All over India there are 14 crores of Domestic Cylinder connections.
Domestic cylinder of 14.2 kg is sold at Rs.398 at Chennai at present. For this Government subsidy of Rs 490.50 per cylinder is paid to the supplying companies directly.
But now Government has decided to pay the subsidy to the consumer directly in to his bank account. That is, the consumer should pay the full amount while buying the cylinder and later the subsidy will be deposited in the consumer’s bank account directly by the Government. At present every consumer is allowed to get 9 cylinders per year with subsidy. So the subsidy of Rs.4000/- will be deposited by the Government every year.
On trial basis Central Government is planning to initiate this system in 20 districts from May 15th onwards.