Lok Sabha Question No. 2 (UNSTARRED), answered on 2015-11-30
Subject: LPG Network
Ministry: PETROLEUM AND NATURAL GAS
Asked by: BOORA NARSAIAH GOUD, RADHESHYAM BISWAS, SIRAJUDDIN AJMAL, RAM TAHAL CHOUDHARY, BAIJAYANT "JAY" PANDA, G. HARI, MANOJ RAJORIA

## LOK SABHA UNSTARRED QUESTION NO. 2 TO BE ANSWERED ON 30TH NOVEMBER 2015

## LPG NETWORK

2. DR. BOORA NARSAIAH GOUD:

SHRI RADHESHYAM BISWAS: SHRI SIRAJUDDIN AJMAL: SHRI RAM TAHAL CHOUDHARY: SHRI BAIJAYANT JAY PANDA: SHRI G. HARI:

DR. MANOJ RAJORIA:

पेट्रोलियम एवं प्राक ृ लिक गैस मंत्री

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

- (a)  whether  there  is  an  acute  shortage  of  LPG  cylinders  in  the  country  including North Eastern States and if so, the details thereof and the fund sanctioned/spent in rural/scheduled areas in the country during the last three years, State/UT-wise;
- (b) the steps taken by the Government to expand LPG network/agencies/ dealership in the country including North Eastern States to balance demand and supply of LPG cylinders, State/UT-wise;
- (c)  whether  the  Government  proposes  to  withdraw  LPG  subsidy  or  end  up  the subsidized  LPG  facility  for  selective  people  in  the  country  and  if  so,  the  details thereof  along  with  number  of  persons  who  left  the  LPG  subsidy  and  quantum  of subsidy saved by the Government under 'Give it up' scheme;
- (d)  the  details  of  cases  of  black  marketing/diversion/overcharging/  underweight/ irregular home delivery of LPG cylinders reported in the country along with measures taken  to check  black  marketing/irregularities in distribution of LPG  cylinders, State/UT/OMC-wise;
- (e)  whether  the  Government  has  conducted  any  flash  raids  at  LPG  distribution agencies  and  their  godown  to  curb  this  malpractice  in  the  country  including Jharkhand and if so, the details thereof along with number of such cases identified where prior information of raids is leaked by Oil Marketing Companies (OMCs) and follow-up action taken by the Government, State/UT/OMC-wise;
- ((f)  the  details  of  mechanism/guidelines  prescribed  in  the  Direct  Benefit  Transfer Scheme (DBTL)/PAHAL for LPG consumers and number of consumers enrolled/benefitted; and
- (g) the steps taken by the Government to credit LPG subsidy under DBTL/ PAHAL for all genuine recipients in the country along with success made by the Government to reduce the subsidy expenditure and quantum of subsidy saved after introduction of DBTL?

## ANSWER

पेट्रोलियम एवं प्राक ृ लिक गैस मंत्रािय में राज्य मंत्री (स्विंत्र प्रभार) (श्री धमेन्द्र प्रधान)

## MINISTER OF STATE (INDEPENDENT  CHARGE)  IN THE MINISTRY OF PETROLEUM & NATURAL GAS (SHRI DHARMENDRA PRADHAN)

(a)  Public  Sector  Oil  Marketing  Companies(OMCs)  have  reported  that  there  is  no scarcity or shortage of LPG cylinders in the country including North Eastern States.

(b) OMCs aim to increase the National LPG coverage to 75 % with minimum 60 % coverage  at  State  level  and  at  least  one  distributor  in  each  block  by  2019.  To increase the penetration in rural and backward areas, Oil Marketing Companies(OMCs)  are  appointing  new  LPG  distributors  and  more  than  97  %  of blocks are being catered by at least one LPG distributorship.

(c) At present, there is no such proposal under consideration.

However, Government has launched an initiative to encourage domestic LPG consumers, who can afford to pay the market price for LPG, to voluntarily surrender their  LPG  subsidy.    As  on  26.11.2015,  more  than  50  lakhs  consumers  have voluntarily  given  up/surrendered  subsidy  on  LPG.    Every  LPG  consumer,  who surrenders LPG subsidy, is linked to a BPL household who gets LPG connection in turn.

