1. Subsidised LPG: PM Narendra Modi govt targets 1 cr consumers to surrender subsidy

Subsidised LPG: PM Narendra Modi govt targets 1 cr consumers to surrender subsidy

Centre expects that about one crore well off consumers will surrender the subsidy on cooking gas after Prime Minister Narendra Modi...

By: | New Delhi | Updated: March 29, 2015 6:55 PM
lpg gas, lpg subsidy, lpg subsidy scheme, lpg subsidy in India, DBT scheme, Direct bank transfer, Narendra Modi, Narendra Modi news, Narendra modi lpg, narendra modi dbt Government expects that about one crore well off consumers will surrender the subsidy on cooking gas after Prime Minister Narendra Modi’s appeal to people not to take subsidy if they can afford to buy LPG at market price. (Reuters)

Centre expects that about one crore well off consumers will surrender the subsidy on cooking gas after Prime Minister Narendra Modi’s appeal to people not to take subsidy if they can afford to buy LPG at market price.

“The target is one crore. Let us see how many more people decide to surrender LPG subsidy,” a top government functionary said.

There are about 15.3 crore LPG consumers in the country.

Modi in his address to a global energy conference last week said that as many as 2.8 lakh people have surrendered LPG subsidy which has led to savings of Rs 100 crore.

“As many as 2.8 lakh people have responded positively… and this will lead to a saving of at least Rs 100 crore. This Rs 100 crore can be utilised for the welfare of poor,” Modi had said.

Since the government started the new scheme of direct benefit transfer (DBT) for cooking gas, several persons opted out of the subsidy scheme.

Under the DBT, the subsidy amount is directly credited into the bank accounts of consumers even as they pay full amount for LPG cylinder at the time of purchase. Consumers are currently entitled to 12 14.2-kg cylinders or 34 five-kg bottles in a year at subsidised rates.

Oil Minister Dharmendra Pradhan has already urged ministers, MPs, MLAs, senior government officials and executives of public sector companies to give up their subsidies.

Public sector oil marketing companies (OMCs) have given an option to existing LPG consumers to convert their existing domestic LPG connection into a non-subsidised domestic connection. This can be done by submitting a written request to the distributor or electronically via www.MyLPG.in.

Giving up subsidised LPG will help cut the government’s subsidy bill.

In 2015-16 Budget estimates, petroleum subsidy has been halved to Rs 30,000 crore, from estimated Rs 60,270 crore in the current fiscal. Of Rs 30,000 crore for next fiscal, Rs 22,000 crore has been earmarked for LPG subsidy and the rest is for kerosene.

  1. J
    Jagannath
    Mar 29, 2015 at 6:44 pm
    Instead of this appeal, I would have loved to see him appeal all Politicians and Government officials to NOT TAKE BRIBES and NEITHER ALLOW ANYONE TO TAKE BRIBES. This would have earned the Govt 100 times more money than spent on subsidy. First, can you please explain the actual costs and subsidy? Subsidy is fake. Cost of raw materials, processing, transportation and marketing is far less. The Taxes add up and then part of it shows up as subsidy. Take an example of Diesel. Crude @ $50 (i.e. 3100/200 = Rs. 15.5 per lit. Add $4.8 per barrel for refining, i.e. Rs. 1.55. Add marketing and other costs. Overall doesnt cross Rs. 20 / litre. And these politicians say it is sold at subsidized rate at Rs. 54 per litre. Either their mathematics is weak... or...
    Reply
    1. L
      Lalit Dhiman
      Mar 29, 2015 at 12:24 pm
      If the Prime Minister says that India saved 100 crore INR when 2.8 lakh people gave up the LPG subsidy, he meant government provided INR 3571 subsidy on each cylinder..........OMG!!!!!
      Reply
      1. D
        Deepak
        Mar 31, 2015 at 6:23 pm
        "Will help the poor"..What a joking statement from a right wing party. A fact is that since Narendra Modi Government came to power I am avoiding paying taxes by closing my bank account and using cash only method of business because he will surely not spend the tax money I am ready to pay to the government of India on welfare of the people. Instead he would spend them on buying new designer weapons from US (Millitary Industrial Complex)MIC, useless army and his funding business houses if they run into losses. Then why waste my money. I will pay all my tax evasion money only when his government falls. Even if I am legally a criminal for evading taxes so be it...
        Reply
        1. S
          Sadasivan
          Mar 30, 2015 at 2:34 am
          One is surprised by the NDA's attack on Middle Cl,as the Revenue from petroleum Fuels is always higher than the subsidy,given to the OMCs,who claim "under-recoveries' based on market pricing[free market] WHILE no FREE MARKET EXISTS IN THE world INCLUDING THE USA. Examples are:- 1.Plunge Protection team to keep the Dow at the desired level 2.WTI Crude subsidy from the 50s of the last century 3.QE:- a mive subsiddy to bankers 4.ZIRP and NIRP:- Again mive subsidy for Debtors,bankers and Hedge funds,who misuse the notorious Carry Trades, and earn profits "just like that" 5.Subsidies to the Framers. One Mr Thomas of Kerala,rightly pointed out the flaws in the pricing by OMCs and the under-recoveries. Please google for:- 1.under-recoveries 2.IMF riot
          Reply
          1. X
            xyz
            Mar 29, 2015 at 8:12 pm
            Rahul hi increased the subsidy from 9 to 12 cylinders. Now Modi is removing them for all. Initially it will be so called voluntary. Then all income tax payees. Then all urban, etc. Rail fare increased. Petrol increased. Service tax increased. Mobile charges increased. Electricity rates increased. Bread increased. Now gas increased. Who are the stupid middle cl people who voted him to power?
            Reply
            1. K
              kumar
              Apr 2, 2015 at 3:14 pm
              Dear Prime Minister, Start with Your Office - Let ALL VIP's, Minister's, Judge's, Ranking Government officials - Optout of LPG first. Then you approach common man. To target corporates and neglecting the huge "Rich"& corrupt base is wrong and immoral!
              Reply
              1. T
                t p
                Mar 30, 2015 at 8:00 am
                Income tax rates should be reduced, so that tax payers can voluntarily surrender the subsidies. Also amount of subsidies should not be more than 10% of the market price . Misuse of military canteen items also can be prevented by such measures. National wastages & corruption can be eliminated by strict vigilance & administration of the ration schemes, FCI functioning, military canteen.............etc. ***Jai Hind ***
                Reply
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