Lok Sabha Question No. 741 (UNSTARRED), answered on 2018-07-23
Subject: LPG Network
Ministry: PETROLEUM AND NATURAL GAS
Asked by: JANARDAN SINGH SIGRIWAL

## LOK SABHA UNSTARRED QUESTION NO. 741 TO BE ANSWERED ON 23 rd  JULY, 2018

## LPG Network

## 741. SHRI JANARDAN SINGH SIGRIWAL:

पेट्रोल ियम एवं प्राक ृ तिक गैस मंत्री

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state :

- (a) whether the Oil Marketing Companies (OMCs) have put on hold the proposal for expansion  of  Liquefied  Petroleum  Gas  (LPG)  network  by  appointing  several thousand distributors across the country;
- (b) if so, the details thereof along with the total number of LPG distributors likely to be appointed and the reasons for withholding the expansion;
- (c) whether the OMCs have collected any deposit from prospective distributors;
- (d) if so, the details thereof along with the steps taken for refunding their money;
- (e) whether the existing distributors are having any ceiling limit of consumers; and
- (f)  if  so,  the  details  thereof  along  with  the  number  of  distributors  having  LPG customers  over  and  above  the  ceiling  limit  and  the  steps  taken  for  efficient customers service by the OMCs?

## ANSWER

पेट्रोल ियम एवं प्राक ृ तिक गैस मंत्री ( श्री धमेन्द्र प्रधान )

## MINISTER  OF  PETROLEUM    AND  NATURAL  GAS  (SHRI  DHARMENDRA PRADHAN)

- (a) & (b) Appointment  of  LPG  distributorships  is  a  continuous  process.  Under  Unified Guidelines for Selection of LPG distributorship, Oil Marketing Companies (OMCs) have  advertised  6351  locations  across  the  country  to  increase  the  distribution network of LPG.
- (c) & (d) As  per  Unified  guidelines  for  Selection  of  LPG  Distributorship,  an  interest  free refundable security deposit of 10% applicable for the respective type/category of LPG Distributorship is collected from the selected candidate prior to issuance of Letter  of  Intent  (LOI)  and  the  same  is  adjusted  against  the  security  deposit  as applicable.
- (e) & (f) As per Unified guidelines for Selection of LPG Distributorship, the refill ceiling limit  has  been  fixed  on  the  basis  of  population  of  the  designated  area.  The distributors are required to make necessary infrastructure arrangement as per refill ceiling for the efficient customer's service. Market-wise details of  ceiling limit  is as under :-

| Type of Distributorship area   | Population as per census 2011        | Refill Ceiling Limit per month   |
|--------------------------------|--------------------------------------|----------------------------------|
| Sheheri Vitrak                 | Cities with population > 40 lakh     | 20,000                           |
| Sheheri Vitrak                 | Cities with 20 to 40 lakh population | 15,000                           |
| Sheheri Vitrak                 | Cities with 10 to 20 lakh population | 12,000                           |
| Rurban Vitrak                  | Towns with < 10 lakh population      | 10,000                           |
| Gramin Vitrak                  | Village / Cluster of villages        | 5,000                            |
| Durgam Khetriya Vitrak         | Village / Cluster of villages        | 1,500                            |

Major  steps  taken  by  the  Government  /OMCs  to  bring  transparency  in  the functioning of LPG distribution across the country are:-

- i) In order to regulate distribution  of  LPG,  'Liquefied  Petroleum  Gas (Regulation of Supply and Distribution) Order, 2000' has been notified.
2. ii) KYC initiative for all New Connections/Multiple Connections/Transferred/Inactive customers so that customers with proper identity and address proof are enrolled at distributors.
3. iii) IVRS/SMS refill booking system has been introduced across the country in all regular distributorships, wherein customers get SMS on refill booking / generation of cash memo.  Also this empowers the customers and enables him to report any wrong/non delivery.
4. iv) OMCs  have  notified  LPG  Marketing  Discipline  Guidelines  (MDG)  to  be adhered to by the distributors. The  MDG is revised  from time  to  time to cover  all  aspects  of  LPG  marketing  and  to  keep  a  check  on  erring distributors
- v) Provision to rate the services of the OMCs distributors is available on web portal by giving Star Ratings
6. vi) In order to have a convenient, easy and effective way to enable the citizen to provide their feedback, a unique toll free telephone number 18002333555 is in operation through call centers on industry basis.
7. vii) Complaints    are  investigated  and  if  established,  suitable  action  is  taken against the LPG distributor(s) as per provisions of the Marketing Discipline Guidelines (MDG) by the OMCs.
8. viii) OMCs  have  also  introduced  different  colours  for  domestic  and  nondomestic  LPG  cylinders  so  that  misuse  of  domestic  LPG  cylinders  for unauthorized use is easily identifiable.