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Rural poor to get INR 1400 subsidy for LPG connection - Mr Deora

Steel News - Published on Tue, 30 Nov 2010

Mr Murli Deora oil minister said the government would offer INR 1,400 subsidy per LPG connection to BPL families in rural areas as part of its effort to increase the reach of cooking fuel among the poor.

Mr Deora told reporters that “The proposed subsidy will be available to the new connections being offered under the Rajiv Gandhi Rural LPG Distribution Scheme.”

Significantly, the minister refused to take any question on the Cairn-Vedanta deal. The British energy major Cairn and domestic firm Vedanta are waiting for the government nod for their USD 9 billion sale agreement inked in mid August.

The minister also declined to comment on media reports that the state-run power utility NTPC may go in for an out-of -court settlement with Reliance on its gas pricing row.

Mr Deora said that “Under the Vision-2015, the ministry has an ambitious plan to further expand penetration of cooking gas to 16 crore households from the present 12.2 crore, covering 75% of the households.”

Additional Secretary Mr Sudhir Bhargava said that most of this higher growth will come from rural areas as well as the Northeast, where LPG penetration is poor.

On the prevailing LPG shortage, Mr Bhargava further said that by December 15th, distribution will be normalized. He attributed the shortages to festive demands, unseasonal rains in many parts, higher demand from the North due to the winter demand besides panic booking by consumers and said oil marketers are working on a war footing to normalize the supply.

Mr Deora said the country will have to import 3.9 million tonne or 32% more cooking gas this fiscal to meet the growing demand and pointed out that the number of LPG connection has grown nearly three times since 1999 when there were only 3.81 crore consumers, to 12.2 crore now.

While domestic production of the cooking fuel has gone up to 10.2 million tonne last fiscal, up from 7.6 million tonne in FY06, demand has gone up much faster and is projected to reach 13.96 million tonne this fiscal, he said and added that “LPG demand is projected to touch 19.2 million tonne by the turn of 2015.”

(Sourced from

Posted By : admin on Tue, 30 Nov 2010
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