Ad Here  
January
February
March
April
May
June
 
 
AKKINENI NAGESWARA RAO The national power grid at last! The religion named Football Matchless at 70 ‘Big ideas’ of Modi… No lessons learnt What’s the fallout for 2014? Netherlands to join India in Make India campaign and Smart City projects We pull each other down needlessly... Foreign Investors’ get major relief from RBI 250 days of Modi government Demonnetisation or demonisation? Union Budget: Voices Spate of disinvestments by private sector too! Less government, better governance… Vibrant show by corporates Take a cue from western partners India Inc excited about Modi’s elevation Case for phasing out LPG subsidy... A spectacular Shanghai show Breakthrough Budget Business wanted Modi as PM. It’s time to back up. Service or dis-service In paper? Or in action? Brilliant Saeed Saab The helpless voter Mysuru – India’s cleanest city Electricity finance reform at last Whose money is it anyway? From Father India to Mother India Hey, CAs. Be more vigilant. Scientists’ responsibility to society Selective lobby session with Jaitley... One down, one to go Speed up the railways Happening Haryana Science diplomacy: bridge the world through science JAM – Jan Dhan, Aadhaar and Mobile It is attracting investments, stupid! Guzarathukars and Palkarars of Erode... Ooh la la...
 
Case for phasing out LPG subsidy...

The fall in crude oil prices has been an expected boon to the NDA-II government. This has resulted in reducing substantially the foreign exchange outgo on the import of crude and petroleum products, as also in doing away with the huge subsidies on diesel. By the same breath, there is the opportunity to do away with the subsidies  on LPG as well. The expectation of voluntary surrender of subsidy claim has been belied Tamil Nadu that was alert in making the maximum use of LPG connections offers an interesting example. The state has a colossal number of LPG consumers at around 1.54 crore. Statistically, at an average of 4-5 members per family, this points to the coverage of the entire households in Tamil Nadu with its population of around seven crores.

However, under the voluntary surrender scheme in Tamil Nadu less than 50,000 have opted out of subsidy. Today, the subsidy element to domestic consumers has dropped to just around Rs 154 per cylinder which should last, on an average, around 30-45 days. The present scheme also involves considerable expenditure in the provision of cash transfer through bank requiring sizeable administrative work. With crude prices still low, the government should think of abolishing the subsidy at this juncture as the users have been the beneficiaries of using this elegant and cheap  fuel.

Simultaneously the government should endeavour to provide piped gas that would bring about further economies and eliminate the cumbersome distribution through gas cylinders. Delhi and Mumbai could vouchsafe for the elegance and economy of such piped gas.  

Tamil Nadu has not been appreciating the economy and ecologically friendly LNG and LPG. The state has  been missing opportunities on gas by ignoring the construction of a gas grid. Gujarat, the largest user of LNG, provides the most striking example of the advantages of using gas by the industrial and domestic consumers.

Author :
Reported On :
Sector :
Shoulder :
RELATED NEWS
ABOUT IE
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
 
PRIVACY POLICY
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
TERMS AND CONDITIONS
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
 
CONTACT US
S-15, Industrial Estate,
Guindy,
Chennai - 600 032.
PHONE: +91 44 22501236
EMAIL: indecom1968@gmail.com