Niti Aayog is working on a proposal to replace LPG subsidy with cooking subsidy in a bid to extend the benefit to people using piped natural gas and biofuels for cooking purposes. Niti Aayog Vice Chairman Rajiv Kumar while speaking to PTI said that subsidy should be applicable for all fuels that are used for cooking. Currently, the government gives subsidy to users of Liquefied Petroleum Gas (LPG).
“Niti Aayog is working on a proposal to replace LPG subsidy with cooking subsidy. LPG is a specific product, a subsidy should be for larger set of all products/ fuels which are used for cooking. (For) all fuels which are used for cooking, subsidy should be applicable. Because if there are some cities where PNG (Piped Natural Gas) is used, then it is only logical that the subsidy be extended to them also,” said Kumar.
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Niti Aayog Chairman’s statements came against the backdrop of apprehensions in certain quarters that subsidy only for LPG users is inhibiting the adoption of clean and cheap fuels such as biofuels in rural areas and PNG in urban areas.
The changes pertaining to cooking subsidy are likely to be incorporated in the draft National Energy Policy 2030. The draft was made public last year. After inter-ministerial consultations, the policy would be taken up by the Cabinet.
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