news Monday, April 20, 2015 - 05:30

A month after Prime Minister Narendra Modi asked people to give up their LPG subsidies if they could afford market rates, nearly three and a half lakh people have “given it up”. Prime Minister Narendra Modi initiated the "Give It Up" campaign last month at the Urja Sangam – an international energy summit, saying: "Money we save from giving up LPG subsidy is the money we will use for the poor, so that they have access to clean energy too.” Within a month, 3,52,038 consumers have surrendered their subsidised LPG connections. For the convenience of the consumers, oil and gas companies are offering different options to surrender his/her connection – they can either log in to government’s website, or fill out an application and hand it over to the local distributor, or send an email to the agency. According to data available on their respective websites, 1,00,740 consumers have surrendered their connection to Hindustan Petroleum (HP), 2,07,917 to  Indane (Indian Oil Corporation) and 43,381 to Bharat Petroleum (BP) as on April 20. With the surrender of each connection, the government saves Rs 220 per cylinder (the rate as of today, it varies each month). A consumer on an average utilizes eight cylinders per annum. Which means, the government will approximately save Rs 1760 per consumer. At this rate, the government would be saving nearly Rs 62 crores in subsidy. For those whose connection are linked to their accounts through Aadhar, the subsidy given via Direct Benefit Transfer would be stopped once they surrender their connection. Indian Oil Corporation has under taken retail promotion of this campaign by displaying banners at petrol pumps urging citizens to join the "Give It Up" campaign. Depute DGM of IOC Karnataka region, Abhijit Dey, said, “Only 65% of India’s population has access to LPG connections while 35% of them cannot to afford to buy one. With the 'Give It Up' campaign, the subsidy can be directed towards poorer sections in order to promote the use of clean fuel.” Recently, industry leaders Anand Mahindra, Gautam Adani, Sajjan Jindal, Cyrus Mistry of the Tata group, Kishore Biyani of Future group and others personally appealed to their employees to give up subsidized LPG connections  

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