Government’s flip-flop on subsidised LPG negates benefits

Jan 11 2014, 05:25 IST
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SummaryThe government's policy flip-flop on the LPG scheme continues

The government's policy flip-flop on the LPG scheme continues. While the government says it will continue to roll out the direct benefit transfer for LPG (DBTL) scheme, it is also considering raising the cap on subsidised cylinder per family from 9 cylinders to 12 a year. By expanding the DBTL scheme, the government will be able to curb leakages and reduce the subsidy. But by increasing the cap, it will have to dish out more money as subsidy.

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