and consumer will get subsidised cooking gas from these companies.

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