Press Information Bureau

Government of India

Ministry of Petroleum & Natural Gas

28-December-2015 16:06 IST

At present, there are 16.35 crore LPG consumers in the country. With the implementation of the PAHAL Scheme (DBTL), the subsidy is being transferred directly to the Bank Account of 14.78 crore LPG Consumers. The objective of the scheme was to ensure that the subsidy benefits go to the targeted group. The Government had also given a call to the well-to-do households for voluntarily giving up LPG subsidy. So far, 57.50 lakh LPG consumers have opted out of LPG subsidy voluntarily heeding the call given by the Prime Minister. The subsidy saved from the ‘GiveitUp’ campaign is being utilized for providing new connections to the BPL families under the ‘Giveback’ campaign. This enables provision of LPG, a clean fuel, to poor households by replacing the conventional fuels such as kerosene, coal, fuel wood, cow dung, etc. relieving the poor of the hardships and health hazards from such fuels.

While many consumers have given up subsidy voluntarily, it is felt that consumers in the higher income bracket should get LPG cylinders at the market price. Therefore, the Government has decided that the benefit of the LPG subsidy will not be available for LPG consumers if the consumer or his/her spouse had taxable income of more than ₹ 10,00,000/- during the previous financial year computed as per the Income Tax Act, 1961. In keeping with the approach of trusting the citizens, this will be given effect to initially on self-declaration basis while booking cylinders from January 2016 onwards.

YKB/Rk

LPG subsidy eligibility limited by taxable income; high income consumers will be ineligible and must self declare when booking. The Government will withhold LPG subsidy from any consumer if the consumer or his/her spouse had taxable income exceeding Rs. 10,00,000 in the previous financial year as computed under the Income Tax Act, 1961; this ineligibility will be effected initially on a self declaration basis when booking cylinders from January 2016, with subsidy transfers executed through the DBTL/PAHAL mechanism and savings redirected to provide connections to low income households.