Rs 42,000 crore approved for LPG subsidy, many decisions approved in Modi cabinet

New Delhi (The Uttam Hindu) – The Union Cabinet meeting was held on Friday under the chairmanship of Prime Minister Narendra Modi. Five major decisions were taken in the meeting, which mainly includes approval of a package of Rs 52,667 crore. In this package, special emphasis has been laid on LPG, education, infrastructure and development of the Northeast region. The government has made a provision of Rs 12,060 crore to strengthen the Pradhan Mantri Ujjwala Yojana. The central government has decided to provide assistance of Rs 4,250 crore under the special development package of Assam and Tripura of the Northeast under the existing central scheme. Giving this information in a press conference here on Friday after the meeting, Information and Broadcasting Minister Ashwini Vaishnav said that four new components have been approved with a total outlay of Rs 2450 crore. This scheme is specifically focused on Assam and Tripura of the Northeast and aims to promote equality there through various means. He said that the Central and State Government will give Rs 500 crore for the development of infrastructure in tribal dominated villages and areas of Assam as per the Memorandum of Settlement (MoS) signed with the tribal groups of Assam. As per the MoU with Dimasa National Liberation Army, Dimasa People's Supreme Council groups of Assam, Rs 500 crore will be given for the development of infrastructure in the North Cachar Hills Autonomous Council area of the National Liberation Army or Dimasa People's Supreme Council.

The Union Cabinet has approved proposals worth Rs 42,000 crore for LPG subsidy in two separate decisions. Ashwini Vaishnav said that the beneficiaries of the Ujjwala scheme will be given a subsidy of Rs 300 per cylinder on nine refills in a year in the current financial year 2025-26. A provision of Rs 12,000 crore has been approved for this. Earlier, a subsidy of Rs 300 per cylinder was being given on 12 refills in a year from October 2023. The subsidy will benefit 10.33 crore beneficiaries of the scheme. To increase refills under the Ujjwala scheme and provide relief to poor consumers, the government had introduced a targeted subsidy of Rs 200 per cylinder on 12 refills annually in May 2022, which was increased to Rs 300 in October 2023.

Apart from this, the Cabinet has also approved a provision of Rs 30 thousand crore to compensate the loss incurred by the oil marketing companies due to price control of domestic LPG cylinders. According to official information, domestic gas cylinders are supplied at a controlled price so that there is no undue burden on the common consumers. Due to the high prices of LPG in the international market in the financial year 2024-25, all the three public oil marketing companies have suffered huge losses in this item and are still incurring losses.

This amount will be paid in 12 installments to the three oil marketing companies Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation. The Ministry of Oil and Natural Gas will decide how the amount will be divided among the companies.