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

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

PNB fraud: Why we need banking reforms

Billionaire jeweller Nirav Modi, whose properties are being searched after Punjab National Bank reported a massive fraud of Rs 11,000 crore, is a good reason why banking reforms

Gender based atrocities happens across the world: Dr Rashmi M Oza

“Gender based discrimination is worldwide and not alone in India. Offences against women are much more severe in cases of international trafficking, forced prostitution and pornography, women including migrant and refugee women face double barriers on virtue of their gender,"said Dr Rashmi M Oza

Rashtrapati Bhawan hosts LPG Panchayat for beneficiaries

A group of 104 women beneficiaries of the Pradhan Mantri Ujjwala Yojana participated and shared their experiences at LPG Panchayat organised at the Rashtrapati Bhawan on February 13. The women delegation, falling under the BPL category, came across 27 states to narrate their success stories

Bengaluru metro gets coach unit from BEML

BEML Ltd, a defence PSU, has delivered the first intermediate metro coach (car) unit to Bengaluru Metro Rail Corporation Limited (BMRCL). The intermediate car would be integrated with the existing three-car train sets to double the present passenger carrying capacity of the Bengaluru’

BHEL gets order for emission control equipment from NTPC

BHEL has got Rs 560 crore order for the supply and installation of flue gas desulphurisation (FGD) system from NTPC for 2x490 MW National Capital Power Station (NCPS). The Indian power sector has seen an uptick in the ordering of emission control equipment due to the revised and more stringe

UBI: The devil is in the detail

Instituting Universal Basic Income (UBI) requires public support spanning demographic lines, executive backing, and strong macroeconomic fundamentals. Weaken any leg of this tripod, and the redistributive preferences of any government may shift in favour of traditional welfare support and focusing on econo

Current Issue

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter