Translucent cylinders may take away LPG subsidy
11 Mar 2010
The government has "in principle" approved the introduction of composite (translucent fiber glass) cylinders for marketing domestic LPG, subject to there being no subsidy element in the LPG to be marketed through these cylinders, minister for petroleum and natural gas Murli Deora informed the Lok Sabha in a written reply today.
He said the ministry has approved an expansion of product line by the public sector oil marketing companies (OMCs) and the fiberglass gas cylinders are initially planned to be launched on a pilot basis in Bangalore, Chennai, Mumbai and Pune.
If successful, translucent LPG cylinders will be launched throughout the country, he added.
OMCs, he said had floated global tenders for procurement of translucent LPG cylinders and the bids are currently under evaluation. Only after finalisation of the tender and placement of purchase order, the cost of the proposed translucent fiberglass cylinders will be known, he added.
These cylinders are being introduced in selected markets as a separate package and not as replacement of existing cylinders, he insisted.
The composite cylinders are translucent and have the advantage of showing the level of LPG present in the cylinder. Handling of these cylinders would also be easier as they are lighter in weight than steel cylinders.