(d)  State/UT-wise  details  of  established  cases  of  irregularities  including  black marketing/ diversion/ overcharging/ underweight/ irregular home delivery of cylinders by LPG distributors, in the last three years and the current year (till October, 2015) are given at Annexure I .

In  all  established  cases  of  irregularities,  action  is  taken  against  the  erring distributors as per provisions of prevailing Marketing Discipline Guidelines(MDG) and distributorship agreement.

OMCs  are  vigilant  to  prevent  and  take  action  against  irregularities  against LPG  distributors.  OMCs  also  carry  regular  surprise  inspections  at  distributors premises,  conduct  refill  audits,  surprise  checks  at  customers  premises,  en-route checking of delivery vehicles etc.

(e) Public Sector Oil Marketing Companies (OMCs) have reported that inspections are carried out by their Field Officers, Anti Adulteration Cell and  Vigilance Department at LPG godowns and showrooms of LPG distributorships of the country including Jharkhand.

OMCs have not  received  any  established  cases  where  prior  information  of raids is leaked by their officials.

State/UT-wise details (including Jharkhand) of number of inspections carried out  in  the  last  three  years  and  current  year  (till  October,  2015)  are  given  at Annexure II .

(f)  &  (g)  )  LPG  consumers who join the PAHAL scheme, get the LPG cylinders at market  price  and  receive  LPG  subsidy  (as  per  their  entitlement)  directly  into  their bank accounts.  To join PAHAL, all domestic LPG consumers have been given two alternatives in the scheme.  If LPG consumer has Aadhaar number, he/ she requires to link it to his/ her LPG consumer ID and bank account.  Alternatively, he/ she can link his bank account directly to his/her LPG consumer ID.  As on 26.11.2015,  14.59 crore  have joined the PAHAL Scheme. Subsidy under PAHAL scheme is normally transferred electronically within 48 hours. The amount of LPG subsidy provided during FY 2014-15 was Rs. 40591 crore as against the subsidy of Rs. 52231 crore during FY 2013-14, which amounts to a saving of Rs. 11,640 crore.  This saving in subsidy is mainly due to fall in oil prices and implementation of PAHAL Scheme.

- ---------

Annexure referred to in part (d) of the reply to Lok Sabha Unstarred Question No. 2 for 30.11.2015 regarding

LPG Network.

