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Rajiv Gandhi Gramin LPG Vitaran Yojana (RGGLVY)

The 'Vision-2015' adopted for the liquefied petroleum gas (LPG) sector, inter-alia, focuses on raising the population coverage of LPG in rural areas and areas where coverage is low. The RGGLVY for small-size LPG distribution agencies was launched on 16 October 2009. This scheme targets coverage of 75 per cent of the population by 2015 by release of 5.5 crore new LPG connections. Oil marketing companies (OMCs) have issued advertisements to set up 2329 LPG distributors in 22 States, namely Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Chattisgarh, Gujarat, Himachal Pradesh, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, Manipur, Mizoram, Meghalaya, Nagaland, Orissa, Rajasthan, Tamil Nadu, Tripura, Uttar Pradesh, West Bengal, and Pondicherry. Out of this, 75 LPG distributors have already been commissioned. Selection for the rest of the locations is in progress as per policy. The price of administered pricing mechanism (APM) gas produced by ONGC and OIL has been increased from June 2010 to the level of US$ 4.2/mmbtu, less royalty, which is equal to the price of gas produced by NELP operators.

Free LPG Connections to BPL Rural Households

A proposal for providing one-time financial assistance to BPL households for acquiring new LPG connections is under consideration of the Government. Under the proposed scheme, the Government and Oil Marketing Companies would provide one-time assistance of Rs 1400 for acquiring a new LPG connection to a BPL family. The scheme would cover all eligible households in the BPL list of the State Government/Union Territory. About 32-40 lakh new LPG connections are to be released annually under this scheme.

The annual financial implication of the scheme is estimated to be Rs 490 crore. The proposed budgetary support has been restricted to the extent of 50 per cent of the total funds required. The remaining 50 per cent would be partly drawn from the Corporate Social Responsibility Funds (CSRFs) of the six major oil companies, namely ONGC, IOCL, BPCL, HPCL, OIL, and GAIL and partly borne by the three oil marketing companies (OMCs) namely IOCL, HPCL, and BPCL in the ratio of LPG connections released to BPL households by each company. It is expected that the OMCs will incur Rs.6.00 crore during the current financial year.

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