Government targets to pump Rs 30,000 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.

A record 3.45 crore LPG connections were given during the fiscal ended March 31, 2017, including 2.2 crore free connections to poor women, Oil Minister Dharmendra Pradhan told reporters here.

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

The main reason for the vast expansion is the Pradhan Mantri Ujjwala Yojana of providing free cooking gas connection of below poverty line (BPL) women.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.

The ministry is targeting 3 crore connections including 1.5-2 crore under PMJY during the 2017-18 fiscal and another 4 crore in the following year. This would help take LPG coverage to 95.49 per cent of the population.

"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.

Also, 10,000 new LPG distributors are envisages to be added. Of these, 4,600 have already been appointed, he said.