The private corporate giant, Reliance Industries Limited has voluntarily decided to surrender its subsidized LPG connection. The decision came after the Indian Prime Minister, Narendra Modi, appealed to the citizens to surrender their subsidized LPG connections and buy them at market rates if they can afford it. The money saved through this venture will be utilized in developmental activities, touching the lives of the people in the sectors of infrastructure, education, healthcare, etc.
As Reliance Industries has always been in the forefront in actions of national growth, the company feels it to be its responsibility to help the country economically. To contribute in this initiative, Reliance Industries has also appealed to its employees, vendors and channel partners to buy LPG cylinders at market rates. Around 60,000 employees of Reliance Industries will be giving up their LPG subsidies.To encourage them, the organization is using the slogan, “Say NO to LPG Subsidy. Say YES to India.”
‘Giving up’ initiative
On 27th March, this year, an international energy summit, Urja Sangam was held in New Delhi. In this, the Prime Minister informed that the government has saved around Rs. 100 crores from the surrendered connections, so far. Yesterday, he addressed the giant companies and banks along with their employees and asked them to pass on the benefits to poor and needy families.
Up till now, 320,000 people have voluntarily surrendered their subsidies. The government is expecting the count to reach one crores.
In 2013-2014, the Indian government had a burden of over Rs. 40,000 crores due to subsidies. This year, the budget estimates petroleum subsidy to be Rs. 30,000 crores. Out of this, Rs. 22,000 crores is kept for LPG subsidy and the remaining for kerosene.
The voluntarily surrendered LPG subsidy connection will be given to a new user. This will help the Indian government to deduct its subsidy bill and benefit poor households with more finances.
Contribution from other companies
Like Reliance Industries, Tata Group has also appealed its employees to buy the LPG cylinders at market rates, if they can afford it.
Some other entrepreneurs that have agreed to ask their employees to give up subsidies and contribute to the initiative are Chairman of Mahindra & Mahindra,Anand Mahindra; Chairman of Vedanta Resources Plc., Anil Agarwal;Chairman of JSW Group, Sajjan Jindal; Chairman of Adani Group, Gautam Adani; Managing Director of Kotak Mahindra Bank, Uday Kotak; Chairman of Aditya Birla Group, Kumar Mangalam Birla and Chief Executive Officer of Future Group, Kishore Biyani.
Besides these, Chairman of Bajaj Group, Rahul Bajaj and his two sons, Sanjeev and Rajeev have already given up their subsidized LPG connections, last year.Managing Director of Biocon, Kiran Mazumdar Shaw had never used a subsidized LPG connection and has agreed to encourage her employees for the same.
Anil Agarwal said, “We have encouraged the members of the Vedanta family to help achieve the target of 1 crore people giving up LPG subsidies by the end of the financial year.”