NON SUBSIDISED LPG GAS FOR 6 LAKH EARNER PER ANNUM

MPs’ committee wants Centre to provide free LPG to BPL families Panel says no subsidised gas for Rs 6-lakh earners In an attempt to reduce the increasing fuel subsidy bill, a parliamentary panel has recommended that the government end the policy of providing subsidised domestic cooking gas (LPG) to people whose yearly income is more than Rs 6 lakh.
The Standing Committee on Petroleum and Natural Gas in its latest report has suggested that the government may consider doing away with providing subsidised LPG to rich and affluent people with an income of over Rs 6 lakh per annum.
By stopping the distribution of the highly subsidised LPG to the rich, the Centre can distribute the surplus to people living in rural areas, the report, tabled in Parliament on Wednesday, said.
Though a 14.2- kg LPG cylinder in Delhi costs Rs 395.35 , this is Rs 247 short of its market price. If the panel's recommendation is accepted, people with more than Rs 6 lakh per annum household income will have to pay the Rs 642.35 per cylinder market price. The committee also suggested the Oil ministry starts providing free LPG connections to all eligible BPL families. “The scheme (should) be extended for the next Five Year Plan till all eligible BPL families are covered”, the report said.
Earlier, a high level task force headed by UIDAI chairman Nandan Nilekani had suggested limiting the supply of subsidised LPG cylinders to four to six per household a year while, for the rest of the cylinders consumers have to pay the market rate. The task force also said that the restricted subsidised LPG supply should be only for those who either own a car, a two-wheeler, a house or figure in the Income- Tax list. An Empowered Group of Ministers (EGoM), headed by Finance Minister Pranab Mukherjee, will take a call on this issue soon.
According to Petroleum ministry data, each 14.2- kg cylinder of LPG normally lasts a household 45-60 days and between four to six cylinders would be adequate for a year for a household.
According to LPG distributors’ records, a vast number of households were taking as many as 20 to 30 cylinders each year, raising a doubt of possible diversion for use in commercial establishments like restaurants and as autorickshaw fuel. As India’s fuel subsidy bills will cross $16 billion a year, Mukherjee announced the rollout of a new system based on the Nilekani report on a pilot basis in seven states—Maharashtra, Haryana, Rajasthan,
Orissa, Assam, Tamil Nadu and Delhi. Depending on the outcome of the pilot project, the new distribution system would be introduced across the country after six months.

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