The Government of India is in the process of selling its entire gas stake in Bharat Petroleum Corporation Limited (BPCL).
A total of three tenders have been submitted, including the primary Vedanta group.
Meanwhile, Bharat gas is a brand of Bharat Petroleum they sell LPG under this brand.
Bharat gas has more than 42 million subscribers across the country.
As a result, the question of what will happen to the subsidy given by the central government for cooking gas if the company becomes private began to revolve in the minds of many customers.
Concerns and suspicions were growing as there was no comment from the government on the matter.
Finally, the central government clarified its position on this issue.
Recently, Union Oil Minister Dharmendra Pradhan said that even after the privatization of Bharat Petroleum.
The subsidy on cooking gas for Bharatgas customers will not stop.
They will get subsidies on gas cylinders like now that is why the Union Petroleum Minister has appealed to the customers of Bharat Gas not to worry.
In the words of the Minister, Cooking gas subsidy is not given to the customers through any company.
It reaches the consumers directly on behalf of the government. It doesn’t matter who owns the company that sells LPG.
The gas minister added, “Since the subsidy money goes directly to the customer, it is completely irrelevant whether the company is state-owned or private.”
The same subsidy that used to be available for LPG in Bharat Petroleum will be available after privatization.
A year ago, the Union Cabinet approved a proposal to sell the entire 52.96 percent stake in BPCL held by the Center.
At present, the market value of BPCL is Rs 69,525.06 crore.
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As such, it is expected to sell a 52.97 percent stake and bring in Rs 47,430 crore to the exchequer.
In 2013, the then UPA-II government’s Petroleum and Natural Gas Minister Birappa Moily launched the DBT (Direct Benefit Transfer) project on cooking gas.
Since then, customers have been getting cooking gas subsidy money in certain bank accounts connected to Aadhaar.