While the ongoing exercise by the Food and Civil Supplies Department to match RR numbers with domestic LPG connections is expected to considerably downsize the customer base, public sector oil companies are yet to decide on the proposed cut in subsidised supply of the refills.
“Rationing of subsidised refills to four or six a year or offering subsidised refills on the basis of annual income is still at the discussion stage and it is too premature to say anything on this,” oil company sources told The Hindu. The sources added that the ongoing government scrutiny was worthy of appreciation.
“The process adopted by the department to eliminate bogus ration cards has also benefited oil companies. Elimination of dubious domestic connections will definitely benefit genuine customers who will be assured of timely supply of refills,” the sources said.
Terming the department's initiative as “a massive and a first-time exercise in the country,” the sources said that though the oil companies had been sending postal communications to customers to ascertain their address; periodically raiding commercial establishments to check diversion of domestic LPG, they didn't make much of a dent because of lack of manpower. The present exercise will ensure one connection per household, the sources noted.
Asked if the oil companies favoured rationing of subsidised refills and if they would demand a similar weeding out exercise in other States to eliminate bogus domestic LPG connections, the sources said that it was up to the Union Government to take a policy decision on the rationing. As for the latter, others may not have a database of RR numbers as in Karnataka.
Linked to Aadhaar
The sources pointed out that the Aadhaar number-based domestic LPG distribution will be in place across the country in a few years. Its pilot project is under way in Mysore, covering three distributors and 80,000 customers. Once this system is in place, diversion of domestic LPG for other purposes could be eliminated while ensuring proper disbursement of subsidy to the customer.
The breakup
Public sector oil companies have a network of distributors to provide domestic LPG across the State. Bharat Petroleum Corporation Ltd. (BPCL) has 129 distributors and 19.56 lakh customers in the State and 34 distributors and 7.5 lakh customers in Bangalore.
Hindustan Petroleum Corporation Ltd. (HPCL) has 179 distributors and 24.7 lakh customers in the State and 36 distributors and 6.96 lakh customers in Bangalore. Indian Oil Corporation Ltd. (IOCL) has 225 distributors and 32.4 lakh customers in the State and 57 distributors and 12.95 lakh customers in Bangalore.
These oil companies supplied 542.9 lakh domestic LPG cylinders across the State in 2010-11, with a subsidy of about Rs. 250 per cylinder.
New connection
Should someone want a new domestic connection, he or she should have a ration card as per a State Government directive because LPG comes under essential commodities.
