Govt. hikes subsidised LPG cap to 12 cylinders

Govt. hikes subsidised LPG cap to 12 cylindersThe Cabinet of the Congress-led UPA Government finally approved the proposal to hike the quota of subsidised LPG (cooking gas) from 9 to 12 cylinders per year per household.

The Cabinet Committee on Political Affairs approved the proposal in a meeting on Thursday. Following the meeting, Petroleum Minister M Veerappa Moily said that people would receive one cylinder each in February and March - the remaining months of current financial year, in addition to already approved nine subsidised cylinders.

Announcing the decision, Moily said, "In addition to the nine subsidised cylinders, people will get one cylinder each in February and March. Beginning April 1, people will get 12 cylinders per year at the rate of one cylinder per month."

The Minister also admitted that the decision would cost Rs 5,000 crore in additional subsidy per annum.

He also confirmed that the direct benefit transfer for LPG (DBTL) scheme has been put on hold. The allowed consumers in around 289 districts of 18 states to receive the subsidy amount in their Aadhaar-linked bank accounts. Explaining the reason behind the decision to put the scheme on hold, he said there were some complaints regarding implementation of the scheme, adding that the government has formed a committee to look into the complaints.

The quota of subsidised domestic LPG cylinders was initially capped at six in 2012 in order to cut the government's huge subsidy bill. But, political pressure later forced the government to hike the cap nine, and now finally to 12.