Shri Ram Naik, Minister
of Petroleum and Natural Gas has, on the occasion of Republic
Day 2003, approved the proposal to provide subsidised LPG for
all School & College Hostels, Government/Municipal Hospitals,
Social Welfare institutions like child/women welfare homes, old
age homes, homes for disabled etc., and for implementing Mid-day
Meal Schemes. 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orders/circulars were withdrawn and the subsidised LPG became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. These
were earlier eligible for getting subsidised LPG at domestic rate
of about Rs. 250 for 14.2 Kg. Cylinder. The price of LPG nearly
doubled to about Rs. 34.2 per kg. from about Rs. 17.6. per kg.
In view of the
hardships faced by the residents of hostels in educational institutions,
patients in Government/Municipal Hospitals and inmates of social
welfare institutions like Children houses, old age homes, houses
for disabled, etc., Shri Ram Naik decided to restore the availability
of subisidised LPG to these institutions. Out of about 7.5 million
tonnes of total consumption of subsidised LPG, the estimated supplies
to special categories like charitable institutions, educational
institutions, hospitals etc., accounts for less than 1.5%. Coming
at a time when Nation is celebrating the Republic Day 2003, this
decision would provide much required relief to these institutions
working for noble causes as the cost of procuring LPG had gone
up for them substantially.
