The subsidy is paid upfront and shoppers use this to purchase LPG refills.
LPG clients of Bharat Petroleum Company Restricted (BPCL) will proceed to get cooking gasoline subsidy post-privatisation of the nation’s second-biggest gas retailers, Oil Minister Dharmendra Pradhan stated on Friday.
“Subsidy on LPG is paid to shoppers straight and to not any firm. So the possession of the corporate that sells LPG shouldn’t be of any materials consequence,” Mr. Pradhan instructed PTI.
The federal government offers 12 cooking gasoline (LPG) cylinders of 14.2-kg every to households in a yr at a subsidised price. This subsidy is straight paid into the financial institution accounts of the customers.
The subsidy is paid upfront and shoppers use this to purchase LPG refills which might be accessible solely at market value from sellers of oil advertising and marketing corporations – Indian Oil Company (IOC), BPCL and Hindustan Petroleum Company Restricted (HPCL).
The second a refill is purchased utilizing the subsidy, one other installment is transferred into the consumer financial institution accounts.
Mr. Pradhan stated the LPG subsidy cost is completed digitally to all verified clients.
“Since it’s paid on to shoppers, it doesn’t matter if the servicing firm is public sector or non-public sector,” he stated. “LPG subsidy will proceed as earlier than to BPCL shoppers even after disinvestment.”
The federal government is promoting its whole 53% stake together with administration management in BPCL. The brand new proprietor will get 15.33% of India’s oil refining capability and 22% of the gas advertising and marketing share.
It additionally owns 17,355 petrol pumps, 6,159 LPG distributor companies and 61 out of 256 aviation gas stations within the nation.
BPCL companies 7.3 crore out of 28.5 crore LPG shoppers within the nation.
“All these will proceed to get a authorities subsidy,” Mr. Pradhan stated.
Requested if the shoppers of BPCL will after some years be transferred to IOC and HPCL, he stated there is no such thing as a such proposal as of now.
“After we pay a subsidy to shoppers straight, the possession doesn’t are available the best way,” he stated.
Privatisation of BPCL is a part of plans to boost a file ₹ 2.1 lakh crore from disinvestment proceeds in 2020-21 (April 2020 to March 2021).
BPCL operates 4 refineries in Mumbai (Maharashtra), Kochi (Kerala), Bina (Madhya Pradesh), and Numaligarh (Assam) with a mixed capability of 38.3 million tonnes each year, which is 15.3% of India’s complete refining capability of 249.8 million tonnes.
Whereas the Numaligarh refinery will probably be carved out of BPCL and offered to a PSU, the brand new purchaser of the corporate will get 35.3 million tonnes of refining capability – 12 million tonnes Mumbai unit, 15.5 million tonnes Kochi refinery and seven.8 million tonnes Bina unit.