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Tuesday, 11 December 2012

Election Commission objects to govt raising LPG cap to nine

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Election Commission objects to govt raising LPG cap to nine
Clean Media Correspondent

New Delhi, Dec 11 (CMC) The Election Commission has taken note of the government's move to increase the cap on subsidised LPG cylinders from currently six to nine and directed it to stop it forthwith.

Speaking to reporters in New Delhi, oil minister M Veerappa Moily said on Tuesday that the government will raise the cap on subsidised cooking gas (LPG) to nine cylinders per household in a year.

"I think it is likely to go up definitely from six (cylinders) to 9 (cylinders)," he said.

Stating that he has had two rounds of discussions with finance minister P Chidambaram on the impact of the decision to raise the cap, Moily said the government will have to provide an additional Rs9,000 crore annually if the cap is raised.

"We are working on that," he said on ways to mitigate the additional subsidy requirement. "We are working on certain formula to neutralise it," he added.

It was in September thet the government capped the supply of subsidised LPG to six cylinders per household in a year. Any additional requirement is to be bought at market price of Rs931 per 14.2-kg bottle.

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