#GiveItUp: Bollywood megastar Amitabh Bachchan gives up LPG subsidy

Heeding to Prime Minister Narendra Modi's call, superstar Amitabh Bachchan has given up LPG subsidy and will from now on, buy cooking gas at market price. Bachchan is the latest to join the #GiveItUpMovement where users who can afford to pay market price, opt out of scheme to get LPG cylinders at subsidised rates.

Oil Minister Dharmendra Pradhan said "such a noble gesture by Shri Bachchan would surely inspire many others to join #GiveItUp, a movement committed to bring smiles to millions of poor households by providing them access to clean fuel (LPG)." As on date, more than 30 lakh people have surrendered their LPG subsidy in response to the appeal made by Modi on March 27, an official statement said.

Modi also promised that the money saved from this effort will be utilised to provide LPG connection to poor households. Assuming that each of these consume an average of 8 cylinders per annum and at the average subsidy rate of Rs 200 per bottle, the saving amounts to about Rs 480 crore.

Presently, a household is entitled to receive subsidy to buy up to 12 cylinders of 14.2-kg each every year. Cash advance is transfered into the beneficiary account on first enrollment and another installment is given the moment it is used to buy a LPG refill.

LPG subsidy payout from Union Budget in 2014-15 was Rs 40,591 crore as against a dole of Rs 52,231 crore in 2013-14.