Date:01/01/2009 URL: http://www.thehindu.com/2009/01/01/stories/2009010156930100.htm

Front Page

Six lakh LPG connections released

N. Ravi Kumar

CHENNAI: The Union Ministry of Petroleum and Natural Gas has sanctioned release of six lakh new liquefied petroleum gas ((LPG) connections by oil marketing companies during 2008-09 under the State government’s ‘free gas connection and gas stove’ scheme.

Besides being two lakh connections short of the government’s request, the clearance is subject to conditions, including the one that the oil marketing companies be authorised to stop supplies or terminate the connection to the below poverty line beneficiaries, if they were found diverting the cylinder.

Putting a cap on the number of refill supplies, the Ministry has said a maximum of six cylinders per connection a year should be released. Another condition is that “beneficiaries residing in thatched-roof hutments should not be considered for the release.”

Sources in the oil industry said the conditions were important for ensuring safety and preventing the misuse of the heavily subsidised product.

Though the State government had written in August, seeking release of the connections for continuation of the scheme, the Ministry communicated the decision only earlier this month.

The sources attributed the time taken to the crude prices, which increased manifold earlier this year. The letter addressed to the Secretary, Cooperation, Food and Consumer Protection Department, said the oil marketing companies had said the release of new connections required additional resources towards the equipment (cylinders) and augmenting the LPG bottling capacities for regular service to the customers. “However, notwithstanding the difficulties being faced, OMCs will be releasing six lakh new LPG connections to Tamil Nadu…” The connections would be in addition to the regular expansion of LPG coverage in the State, the Ministry said.

Though the State had recently dispensed with the requirement that households seeking new LPG connections have ration cards, the Ministry said: “The BPL connections would be released only to the ration-card holders as per the order issued by State government.”

Another condition is that only the woman member of the household be issued the LPG connection.