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Aadhaar-linked LPG subsidy transfer put on hold
Acceding to Rahul Gandhi’s demand to raise the annual cap on
subsidised LPG cylinders, the Cabinet Committee on Political
Affairs on Thursday raised the quota from nine to 12.
It also decided to put on hold the Direct Benefit Transfer Scheme
for LPG under which consumers receive subsidy in cash. The
scheme comes into effect from February 1. Every household will
get one cylinder each in February and March in addition to the
quota of nine cylinders. From April, they will be entitled to 12
cylinders, one cylinder a month at subsidised rates.
At the All India Congress Committee session on January 17, Mr.
Gandhi had appealed to Prime Minister Manmohan Singh to
increase the quota to 12 cylinders.
Petroleum and Natural Gas Minister M. Veerappa Moily said the
hike would result in an extra outgo of Rs.5,000 crore annually
toward subsidy. He said the DBTL has been suspended as there
were complaints about the implementation of the scheme. A
committee will look into them.
The CCPA decision goes against the Finance Ministry’s letter to the
Petroleum and Natural Gas Ministry in December last year, as
reported in The Hindu on January 23, to not breach the
expenditure ceiling under any circumstances for the current
financial year.
Terming the increase in quota as “misdirected subsidies”, RBI
Governor Raghuram Rajan on Thursday said the move would end
up benefiting people who can afford to pay market rates.