Govt hikes subsidised LPG cylinder quota to 12 per year

Rahul Gandhi at the national executive meet of the Congress urged PM to raise the cap on LPG cylinders from 9 to 12

Bowing to party pressure, the government today raised the quota of subsidised LPG to 12 cylinders per household in a year from nine at present and also put on hold paying users the subsidy into bank accounts using Aadhaar platform.

Announcing the decision taken by the Cabinet Committee on Political Affairs, Oil Minister M Veerappa Moily said raising the LPG quota will cost Rs 5,000 crore in additional subsidy annually.

Households will get one cylinder extra, on top of the quota of 9 cylinders, in February and March and from April they will be entitled for 12 cylinders -- one cylinder per month at subsidised rates, he said.

Moily also said the direct benefit transfer for LPG (DBTL) scheme, where consumers in as many as get 289 districts in 18 states got the subsidy amount in their bank accounts so that they could buy cooking gas at market rate, has been put on hold.

Explaining the reasons behind the move to put on hold a scheme that was dubbed 'game-changer, he said there were complaints about implementation of the scheme and a committee has been formed to look into them.

"Pending the committee examining the issues, the Aadhaar-linked LPG subsidy transfer has been put on hold," he said.

DBTL, under which consumers got Rs 435 advance money in their bank accounts so as to help them buy a LPG cylinder at market price, was this month extended to 105 districts including Delhi and Mumbai.

Currently, a subsidised LPG cylinder costs Rs 414 while the market price comes to Rs 1,021.