New LPG Connections

Rajya Sabha

Indian Oil Corporation Limited (IOC) has not stopped the release of new LPG connections. New LPG connections are made available as soon as possible and in any case, within a period of sixty days. At present, new LPG connections are available for genuine domestic customers. As on 01.12.2008, Public Sector Oil Marketing Companies (OMCs) are serving 1042.2 lakh LPG customers in the country, copvering 53.8% of households as per 2001 Census, out of which IOC is serving 518.7 lakh LPG customers. OMCs have also reported that they have released 31.28 lakh new LPG connections in the country during the period April-November, 2008, out of which IOC has released 15.42 lakh new LPG connections.

Government had decided to issue bonds worth Rs. 35,289.50 crores to OMCs in respect of expected losses/under-realization for marketing sensitive petroleum products for the financial year 2007-08.

Further, Government decided to issue bonds worth Rs. 44,967 crores to OMCs in respect of under-realisation on marketing sensitive petroleum products for the first half of the year 2008-09.

Out of the total outstanding Bonds for Rs. 59,923.17 crores (including Bonds of Rs. 14,956.17 crores for the 4th quarter of 2007-08), Bonds for Rs. 22,000 crores were issued to the OMCs in November, 2008.

In addition to above, Government provides a fixed rate of subsidy from the Budget on domestic LPG and PDS kerosene. A provision for Rs. 2700 crore towards this subsidy has been made in the Budget for 2008-09.

This was stated by the Minister of State for Petroleum and Natural Gas Shri Dinsha Patel in a written reply to a question by Shri D. Raja, Member of Parliament in the Rajya Sabha today.

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RCJ/ls