Expansion of 5 kg LPG cylinder scheme in Delhi

Honble Minister of Petroleum and Natural Gas today launched the sale of 5 kg cylinders under Free Trade LPG scheme at 100 additional locations across the Delhi to cater to the LPG requirement for all sections of the society including economically weaker families, students, migrant labour etc. Speaking on the occasion Minister said that LPG is cleaner fuel and helps in creating a better and smokeless cooking environment. LPG is easier to use and helps in faster cooking resulting in saving of time. Minister further stated that there are people such as migrant labourer, students, IT professional who do not have proof of Address, since they acquire a residence on temporary basis. Such people can buy a 5 kg LPG Cylinder at market price from various locations, including Retail Outlets of OMCs and designated shops located all across Delhi. The present cost of a non-subsidized 5 kg LPG connection including the cost equipment is Rs. 1887/- . The refill price for 5 kg cylinder under this scheme currently is Rs. 351/- and same shall vary on monthly basis. Under this scheme, the customer is free to take the refill as per his/her convenience from any of the authorized outlet on Cash & Carry basis.He also said that people can also take a regular 5 Kg LPG Cylinder connection at subsidized rate by registering themselves with Oil Marketing Companies. The weaker sections of the society, who may find the connection cost of 14.2 Kg cylinder high would benefit with this low cost 5 kg cylinder connection. A 5 kg New Connection, with security of cylinder and Regulator along with other mandatory charges and cost of LPG, costs Rs. 905/- as against a New 14.2 Kg Connection which would cost Rs 2297/-. The cost of 5 kg refill under this scheme is Rs. 155/- as against Rs. 417/- for 14.2 kg cylinder .The present subsidy element on the 5 kg cylinder is Rs. 196 per cylinder and the connection is available from LPG Distributorships of OMCs. Both methods of expanding coverage of 5 KG LPG cylinder are expected to be a boon for the society. Minister has also approved extension of Corporate Social Responsibility (CSR) fund scheme for all households poor below the poverty line including in urban areas. This will immensely benefit poor households. Earlier the scheme was only available for BPL families in rural areas covered under Rajiv Gandhi Gramin LPG Vitran Yojana . Under this scheme, security deposit of 14. 2 KG LPG connection and cost of pressure regulator amounting to Rs.1600 is borne by Oil Marketing Companies from the Corporate Social Responsibility Fund. The above extension is valid till the end of current financial year 2014-15.