4 months after fixing LPG cylinder cap at 6, govt raises it to 9

Oil companies allowed to raise diesel prices by a small quantum periodically; from April 1, households entitled to nine cylinders per annum; no change in LPG, kerosene rates

GN Bureau | January 17, 2013


Consumers to get five subsidised cylinders between September 2012 and March 2013; nine cylinders from next fiscal.
File photo

With assembly elections in several states around the corner and the general elections due next year, the UPA government seems to have succumbed to populist measures. On Thursday, the government took a decision to increase the cap of subsidised LPG cylinder from six to nine.

The revision will come into effect from April 1.

"I am happy to inform that the cabinet committee on political affairs has decided to raise the cap on subsidised LPG to nine cylinders per household in a year from existing six cylinders," oil minister M Veerappa Moily told the media.

But there will be no change in LPG and kerosene rates, he added.

Consumers will get a quota of five subsidised cylinders between September 2012 and March 2013 and from April 1, 2013, they will be entitled to nine cylinders per annum, the PTI reports.

The CCPA had on September 13, 2012 decided to limit the number of subsidised cylinders per household at an annual six. On September 17, Sheila Dikshit’s Delhi government raised the cap from six to nine.

On Thursday, Moily said oil companies have been permitted to raise diesel prices by a small quantum periodically till such time that they are able to cover Rs 9.60 per litre loss they incur on the fuel.

Refusing to provide details of diesel price increase, Moily said the raise may take place as early as Thursday night.

The question, though, is why was the cap put on in the first place if it was to be lifted later? Upcoming elections in as many as 10 states between now and the general elections next year is being seen as the answer. Having burnt its hands in Gujarat, and nearly its fingers in Himachal Pradesh assembly elections, with the LPG subsidy issue seen as having had the potential to upset Virbhadra Singh’s applecart in the hill state, the Congress seems game to marry off Manmohanics with populism ahead of its chintan shivir in Jaipur.

Meanwhile, the cabinet committee on economic affairs (CCEA) approved using proceeds from the stake sale of public sector units to recapitalise public sector banks and insurance companies, besides subscribing to shares of public sector companies to retain a 51-percent stake.

The CCEA also allowed export of processed products — among them wheat or meslin flour, cereal flour, cereal groats, meal pellets, milk products, peanut butter and value-added products of onion. Since these products constitute a small portion of India’s overall exports, their continued export will not affect availability in the domestic market and encourage investment in the processed food sector and cold chain infrastructure in the country, says a report on livemint.com.

 

Comments

 

Other News

Hydro engineering college to come up in Himachal

 Prime Minister Narendra Modi has laid the foundation stone of hydro engineering college at Bilaspur in Himachal Pradesh. The college, being set up by National Thermal Power Corporation (NTPC) and NHPC, will provide B Tech courses in mechanical, electrical, civil and computer science discipl

BHEL commissions 3MW solar plant in Dadra & Nagar Haveli

 Bharat Heavy Electricals Limited has commissioned a three Mega Watt solar photo voltaic power plant in Dadra and Nagar Haveli.  BHEL executed this project on a turnkey basis for Dadra and Nagar Haveli power distribution corporation limited at Velugam.   It

Back to the drawing board: Kejriwal

Time to go back to the drawing board, said Delhi chief minister and Aam Aadmi Party leader Arvind Kejriwal on Saturday, days after his party failed to make its mark in the Delhi civic elections.   In a message, Kejriwal said that in the last 2 days, I spoke to many vo

Grasp the nettle by taxing rich farmers

  The tax net needs to be expanded and the rich farmers must pay up their taxes. This week saw quite a bit of going back and forth over this prickly issue after Niti Aayog member Bibek Debroy batted for taxing agricultural income.   Niti Aayog vice chairman A

Attention to NTDs, dream of an equal, accessible internet and the struggles of CIC

  A giant yellow inflatable schistosomiasis worm, with ‘Making Schistory’ printed on it, floated on Lake Geneva, marking the five years since the London Declaration on neglected tropical diseases (NTDs). Though in 2015 about 1.59 billion people received treatment for at least

BBNL, BSNL to provide broadband connectivity to 1.3 lakh rural post offices

In order to provide broadband connectivity of BharatNet to post offices in rural areas, Bharat Broadband Network Limited (BBNL), department of posts and Bharat Sanchar Nigam Limited (BSNL) have signed a tripartite agreement.   The agreement is the first tri-partite MoU which



Video

शहीदों के लिए आगे आये आईएएस अफसर

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter