Govt launches scheme to supply domestic LPG

Written by feBureau | Jaipur | Updated: Mar 15 2010, 08:36am hrs
The government on Sunday launched a massive scheme to supply domestic liquefied petroleum gas (LPG) to three fourths of the country in five years, which will also see half of all the people in the 600 districts use thecleaner fuel .

The Rajiv Gandhi LPG Vitarak Yojana will also make LPG available to three- fifths of the rural folks by 2015. Oil Minister Murli Deora presided over the selection of distributors of LPG at Laxmangarh, nearly 50 km from Jaipur. The Scheme is implemented by three oil marketing companies Indian Oil Corporation, Hindustan Petroleum Corporation and Bharat Petroleum Corporation.

LPG will be distributed at rural and urban areas at the same price. Deora also said that thecentral government, Rajasthan authorities and IOC arelooking at setting up a refinery in the state, that will process the crudeproduced by Cairn Energies from the Barmer Fields. The project is being studied by a panel chaired by former petroleum secretary SC Tripathi. He is expected to submit his report in two weeks, the Minister said. ApurvaChandra,Joint Secretary in the Ministry of Petroleum said the Ministry is hopeful of getting the under-recoveries of oil retailers (lossesdue to selling fuel below cost) fully compensated by the government.

Ministry sources who did not wish to be named, said Prime Minister Manmohan Singh has agreed to give an extraRs 19000 crore towards subsidyto oil retailers for selling Kerosene and LPG below cost. The Finance Minster had earlier approvedRs 12000 crore towards oil subsidy this fiscal.The government has decided to give subsidy only by way of cash instead of the earlier practice of issuing oil bonds.