EGoM meet on LPG deferred

A meeting of the Empowered Group of Ministers headed by Finance Minister Pranab Mukherjee to consider limiting supply of subsidised domestic LPG cylinders to 4-6 per household in a year, has been deferred.

The EGoM meeting was slated for 1630 hours today but had to be deferred due to the Cabinet reshuffle, official sources said.

The panel was to consider recommendation of the Task Force on Direct Transfer of Subsidies on Kerosene, LPG and Fertiliser.

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

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

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

For kerosene, the Task Force has suggested direct subsidy transfer to the poor and market prices for others.

Sources said the EGoM was to approve launch of pilot projects to test direct transfer of cash subsidy to the targeted populations in few states.

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