| Number of established cases of irregularities of LPG distributors of OMCs   | Number of established cases of irregularities of LPG distributors of OMCs   | Number of established cases of irregularities of LPG distributors of OMCs   | Number of established cases of irregularities of LPG distributors of OMCs   | Number of established cases of irregularities of LPG distributors of OMCs   |
|-----------------------------------------------------------------------------|-----------------------------------------------------------------------------|-----------------------------------------------------------------------------|-----------------------------------------------------------------------------|-----------------------------------------------------------------------------|
| STATE/UT                                                                    | 2012-13                                                                     | 2013-14                                                                     | 2014-15                                                                     | Apr-Oct '15                                                                 |
| CHANDIGARH                                                                  | 3                                                                           | 11                                                                          | 46                                                                          | 20                                                                          |
| DELHI                                                                       | 100                                                                         | 60                                                                          | 78                                                                          | 56                                                                          |
| HARYANA                                                                     | 94                                                                          | 38                                                                          | 93                                                                          | 45                                                                          |
| HIMACHAL PRADESH                                                            | 4                                                                           | 2                                                                           | 2                                                                           | 5                                                                           |
| JAMMU & KASHMIR                                                             | 16                                                                          | 25                                                                          | 15                                                                          | 84                                                                          |
| PUNJAB                                                                      | 74                                                                          | 35                                                                          | 82                                                                          | 131                                                                         |
| RAJASTHAN                                                                   | 55                                                                          | 51                                                                          | 121                                                                         | 118                                                                         |
| UTTAR PRADESH                                                               | 758                                                                         | 288                                                                         | 405                                                                         | 207                                                                         |
| UTTRANCHAL                                                                  | 69                                                                          | 6                                                                           | 26                                                                          | 132                                                                         |
| SUB TOTAL NORTH                                                             | 1173                                                                        | 516                                                                         | 868                                                                         | 798                                                                         |
| ANDAMAN & NICOBAR                                                           | 0                                                                           | 0                                                                           | 0                                                                           | 0                                                                           |
| ARUNACHAL PRADESH                                                           | 2                                                                           | 0                                                                           | 2                                                                           | 1                                                                           |
| ASSAM                                                                       | 22                                                                          | 1                                                                           | 72                                                                          | 27                                                                          |
| BIHAR                                                                       | 81                                                                          | 63                                                                          | 173                                                                         | 24                                                                          |
| JHARKHAND                                                                   | 34                                                                          | 37                                                                          | 23                                                                          | 16                                                                          |
| MANIPUR                                                                     | 0                                                                           | 1                                                                           | 1                                                                           | 1                                                                           |
| MEGHALAYA                                                                   | 2                                                                           | 0                                                                           | 10                                                                          | 0                                                                           |
| MIZORAM                                                                     | 0                                                                           | 4                                                                           | 0                                                                           | 0                                                                           |
| NAGALAND                                                                    | 0                                                                           | 0                                                                           | 0                                                                           | 0                                                                           |
| ORISSA                                                                      | 47                                                                          | 111                                                                         | 38                                                                          | 105                                                                         |
| SIKKIM                                                                      | 0                                                                           | 0                                                                           | 0                                                                           | 0                                                                           |
| TRIPURA                                                                     | 0                                                                           | 2                                                                           | 1                                                                           | 1                                                                           |
| WEST BENGAL                                                                 | 23                                                                          | 25                                                                          | 32                                                                          | 11                                                                          |
| SUB TOTAL EAST                                                              | 211                                                                         | 244                                                                         | 352                                                                         | 186                                                                         |
| CHATTISGARH                                                                 | 65                                                                          | 17                                                                          | 32                                                                          | 31                                                                          |
| DADRA & NAGAR HAVELI                                                        | 0                                                                           | 0                                                                           | 0                                                                           | 0                                                                           |
| DAMAN & DIU                                                                 | 0                                                                           | 2                                                                           | 1                                                                           | 0                                                                           |
| GOA                                                                         | 7                                                                           | 9                                                                           | 1                                                                           | 1                                                                           |
| GUJARAT                                                                     | 110                                                                         | 82                                                                          | 66                                                                          | 109                                                                         |
| MADHYA PRADESH                                                              | 104                                                                         | 148                                                                         | 183                                                                         | 138                                                                         |
| MAHARASHTRA                                                                 | 157                                                                         | 138                                                                         | 218                                                                         | 60                                                                          |
| SUB TOTAL WEST                                                              | 443                                                                         | 396                                                                         | 501                                                                         | 339                                                                         |
| ANDHRA PRADESH                                                              | 114                                                                         | 95                                                                          | 150                                                                         | 69                                                                          |
| KARNATAKA                                                                   | 154                                                                         | 65                                                                          | 97                                                                          | 78                                                                          |
| KERALA                                                                      | 47                                                                          | 47                                                                          | 114                                                                         | 10                                                                          |

| LAKSHADWEEP     |    0 |    0 |    0 |    0 |
|-----------------|------|------|------|------|
| PONDICHERRY     |    2 |    0 |    1 |    1 |
| TAMILNADU       |   61 |   32 |   85 |   84 |
| TELANGANA       |    5 |    9 |   55 |   75 |
| SUB TOTAL SOUTH |  383 |  248 |  502 |  317 |
| ALL INDIA       | 2210 | 1404 | 2223 | 1640 |

## Annexure - II

Annexure referred to in part (e) of the reply to Lok Sabha Unstarred Question No. 2 for 30.11.2015 regarding LPG Network.

