Centre urged to remove hurdles in LPG supply by SHGs

The state government has sought the intervention of the Centre for resolving the problems faced by the Self Help Groups (SHGs) in providing LPG connection in rural areas under the ‘Shakti Gaon’ project of Orissa Rural Development and Marketing Society (ORMAS).

The problems include short supply of cylinders, insistence by oil companies on computerised booking and award of dealership in the operational areas of the SHGs among others, sources said.

Similarly, the Centre has been urged to initiate steps for encouraging the state owned oil marketing companies to allot rural dealership to other districts through the District Supply and Marketing Societies (DSMS) under ORMAS.

Sources said, the Orissa government roped in the public sector oil companies like Bharat Petroleum Corporation Ltd. (BPCL) and Indian Oil Corporation Ltd. (IOCL) to extend their services of supply of LPG in rural areas through self help groups (SHGs).

It was started in four districts on a pilot basis with the aim of strengthening the rural economy through corporate tie-up in the backdrop of regular need of LPG for every household in the rural areas.

Under the plan, the LPG dealership was awarded to DSMS and the SHGs were working as extension counters. ORMAS was to provide all the support to the SHGs including the infrastructure and working capital.

The pilot project was started last year in Ganjam district and was replicated in three more districts like Sundergarh, Jagatsinghpur and Mayurbhanj. It was envisaged to cover all households of the pilot districts in next 5 years in a phased manner.

However, due to various practical problems faced by the SHGs, they are not able to get the anticipated regular income and growth in business.

In this context, the secretary in the state panchayatiraj department of the Orissa government has sent a letter to the joint secretary (marketing), ministry of petroleum and natural gas, pointing out various difficulties faced by the SHGs under the project.

Apart from short supply of cylinders and insistence on computerized booking, the system of compulsory lifting of commercial cylinders, variance of stock and the award of dealership in operational areas of SHGs will reduce the scope for regular livelihood opportunities for the SHGs, he argued.