State-run petroleum companies may share additional financial burden of the Delhi government's ambitious scheme to provide Liquefied Petroleum Gas (LPG) connection to poor people.
The state government initiated Kerosene Free Delhi Scheme to replace completely kerosene used by BPL or Antyodaya families for cooking purposes with LPG.
In August, the state government launched the scheme but it soon came to a grinding halt following increase in security deposit for issue of new LPG connection. The security deposit for new LPG connection was increased from Rs 1,400 to Rs 1,600.
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 Rs 700 per connection.
Following a request from the Delhi government, Petroleum Minister Veerappa Moily allowed raising financial contribution of oil PSUs to the scheme.
With the approval of the minister, the oil companies would share the increased security deposit on equal basis. Moily readily agreed to this and issued orders wherein oil PSUs would provide Rs 800 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.