Gujarat becomes first state to launch subsidised PNG for BPL families

Pilot project started in Bharuch, will be taken to other parts of state later; one-time subsidy of Rs 1,600 on cards for each connection

On its foundation day, Gujarat became first in the country to offer subsidised piped natural gas (PNG) to households falling under the below poverty line (BPL) in Bharuch. In what is being launched a pilot project, the new PNG/LNG Sahay Yojana may see replication in other parts of Gujarat as well as other states.

Under the scheme, Gujarat government will provide a one-time subsidy of Rs 1,600 for each connection or household, apart from Rs 1725 as loan to consumers seeking new PNG connection.

For the subsidy, the state government is learnt to have made a provision of nearly Rs 720 million for the subsidy to the beneficiaries.

An extension of the Ujjwala Yojana, the scheme is being seen as a move to replace kerosene and offer cleaner fuel for BPL households. According to state government officials, the households in the Bharuch area have been selected on the basis of BPL as well as the state's own Antyodaya Anna Yojana (AAY) categories.

Last month, Gujarat government appointed Nitin Patil, chief executive officer, Gujarat Gas as the nodal officer for rolling out the scheme. Apart from the largest city gas distribution (CGD) company Gujarat Gas, the state government has also written to other CGD companies operating in the state for their support to the scheme.

It needs to be mentioned here that Gujarat has pipeline network covering over 25,000 km for city gas distribution, one of the largest in the country. The state also boasts a 1.8 million household connected to PNG.

According to a senior state government official, "Though being launched a pilot project, the scheme would be expanded to other municipal corporations and districts. The scheme is predominantly targeted at BPL families in urban areas where the gas distribution network is already present."

The launch of the scheme comes in the backdrop of an estimated 230,000 BPL households being targeted with the help of CGD companies under PNG/LNG Sahay Yojana.