The subsidy is paid upfront and shoppers use this to purchase LPG refills.
LPG prospects of Bharat Petroleum Company Restricted (BPCL) will proceed to get cooking fuel subsidy post-privatisation of the nation’s second-biggest gasoline retailers, Oil Minister Dharmendra Pradhan mentioned on Friday.
“Subsidy on LPG is paid to shoppers immediately and to not any firm. So the possession of the corporate that sells LPG just isn’t of any materials consequence,” Mr. Pradhan advised PTI.
The federal government provides 12 cooking fuel (LPG) cylinders of 14.2-kg every to households in a 12 months at a subsidised price. This subsidy is immediately paid into the financial institution accounts of the customers.
The subsidy is paid upfront and shoppers use this to purchase LPG refills which might be out there solely at market worth from sellers of oil advertising corporations – Indian Oil Company (IOC), BPCL and Hindustan Petroleum Company Restricted (HPCL).
The second a refill is purchased utilizing the subsidy, one other installment is transferred into the consumer financial institution accounts.
Mr. Pradhan mentioned the LPG subsidy cost is completed digitally to all verified prospects.
“Since it’s paid on to shoppers, it doesn’t matter if the servicing firm is public sector or non-public sector,” he mentioned. “LPG subsidy will proceed as earlier than to BPCL shoppers even after disinvestment.”
The federal government is promoting its total 53% stake together with administration management in BPCL. The brand new proprietor will get 15.33% of India’s oil refining capability and 22% of the gasoline advertising share.
It additionally owns 17,355 petrol pumps, 6,159 LPG distributor businesses and 61 out of 256 aviation gasoline stations within the nation.
BPCL providers 7.3 crore out of 28.5 crore LPG shoppers within the nation.
“All these will proceed to get a authorities subsidy,” Mr. Pradhan mentioned.
Requested if the shoppers of BPCL will after some years be transferred to IOC and HPCL, he mentioned there isn’t any such proposal as of now.
“Once we pay a subsidy to shoppers immediately, the possession doesn’t are available in the best way,” he mentioned.
Privatisation of BPCL is a part of plans to lift a document ₹ 2.1 lakh crore from disinvestment proceeds in 2020-21 (April 2020 to March 2021).
BPCL operates 4 refineries in Mumbai (Maharashtra), Kochi (Kerala), Bina (Madhya Pradesh), and Numaligarh (Assam) with a mixed capability of 38.3 million tonnes every year, which is 15.3% of India’s complete refining capability of 249.8 million tonnes.
Whereas the Numaligarh refinery can be carved out of BPCL and bought to a PSU, the brand new purchaser of the corporate will get 35.3 million tonnes of refining capability – 12 million tonnes Mumbai unit, 15.5 million tonnes Kochi refinery and seven.8 million tonnes Bina unit.