Govt Looks to Pump Rs 30k Crore in LPG Production, Distribution

New Delhi: The government is eyeing close to Rs 30,000-crore investment for expansion of LPG production and distribution network in next three years as it widens cooking gas coverage by giving out a record number of connections.

As many as 6 crore connections have been given in last three years, taking LPG to 72.84 percent of the population. The LPG coverage was just over 50 percent when the NDA government took office in May 2014, he said.

Increasing LPG coverage is part of the government's plan to cut on the use of polluting firewood and liquid fuel as medium of cooking. The use of LPG not just help environment but also increases productivity and prevent health hazards.

"When we took office, there were about 14 crore active LPG connections. In three years, this has gone up to 20.08 crore," he said.

Under the scheme, the government bears the cost of Rs 1,600 for getting the connection.

"PMUY was launched on May 1, 2016 with a target to provide 5 crore connections in three years. The first year target was 1.5 crore. But we have done 2.2 crore connections in the first year," he said.

Pradhan said his ministry is looking at raising the target of free LPG connections but a decision will be taken after consulting the finance ministry which has to provide the financial support.

For the 5 crore connections, Rs 8,000 crore was provisioned.

He said PMJY initially targeted less LPG coverage states of Uttar Pradesh, Bihar, West Bengal, Madhya Pradesh and Chhattisgarh.

As many as 56.05 lakh connections under PMJY have been distributed in Uttar Pradesh, taking LPG coverage to 74.5 percent of the state population from 53 percent previously. The state now has LPG coverage higher than the national average. In Bihar 28.97 lakh new connections have taken the coverage to 45.5 percent and West Bengal now has a coverage of 67 percent after 29.12 lakh new connections were released.

Pradhan said LPG consumption is growing in double digits with half of the demand being met through imports. "To cater to this, we envisage an investment of the order of Rs 25,000 crore to Rs 30,000 crore in laying LPG pipelines, expanding bottling capacity and increasing import capacity," he said.