Election panel disapproves of Moily’s LPG remark

 News
Dec 122012
 

The Election Commission Wednesday expressed its “strong disapproval” of Petroleum Minister M. Veerappa Moily’s remarks on raising the cap on LPG cylinder suppl y ahead of the Gujarat elections and asked him to be “circumspect in future.”

Moily, whom the commission on Tuesday asked to explain his remark over LPG cap being increased from six to nine, in his reply to the commission Wednesday accepted that he made the announcement.

The commission said the remarks amount to violation of Model Code of Conduct as the first phase of the Gujarat elections are slated for Thursday. The second round is on December 17. Counting in both Gujarat and Himachal Pradesh, where polls were held Nov 4, will be on Dec 20.

“..the commission hereby conveys its strong disapproval of your above action and cautions you to be circumspect in future,” the panel said.

In its letter to the minister, secretary Harbans Singh said that though he said that the government is yet to take a decision in the matter, it has emerged that the cap on the supply of the subsidized LPG cylinders is being raised from the present six to nine a family a year.

“The commission is of the considered view that your above mentioned reply amounts to announcement of promise of financial grant by the government, which the Model Code of Conduct prohibits during its operation when the election process is on,” the poll panel said.

The poll panel said that when the Model Code of Conduct becomes effective, ministers and other authorities cannot make any announcement of any financial grants.

It said the announcement is thus “a clear violation both of the letter and spirit of the Model Code of Conduct.”

In his reply to the commission that was submitted Wednesday morning, Moily said there has been widespread demand from all sections of society, particularly women, for raising the cap on supply of domestic LPG cylinders.

In an event Tuesday, Moily told reporters that the LPG cap is “likely to go up definitely from six cylinders to nine cylinders”.

The minister said the decision to raise the cap will be taken by the union cabinet “very shortly”.

The government had, in September, limited the supply of subsidised LPG to six cylinders per household in a year.

Subsidised cooking gas costs Rs.410.50 per 14.2 kg cylinder at present. Additional requirements have to be bought at the market price of Rs.931.

Moily said as the capping decision was taken by the Cabinet Committee on Political Affairs, it would also decide on raising the cap.

Asked about the time-frame for the decision, he had said: “I think as early as possible.”

The government will have to provide an additional Rs.9,000 crore per annum if the cap is raised.

The petroleum minister had said the government was working on a “certain formula” to neutralise the impact of any additional subsidy burden, and he has had two rounds of discussions with Finance Minister P. Chidambaram on the issue.

Election Commission directs Centre to stop increase in cap on subsidised LPG cylinders

 News
Dec 112012
 

Taking suo moto cognisance of reports of the Centre’s move ahead of Gujarat assembly polls to increase the cap on subsidised LPG cylinders , the Election Commission has directed it to stop the same forthwith.

The Commission held an emergency meeting soon after the Minister of Petroleum and Natural Gas M Veerappa Moily said the government will raise the cap on supply of subsidised cooking gas (LPG) to nine cylinders per household a year from six at present.

The EC, at its meeting chaired by Chief Election Commissioner V S Sampath, decided to write to the Petroleum and Natural Gas Ministry asking it to immediately stop the move which came just ahead of the Gujarat assembly elections and at a time when the Model Code of Conduct is in force there.

The first phase of Gujarat poll is on December 13 and the second and final phase on December 17.

The Election Commission, in its letter, has directed the Petroleum and Natural Gas ministry that “the move for reported increase in supply of subsidised gas cylinders, if any, must be stopped forthwith, under confirmation to the Commission.”

The EC letter to the Petroleum and Natural Gas Ministry said it has come to know of the government’s move on LPG cylinders through media reports quoting the Minister Veerappa Moily.

Announcing the government’s plan to raise the cap on LPG cylinders, Moily told reporters that “I think it is likely to go up definitely from six (cylinders) to 9 (cylinders).”

Government had in September capped the supply of subsidised LPG to six cylinders per household in a year. Any additional requirement is to be bought at market price of Rs 931 per 14.2-kg bottle. Subsidised LPG costs Rs 410.50 per cylinder at present.

Government to raise cap on subsidised LPG cylinders to nine a year

 News
Dec 112012
 

The government will raise the cap on supply of subsidised cooking gas (LPG) to nine cylinders per household in a year from current restriction of six, Oil Minister M Veerappa Moily said on Tuesday .

“I think it is likely to go up definitely from six (cylinders) to 9 (cylinders),” he told reporters here.

The government had in September capped supply of subsidised LPG to six cylinders per household in a year. Any additional requirement is to be bought at market price of Rs 931 per 14.2-kg bottle.

Subsidised LPG costs Rs 410.50 per cylinder at present.

Moily said the decision to raise the cap will be taken by the Cabinet “very shortly”.

The original decision to cap supply at 6 cylinders was taken by the Cabinet Committee on Political Affairs on September 13 and the decision to raise it would also have to be taken by the Cabinet panel, he said.

“I think as early as possible,” he added.

Moily said he has had two rounds of discussions with Finance Minister P Chidambaram on the impact of the decision to raise the cap.

The government will have to provide an additional Rs 9,000 crore annually if the cap is raised.

“We are working on that,” he said on ways to mitigate the additional subsidy requirement. “We are working on certain formula to neutralise it.”