(FE)
The NITI Aayog has suggested to the Ministry of Petroleum and Natural Gas that eligible beneficiaries receiving subsidy on liquefied petroleum gas (LPG) should rather be given a ‘cooking subsidy’ through direct benefit transfer (DBT). While 4.6 crore LPG connections released under the Pradhan Mantri Ujjwala Yojana (PMUY) have led to smoke-free kitchens in rural India, the NITI Aayog in a note to the ministry said the ‘subsidy’ attached to LPG is creating distortions in adopting cleaner forms of fuel. The note advocates that piped natural gas (PNG) is the most efficient form of fuel in urban areas and biogas should be the preferred option in rural areas given availability of raw materials.
The think-tank envisages that beneficiaries should be provided cooking subsidy through the DBT and the freedom to decide on the cooking fuel. As per the current practice, customers eligible for subsidy buy LPG cylinders depending on the prevailing market price and the subsidy amount is then remitted to beneficiaries’ bank accounts. However, no such subsidy is provided for fuels other than LPG and kerosene.
