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Oil firms to pay Rs 800 for every free LPG connection in Delhi

Friday, 16 November 2012 - 8:29pm IST | Place: New Delhi | Agency: PTI
The scheme was launched with much fanfare in August but soon came to a grinding halt following increase in security deposit for issue of new LPG connection.

Union petroleum minister Veerappa Moily on Friday approved raising financial contribution of oil PSUs to the free LPG connection being provided by the Delhi government to poor using kerosene as cooking fuel. Under the scheme to make Delhi kerosene-free city, oil PSUs and Delhi government foot the cost of providing the new LPG connection.

The security deposit for new LPG connection was recently increased from Rs1,400 to Rs1,600. Following this, Delhi chief minister Sheila Dixit on Friday met Moily with a request that the increased security deposit should be shared on equal basis which would re-start the process of releasing new connections to BPL/Antyodaya families under Kerosene Free Delhi Scheme of the Delhi NCT government.

Sources said Moily readily agreed to this and issued orders wherein oil PSUs would provide Rs800 per connection from their CSR Budget. An equal amount will be provided by the Delhi government. This will help re-start the ambitious scheme under which 3.56 lakh households are to get LPG cylinder and a gas stove free of cost.

The scheme was launched with much fanfare in August but soon came to a grinding halt following increase in security deposit for issue of new LPG connection. Oil PSUs and Delhi government were to share the security deposit in 50:50 ratio but the increase in the fee upset this arrangement as state-owned firms had no sanctions to provide more than Rs700 per connection.


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