Cabinet increases subsidised LPG cylinders from nine to 12

[fsayed]

Cabinet increases subsidised LPG cylinders from nine to 12 | Firstpost

The Union Cabinet on Thursday approved an increase in the number of subsidised domestic LPG cylinders that a household can get in a year from nine to 12. This, after Congress Vice President Rahul Gandhi had on 17 January requested Prime Minister Manmohan Singh to increase the subsidy saying nine cylinders were not sufficient for a household. "A family can get one cylinder every month," said oil minister Veerappa Moily. Reuters "Prime Ministerji, nine cylinders are not enough... the people want 12 cylinders not nine," Gandhi had said, during an AICC meeting in New Delhi. Immediately after the meeting, MoS in the Prime Minister's Office V Narayanasamy had said that the government will raise the allocation as Gandhi had made the request and he was the de facto leader of the Congress. Last week, Oil Minister M Veerappa Moily had said the Cabinet was likely to soon consider increasing the quota of subsidised cooking gas cylinders. "After our vice president Rahul Gandhi said nine cylinders are not enough, I have moved a Cabinet note to increase the quota to 12. I think the Cabinet is likely to consider the proposal this week," Moily had said after launching the sale of 5-kg cooking gas (LPG) cylinders at petrol pumps in the national capital. The move is likely benefit 10 percent of domestic LPG consumers who use above nine cylinders in a year. The minister had said 89.2 percent of the 15 crore LPG consumers use up to nine cylinders in a year and it was only 10 percent of the consumers that have to buy the additional requirement at the market price. If the quota is raised to 12, about 97 percent of the LPG consumers would be covered by subsidised LPG, he said. But increasing the subsidy will also come at a cost for the government. If the Cabinet does agree to a hike, which in all likelihood will happen, it will result in an additional fuel subsidy burden of Rs 3,300 crore-4,000 crore. The government already incurs about Rs 46,000 crore per annum as LPG subsidy. The government had initially capped the supply of subsidised domestic LPG cylinders to six per household annually in September 2012 in a bid to cut its subsidy bill. The quota was raised to nine in January 2013. With inputs from PTI

Read more at: Cabinet increases subsidised LPG cylinders from nine to 12 | Firstpost

 

[fsayed]

 

[Aarush]

Election Drama.. nothing new..

 

[third eye]

They will sell their mother now that elections are round the corner.

 

[fsayed]

 

[Rajaraja Chola]

Really really bad move. Gonna increase our subsidy bill by another 6000 crores. A populist measure. Even by 9 cylinders a year , it covered 90pc of population. This is stupidity.

 

[Bhai Zakir]

Its a very good step it will help every house.

 

[ExtraOdinary]

Good step. Vote for Rahulji, vote for India.

 

[Bhai Zakir]

Election Drama.. nothing new..

So what's wrong in it?? They are politicians aren't they??

Everybody do some trick for votes just take Modi do u really believe Modi when he want to start collecting iron nails for statue of liberty just before elections or sing song with lata in Mumbai.

 

[OrionHunter]

Your wish is our command, sir!!

So said the clowns of the CongrASS Party to Rahul Baba, the monarch-in-waiting!

 

[Parul]

Its a very good step it will help every house.

Thank You Owl Baba! Elections hai bahi! . Yeh public sab janti hai. I thanked Owl Gandhi..

 

[Fawkes]

RBI Governor questions rise in
LPG cap, calls it misdirected
subsidy
Karan Thapar CNN-IBN | 30-
Jan-2014 18:28 PM
New Delhi: Reserve Bank of India
Governor Raghuram Rajan has
questioned the decision to raise
the cap of subsidised LPG cylinders
from 9 to 12 per annum, calling it
a 'misdirected subsidy'. Speaking to
Karan Thapar on Devil's Advocate,
Rajan said, "What one should be
careful about is expanding the
misdirected subsidies in the
system. We have to be very careful
because we need to spend on very
important things we are not
spending on."
Following is the transcript of an
excerpt from the interview:
Karan Thapar: The Cabinet is
raising the cap on subsidised
cylinders from 9 to 12. That will
add several thousand more to this
subsidy bill and if the Finance
Minister is anyway missing it, it
will make sure he misses it
substantially?
Raghuram Rajan: What one should
be careful about is expanding the
misdirected subsidies in the
system. We have to be very careful
because we need to spend on very
important things we are not
spending on.
Karan Thapar: Is an increase in LPG
cylinders expanding the
misdirected subsidy?
Raghuram Rajan: I believe there is
a certain amount of population that
can benefit from subsidised LPG
cylinders. But beyond certain point
you are reaching people who can
well afford to pay for it. Now
whose pocket is it coming from. Its
coming from the pockets of people
who are getting subsidised
Karan Thapar: Just to underline,
when you go from 9 to 12, you are
reaching people who can afford to
pay, who don't need subsidy and
this, therefore, would be a
misdirected subsidy?
Raghuram Rajan: You are going
from 87 to 97 according to the
government figures, from 87 per
cent of the population to 97 per
cent of the population. If you are
subsidising 97 per cent of the
population, you are basically
subsidising people who are paying
for it themselves.
Rahul effect: Centre hikes
subsidised LPG cylinder cap from 9
to 12
Congress Vice President Rahul
Gandhi had called for an increase
in the number of subsidised LPG
cylinder on January 17 and 13 days
later the Union Cabinet fulfilled his
demand. The Cabinet on Thursday
approved the raising of subsidised
LPG cylinder cap from 9 to 12 per
connection.
Union Petroleum and Natural Gas
Minister Veerappa Moily said the
annual subsidy burden as a result
of increasing the number of
subsidised LPG cylinders will be
about Rs 80,000 crore.
He said that 99.2 per cent
consumers are covered under the
scheme and the subsidy burden will
increase by Rs 5000 crore. "The
Cabinet today decided to increase
the subsidised cylinders to 12,
starting from February 1. This
would be one cylinder every month
on subsidised rates," said Moily.
Ibnlive.in.com



India is full of people wanting freebies. We will never improve unless this fucking policies like FSB, reservarions etc are discarded.

"Give a man a biscuit, and he will ask for milk".

 

[Aarush]

So what's wrong in it?? They are politicians aren't they??

Everybody do some trick for votes just take Modi do u really believe Modi when he want to start collecting iron nails for statue of liberty just before elections or sing song with lata in Mumbai.

first i wil thank u that you admit that its a trick..
Second ,is congress taking all economical dececion to just please rahul gandhi.? And only just before election.

Third they said that due to uncertain and volatile market, they are reducing lpg no from 12 to 9 and suddenly things improved,
is'nt create a doubt?
Don't u think watever rahul is wishing is happening..from amedement in support of corrupt politician to lpg.
And please dnt drag modi here, i support person not party.

Modi is culprit of 2002 riot despite of clean chit from court and congress is saint even after 1984 riot.. What a irony.