20% increase in commercial LPG allocation to states

NEW DELHI: The Petroleum Ministry on Friday increased commercial LPG allocation to states by 20% to meet the additional demand of industrial units such as steel, automobile, textile and chemicals.With this increase, total commercial LPG allocations now reach 70% of pre-conflict levels.

In a letter to chief secretaries of states and union territories, Petroleum Minister Neeraj Mittal said that only those industrial units that have registered with the Oil Marketing Corporation, declared an end to the use of gas cylinders and have signed up to join the pipeline gas network will be eligible for additional quota of LPG. Certain industrial units may be exempted from such requirements if they use LPG for special purposes that cannot be replaced by natural gas, he added.“Additional allocations should be allocated on a priority basis to labor-intensive industries such as steel, automobiles, textiles, dyes, chemicals and plastics, and to support other important sectors. Among them, priority should be given to processing industries or industries that require LPG for special heating and cannot be replaced by natural gas,” Mittal said in the letter.When the conflict began, the Center temporarily stopped the supply of commercial LPG cylinders, after which it allocated 20% of the average monthly demand and left it to states and union territories to decide on priorities. Later, it added up to 10 per cent additional quota for states that allowed city gas distribution companies to reform and streamline their operations to expand piped gas networks, followed by an additional 20 per cent quota for allotment to the hotel industry.Mittal said some states have already made full or partial reforms to get additional quota of up to 10% and urged others to take advantage of this quota at the earliest.