NEW DELHI: The government is looking into demands for raising the 6-cylinder annual cap on supply of subsidised cooking gas refills to each household, Oil Minister M Veerappa Moily told the Lok Sabha in a written reply on Friday.
The government had on September 13 decided to restrict the supply of subsidised cylinders of 14.2-kg each to households in a year. Any requirement beyond this number had to be purchased at market rates which are more than double the subsidised price of Rs 410.50 per refill in Delhi.
"Representations have been received to revise the annual cap, which are being looked into,"" Moily said in the written reply. He said any requirement beyond the six subsidised cylinders are currently being priced at Rs 895.50 per 14.2-kg bottle in Delhi.
Following the decision, the oil companies are weeding out consumers having multiple connections. They have generated a list of suspected customers who have multiple connections, he said adding customers have been asked to submit the Know-Your Customer (KYC) form to the LPG distributors to prove their genuineness.
So far, 1.08 million connections have been blocked and of these connections 241,000 have been surrendered, he said. ""Oil marketing companies have blocked 55,41,887 LPG connections during ongoing KYC drive, in an effort to stop diversion of subsidised domestic LPG.""
Moily said for the purpose of issue of subsidised LPG, a family is considered to be consisting of husband, wife, unmarried children and dependent parents living together in a dwelling unit having common kitchen.
Multiple LPG connections in different names at the same address and same-name-same-address have been allowed by converting them into market priced supplies, he added.
"The oil marketing companies (OMCs) are currently incurring under-recovery (loss) of Rs 478.50 per 14.2-kg subsidised domestic LPG cylinder," he said. The public sector OMCs incurred a revenue loss of Rs 138,541 crore on sale of diesel, PDS kerosene and domestic LPG at government controlled rates in 2011-12.
"The OMCs need to be compensated in order not only to maintain their financial health but also to allow them to generate resources for capital expenditure, modernisation and acquisition of assets for future growth," Moily said.
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