The government is selling its entire 52.97 percent stake in BPCL. But there was apprehension amongst the customers and investors as to how the subsidized cooking gas scheme would operate after the privatization of BPCL.
New Delhi: LPG Subsidy News: There is good news for LPG customers. Bharat Petroleum Corporation Limited (BPCL), under process for disinvestment, has created a separate platform for subsidizing its LPG customers. Through this platform, the subsidy amount will be directly transferred to the bank account of the consumer.
Know what the government said
This platform has been created so that the customers should not face any problem in getting the subsidy even after the completion of the sale process of BPCL and the scheme should be kept running continuously. Under this, through the new platform, the government will be able to continue to transfer subsidy to LPG consumers even after the privatization of BPSL.
Privatization of BPCL
In fact, the government is selling its entire 52.97 percent stake in BPCL. But there was apprehension amongst the customers and investors as to how the subsidized cooking gas scheme would operate after the privatization of BPCL. If companies give subsidy then take it on themselves, then it will have to revise the selling price of BPCL.
But now under the new rule, even after the sale of BPCL to LPG consumers, the transfer of subsidy in their bank account will be continued. The government has made it clear that like the current system, the customers will continue to get subsidy.
What’s in the new platform?
With the help of a new platform, it will help to run subsidized LPG operations separately. This new platform will help in identification of beneficiary and transfer of subsidy. Private oil companies like Reliance, Naira Energy are not given any subsidy support by the government for LPG. In such a situation, if these companies sell domestic LPG cylinders, then this sale will be at market price only.
Auction for BPCL
The government has allocated Rs 12,995 crore as petroleum subsidy for the current financial year 2021-22. Earlier in the financial year this allocation was Rs 40,000 crore. With regard to BPCL, the government will soon invite price bids from potential investors. Apart from Vedanta Group, two American funds- Apollo Global and I Squared Capital have submitted their expressions of interest for BPCL.
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