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Updated: September 16, 2012 10:12 IST

LPG subsidy: AP minister comes out with formula

Special Correspondent
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C. Ramachandraiah. Photo: By Arrangement
The Hindu C. Ramachandraiah. Photo: By Arrangement

Incremental revenue generation from diesel, LPG should be diverted as subsidy to reduce burden on common man: Ramachandraiah

Endowment Minister C. Ramachandraiah has been quick in coming out with calculations to show how the State government can easily supply LPG cylinders at subsidised price to common man beyond the cap of six cylinders imposed by the Centre.

His formula is simple which he explained in a letter to the Chief Minister N. Kiran Kumar Reddy here on Saturday.

After the price of diesel was increased by Rs.5 a litre, the government will earn an additional Rs.1.50 a litre, thanks to 22 per cent VAT on the increased price. With 5,140 lakh litres of diesel sold a month in the State, the additional revenue to the State would be Rs.900 crore, he said.

The incremental revenue generation from diesel and LPG should be diverted in the form of subsidy to reduce the burden on the common man for consumption of additional LPG cylinders over and above the six cylinders for domestic purpose.

Mr. Ramachandraiah said that on an average, a family of four members would require nine LPG cylinders per year. With the Centre giving only six cylinders on subsidised rate of Rs.400 each, the State could bear the subsidy burden for the remaining three cylinders which would cost Rs.750 each. The government would require Rs.1,050 crore to support the common people in the use of cylinders required for them in a year at the old rate.

Idea seems good, BUT make sure the folks that need extra cylinders are REAL users; mostly the lower section getting priority on gas connection, TRY and sell the cylinders to truck car owners for use in their vehicles with or without permit fot its usage; make money; all privileges extended to weaker sections must be supervised and must prevent the gesture going other way round !

from:  Alagesan
Posted on: Sep 18, 2012 at 22:52 IST

MPs and MLAs including President PM and other cabinet ministers can subject themselves to this 6 cylinder limit so that Aam Admi will be assured of fair treatment in a democratic set up.Once when the US President presented himself at a school in US a kindergarden student asked him to show his ID.Special powers of our netas should be either curbed or given up in such issues .Otherwise the term Super power India will remain on paper only.

from:  meenakshisundaram
Posted on: Sep 17, 2012 at 06:00 IST

This is indeed a good suggestion by the minister who seems to be a
genuin leadre who thinks for the people.But to add to this suggestion
this facility may be extended upto the middleclass only and not for
reacher class whose details will be available with the govt.or dealer.In
that case govt will have some amount left for other welfare purposes.

from:  SWapan Kumar Nag
Posted on: Sep 16, 2012 at 22:51 IST

At last a politician who used his brains for the people. Kudos !!

from:  Sandeep
Posted on: Sep 16, 2012 at 22:33 IST

It is a good idea...but will the state government be courageous enough to forgo the wind fall revenue that has fallen in its lap due to center's action? Bur again there is every justification to exclude "affluent community" from getting this benefit and extend it only to those who deserve it by fixing certain income criteria. But let us first find out whether the government's often given-out declarations about the quantum of subsidies they claim to be doling-out is correct or not. Let them appoint a fact finding Cost-accounting/experts committee headed by a judicial authority to arrive at the actual subsidy-figure.

from:  Rayudu kowtha
Posted on: Sep 16, 2012 at 21:07 IST

Minister C. Ramachandraiah has a very good propsal for all the state govts. If only the CM's think about it then no one will face any problem regarding the Gas issue for the centre govt.is sure that the ruling congress will not be in power in 2014 only they are trying to make money in all ways.

from:  ajerome
Posted on: Sep 16, 2012 at 15:11 IST

I admire the Minister for coming out with pragmatic solution and perfect
assessment of the requirement of LPG cylinders by a family of four. My
family consists four members and one cylinder runs for 45 days average.
So I decided that for 2 more cylinders i can afford to buy at Rs.750/-.
At times we have to support the government if the accrued benefit goes
honestly to people who are much below than our economic level.

from:  mvrangaraajan
Posted on: Sep 16, 2012 at 14:50 IST

This is a good idea of keep the common people happy.

from:  Ibrahim Hussain
Posted on: Sep 16, 2012 at 12:42 IST
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