EGoM meet on LPG scheduled for Tuesday

An Empowered Group of Ministers(EGoM) headed by Finance Minister Pranab Mukherjee is likely to consider onTuesday limiting supply of subsidised domestic LPG cylinders to 4-6 perhousehold in a year.

The EGoM meeting is slated for Tuesday to considerrecommendation of the Task Force on Direct Transfer of Subsidies on kerosene, LPG and fertiliser.

Sources said if approved, every household will get only 4-6LPG cylinders at subsidised price of Rs 395.35 in Delhi and they will have to pay market priceof about Rs 710 per bottle for any requirement beyond that.

The limited supply of subsidised LPG would be for those whoown a car, two-wheeler, house or figure in the income-tax list.

Each 14.2-kg bottle of LPG normally lasts a household 45-60days and based on this calculation a maximum of six cylinders are consideredenough to see a family through the year.

Currently, records of LPG distributors of public sectorcompanies shows that a vast number of households are taking as many as 20 to 30cylinders per household each year.

This suggests that large scale diversion of subsidisedcooking gas is taking place for use in commercial establishments, such asrestaurants and dhabas and as auto fuel.

LPG for commercial use is sold at the market price andpacked in different cylinders.

In the second phase, the difference between the currentretail price and the actual market price will be paid directly to BPLcardholders. This would be delivered through the unique identification number,Aadhar, as it is commonly known.

For kerosene, the task force has suggested direct subsidytransfer to the poor and market prices for others.

Sources said the EGoM may approve launch of pilot projectsto test direct transfer of cash subsidy to the targeted populations in fewstates.

Seven states - Tamil Nadu, Assam,Maharashtra, Haryana, Delhi,Rajasthan and Orissa - have been identified for launch of the pilot projectsfrom October, according to the road map suggested by the Unique IdentificationAuthority of India (UIDAI).