Govt to increase LPG cap to nine cylinders
12 Dec 2012 6:38 AM IST
Petroleum and Natural Gas Minister Veerappa Moily on Tuesday indicated that the government was considering to increase the cap on subsidised LPG cylinders from six to nine in a year, adding the cabinet will soon take a final call in the matter. ‘The decision has been taken a long time ago, only its implementation remains,’ added Moily, saying he has had two rounds of discussions with the finance ministry over the matter.
Millennium Post on 12 October, in its report ‘Govt decides to increase LPG cylinder cap’ had clearly mentioned about the government’s plans to increase the cap on LPG cylinders. The report had said that under pressure from the opposition, allies and its own party members, the government has decided to increase the cap on subsidised LPG cylinders. The decision to this effect was taken amid political drama in the union cabinet meet, with the agriculture minister Sharad Pawar leading the pack that wanted the cap to be upped. Sources say Pawar had already taken the top leadership of the Congress into confidence on the issue.
Coming as a welcome surprise for consumers, the government indicated it might hike the cap on subsidised LPG cylinders from the current limit of six per family to nine.
Moily had said earlier on Tuesday that he had had two rounds of discussions with finance minister P Chidambaram on the impact which the decision to raise the cap of LPG cylinders would cause. He also said the government will have to provide an additional Rs 9,000 crore rupees annually if the cap is raised. ‘We are working on certain formula to neutralise it,’ added Moily.
In September, the government had announced the cap on LPG cylinders limiting them to six. Earlier this year in November, the petroleum ministry had informed that the government was considering raising the cap from 6 to 9 ‘within a few days’ but that didn’t immediately happen at that point of time.
However, this has not gone down well with the Election Commission which has written to the petroleum ministry directing that the move to raise LPG cylinder cap be ‘stopped forthwith’.
The Election Commission has also sought explanation from the minister on the alleged provocation for announcing the sop less than two days before polling for the first phase in Gujarat. The minister has been asked to send in his reply by 11 am on Wednesday.
Millennium Post on 12 October, in its report ‘Govt decides to increase LPG cylinder cap’ had clearly mentioned about the government’s plans to increase the cap on LPG cylinders. The report had said that under pressure from the opposition, allies and its own party members, the government has decided to increase the cap on subsidised LPG cylinders. The decision to this effect was taken amid political drama in the union cabinet meet, with the agriculture minister Sharad Pawar leading the pack that wanted the cap to be upped. Sources say Pawar had already taken the top leadership of the Congress into confidence on the issue.
Coming as a welcome surprise for consumers, the government indicated it might hike the cap on subsidised LPG cylinders from the current limit of six per family to nine.
Moily had said earlier on Tuesday that he had had two rounds of discussions with finance minister P Chidambaram on the impact which the decision to raise the cap of LPG cylinders would cause. He also said the government will have to provide an additional Rs 9,000 crore rupees annually if the cap is raised. ‘We are working on certain formula to neutralise it,’ added Moily.
In September, the government had announced the cap on LPG cylinders limiting them to six. Earlier this year in November, the petroleum ministry had informed that the government was considering raising the cap from 6 to 9 ‘within a few days’ but that didn’t immediately happen at that point of time.
However, this has not gone down well with the Election Commission which has written to the petroleum ministry directing that the move to raise LPG cylinder cap be ‘stopped forthwith’.
The Election Commission has also sought explanation from the minister on the alleged provocation for announcing the sop less than two days before polling for the first phase in Gujarat. The minister has been asked to send in his reply by 11 am on Wednesday.
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