OREANDA-NEWS. March 5, 2011. In tune with the union budget's announcement for cash transfer of subsidy to the poor, Delhi government is all set to announce a new scheme under which direct cash will be given to BPL families if they switch over from kerosene to LPG as cooking fuel. The scheme, which is likely to be announced next week, is aimed at controlling pilferage of kerosene meant for the BPL families and to ensure that the subsidy reaches the actual beneficiaries.

"We are working on a scheme under which cash subsidy will be provided to all BPL families if they switch over from using kerosene as fuel to LPG," officials in Food and Civil Supplies department said. They said the government may extend a cash subsidy of Rs 250 to each BPL family per LPG cylinder against its market price of Rs 310, besides providing the gas stove free of cost.

"If we give a cash subsidy of Rs 250 per cylinder, then a beneficiary will have to pay an additional amount of Rs 60-70 to buy a LPG cylinder," the officials said. Concerned over misuse of subsidies provided under various schemes, Finance Minister Pranab Mukherjee had in his budget speech last week announced the government will provide a direct cash subsidy on kerosene and fertilisers to the poor from March next year.