NEW DELHI: To ensure the responsible use of public money and provide LPG cylinders to more poor families in rural India, the Government of India is considering plans to take rich households out of the LPG subsidy scheme.
The Government is yet to take a decision over it as the plans are in still in the initial stage of discussion. The debate is over the criteria required to qualify for the LPG gas cylinder subsidy. Sources said that people who can afford a cylinder will be stripped off the subsidy scheme if they are paying income tax and if their income falls above a specified income bracket.
Speaking at the Delhi Economics Conclave, organized by the Finance Ministry, Union Oil Minister Mr Dharmendra Pradhan said, “I feel that the subsidy must be given to the people only who entitles to receive it. I would like to request the Finance Ministry to determine a income bracket to specify the people who can receive the LPG Subsidy”.
“The question on the criteria required to be eligible for receiving LPG subsidy must be debated before moving ahead and the subsidy must be given to those only who cannot afford it”, the Oil minister added.
There was a similar proposal during the UPA-2 regime, when the then Oil minister drafted a proposal to determine the eligible people for receiving the LPG subsidy. The draft proposal said that people who own a Car or two motor vehicles are not eligible to get the subsidy from the Government, the Times of India reported.
However, the draft was later sidelined by the UPA-2 Government as it received opposition from its allies and other political parties. At present, a household can receive 12 subsidized LPG cylinders in a year.
Earlier, accepting the request of the Prime Minister Narendra Modi, more than 42.2 lakh people have voluntarily given up their LPG subsidy.