| Number of inspections carried out of LPG distributors of OMCs   | Number of inspections carried out of LPG distributors of OMCs   | Number of inspections carried out of LPG distributors of OMCs   | Number of inspections carried out of LPG distributors of OMCs   | Number of inspections carried out of LPG distributors of OMCs   |
|-----------------------------------------------------------------|-----------------------------------------------------------------|-----------------------------------------------------------------|-----------------------------------------------------------------|-----------------------------------------------------------------|
| STATE/UT                                                        | 2012-13                                                         | 2013-14                                                         | 2014-15                                                         | Apr-Oct '15                                                     |
| CHANDIGARH                                                      | 95                                                              | 101                                                             | 259                                                             | 71                                                              |
| DELHI                                                           | 1123                                                            | 1306                                                            | 1089                                                            | 545                                                             |
| HARYANA                                                         | 841                                                             | 505                                                             | 952                                                             | 624                                                             |
| HIMACHAL PRADESH                                                | 370                                                             | 756                                                             | 345                                                             | 190                                                             |
| JAMMU & KASHMIR                                                 | 477                                                             | 483                                                             | 431                                                             | 258                                                             |
| PUNJAB                                                          | 1160                                                            | 1207                                                            | 1344                                                            | 1172                                                            |
| RAJASTHAN                                                       | 1665                                                            | 1878                                                            | 1712                                                            | 1316                                                            |
| UTTAR PRADESH                                                   | 3511                                                            | 3643                                                            | 4921                                                            | 3452                                                            |
| UTTRANCHAL                                                      | 299                                                             | 230                                                             | 423                                                             | 337                                                             |
| SUB TOTAL NORTH                                                 | 9541                                                            | 10109                                                           | 11476                                                           | 7965                                                            |
| ANDAMAN & NICOBAR                                               | 18                                                              | 9                                                               | 29                                                              | 12                                                              |
| ARUNACHAL PRADESH                                               | 46                                                              | 30                                                              | 87                                                              | 19                                                              |
| ASSAM                                                           | 753                                                             | 1002                                                            | 664                                                             | 289                                                             |
| BIHAR                                                           | 1127                                                            | 983                                                             | 1317                                                            | 961                                                             |
| JHARKHAND                                                       | 479                                                             | 510                                                             | 626                                                             | 357                                                             |
| MANIPUR                                                         | 81                                                              | 104                                                             | 85                                                              | 72                                                              |
| MEGHALAYA                                                       | 45                                                              | 34                                                              | 52                                                              | 21                                                              |
| MIZORAM                                                         | 77                                                              | 89                                                              | 48                                                              | 51                                                              |
| NAGALAND                                                        | 94                                                              | 55                                                              | 52                                                              | 19                                                              |
| ORISSA                                                          | 564                                                             | 498                                                             | 1080                                                            | 548                                                             |
| SIKKIM                                                          | 33                                                              | 37                                                              | 67                                                              | 66                                                              |
| TRIPURA                                                         | 78                                                              | 88                                                              | 48                                                              | 48                                                              |
| WEST BENGAL                                                     | 1530                                                            | 1429                                                            | 1719                                                            | 1006                                                            |
| SUB TOTAL EAST                                                  | 4925                                                            | 4868                                                            | 5874                                                            | 3469                                                            |
| CHATTISGARH                                                     | 628                                                             | 571                                                             | 565                                                             | 349                                                             |
| DADRA & NAGAR HAVELI                                            | 11                                                              | 0                                                               | 0                                                               | 0                                                               |
| DAMAN & DIU                                                     | 48                                                              | 20                                                              | 0                                                               | 0                                                               |
| GOA                                                             | 260                                                             | 177                                                             | 361                                                             | 128                                                             |
| GUJARAT                                                         | 2022                                                            | 2086                                                            | 1873                                                            | 1033                                                            |
| MADHYA PRADESH                                                  | 1854                                                            | 2125                                                            | 2062                                                            | 1378                                                            |
| MAHARASHTRA                                                     | 5004                                                            | 3656                                                            | 4665                                                            | 2704                                                            |

| SUB TOTAL WEST   |   9827 |   8635 |   9526 |   5592 |
|------------------|--------|--------|--------|--------|
| ANDHRA PRADESH   |   3411 |   3104 |   2238 |   1441 |
| KARNATAKA        |   1429 |   1491 |   1629 |   1269 |
| KERALA           |    850 |    999 |   1392 |    948 |
| LAKSHADWEEP      |      0 |      0 |      0 |      0 |
| PONDICHERRY      |     15 |     31 |     46 |     41 |
| TAMILNADU        |   2341 |   2529 |   3048 |   1483 |
| TELANGANA        |      0 |      0 |    316 |    614 |
| SUB TOTAL SOUTH  |   8046 |   8154 |   8669 |   5796 |
| ALL INDIA        |  32339 |  31766 |  35545 |  22822 |