Govt sraps Rs 3.5 crore bogus LPG connections, saves Rs 21,000 crore subsidy in 2 years - News Summed Up

Govt sraps Rs 3.5 crore bogus LPG connections, saves Rs 21,000 crore subsidy in 2 years


Based on these figures, the saving as a result of blocking of 3.34 crore connections is estimated at over Rs 14,818 crore in 2014-15. Sales volume has risen from 1,051 TMT (thousand metric tonnes) in 2014-15 to 1,465 TMT in 2015-16. NEW DELHI: The government has saved a subsidy outgo of Rs 21,264 crore in the last two fiscals by weeding out more than 3.5 crore bogus or duplicate LPG (cooking gas supplied in cylinders) connections, the oil ministry said on Wednesday.Each registered LPG consumer is eligible for 12 subsidised cylinders in a year after which refills are supplied at market price. For 2015-16, the saving has been estimated at Rs 6,443 crore, with the number of blocked consumers rising to 3.56 crore, the ministry said in a statement.The ministry said elimination of bogus and duplicate connections have resulted in a 39% increase in the sale of non-subsidised cylinders for commercial use. Taking this as the basis for its calculation, the ministry said the saving has been estimated on the assumption of subsidy that would have been spent on cylinders supplied to the ghost 3.34 crore 'consumers' in a year had they not been blocked.The ministry has pegged the annual average subsidy on each cylinder at Rs 369.72 for 2014-15 and Rs 150.82 for 2015-16.


Source: Times of India July 21, 2016 17:02 UTC



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