SUBSIDISED LPG FOR NON-DOMESTIC
– EXEMPTED CATEGORY
Shri Ram Naik, Minister
of Petroleum and Natural Gas has approved the proposal to provide
subsidised LPG to the users under non-domestic exempted category
(NDEC). Following the dismantling of Administered Price Mechanism
(APM) with effect from 1.4.2.002, a number of administrative orders/circulars
were withdrawn and the subsidised LPG became available for only
domestic use. This resulted in sharp increase in the cost of procurement
of LPG to Rs. 650 for 19 Kg. Cylinder at commercial rates by the
consumers in these categories. They would now be getting subsidised
LPG at the rate of about Rs. 250 for 14.2 Kg. Cylinder. The price
of LPG for the NDEC consumer had nearly doubled to about Rs. 34.2
per kg. from about Rs. 17.6 per kg.
The consumers under
the NDEC category for supply of subisidised LPG were notified
by the Government in the year 1987. These include Government/
Municipal Hospitals, supplies to all Schools and Colleges for
Hostels or Mid-day Meal Schemes, Canteen attached to Government
offices or Local Bodies & their installations, Messes of Police,
BSF, CISF in addition to that of defence establishments, the canteens
run on co-operative basis under Cooperative Societies Act, Laboratories
attached to Schools, Colleges & Research Institutes and Charitable
Institutes registered under the Societies Act.
Out of about 7.5
million tonnes of total consumption of subsidised LPG, the estimated
supplies to NDEC consumers account for less than 2% of the subsidised
LPG. . This decision is expected to mitigate the hardships faced
by the NDEC consumers and the total subsidy component on this
account would be about Rs. 36 crore in a year.
