Question : LPG Connections

(a) the details of guidelines/eligibility criteria for providing LPG connections to the people in the country including connections to Below Poverty Line people under CSR fund;

(b) whether there is constant increase in demand for LPG connections in the country and if so, the number of persons who applied for LPG connections and the connections provided/waiting list during the last three years and the current year, State/ UT-wise;

(c) whether the Government has stipulated any time-frame for providing LPG to every household/each gram panchayat level and if so, the details thereof along with steps taken by the Government to clear the waiting list of LPG connection during the above period, State/UT-wise;

(d) the details of demand and supply of LPG in the country along with the efforts made by the Government to fulfil the requirement and remove the shortage of LPG in the remote and rural areas of the country, State/UT-wise; and

(e) the number of persons who have given up their LPG subsidy and per month subsidy being saved as a result thereof?
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Answer given by the minister

MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI DHARMENDRA PRADHAN)

(a) As per the Liquefied Petroleum Gas (Regulation of Supply and Distribution), (Amendment) Order 2014, a person or household can have only one LPG connection under Public Distribution System(PDS). Prospective customers, who fulfill the above condition, are required to approach the concerned LPG distributor/RGGLV and submit duly filled in KYC (Know Your Customer) form along with documents in respect of valid Proof of Identity and valid Proof of Address. After carrying out de-duplication exercise and after submission of requisite declaration by the prospective customers along with payment of applicable security deposit and other service charges, LPG connections are released.

Further, to facilitate LPG coverage for BPL families in the country, a scheme for providing one time grant to BPL families for release of new LPG connection through Regular LPG distributors and Rajiv Gandhi Gramin LPG Vitaraks is in operation in the country. As per the scheme, the security deposit (upto Rs. 1600/-) for one cylinder and Pressure Regulator is paid from the fund created for this purpose.

(b) & (c) Demand for new LPG connections and release of the same to prospective customers is a continuous process. State/ UT-wise details of LPG domestic connections released during each of the last three years and during the month of April to June 2015 along with details of waiting list for new connections as on 01.07.2015 is at Annexure-I.

As per the Vision 2015 for the Oil Industry on “Consumer Satisfaction and Beyond” approved by MoP&NG in 2009 and further discussions on Perspective Plan, National LPG coverage is to be increased to 75%, with the district & State LPG coverage of minimum 50% & 60% respectively and at least one distributor in each block. To achieve this target, OMCs are continuously appointing new LPG distributors and more than 97 % of blocks are covered by at least one LPG distributorship.

(d) Indigenous production of LPG in the country is lower than the demand. Hence, OMCs import LPG to meet this deficit and maintain smooth supplies of LPG in the country. Such imports are planned on calendar year basis depending upon projected LPG demand and availability of ex-indigenous sources. For calendar year 2015, demand and availability of LPG (on Industry basis ) in the country is as under :-

Demand : 19.0 MMT
Indigenous availability : 10.2 MMT
Import tied up : 8.8 MMT

OMCs have reported that the supply- demand scenario is monitored on regular basis and additional imports are tied up in case of spurt in demand or reduction in indigenous production.

In order to increase supply of LPG particularly in remote and rural areas of the country, OMCs have commissioned 4694 RGGLVs till 30.06.2015. State/UT-wise details of RGGLVs commissioned as on 01.07.2015 is at annexure-II

(e) As on 28.07.2015, total 13,86,885 consumers have voluntarily given up/surrendered subsidy on LPG. Assuming that each of these customer consumes an average of 8 cylinders per annum and at the average subsidy rate of Rs. 200/- per cylinder, the saving amounts to Rs. 2,21,90,16,000/- approx.
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