The Petroleum Minister Veerappa Moily has approved the proposal of Delhi Government to increase the financial contribution of oil PSUs towards every free LPG connection in Delhi, under the initiative called 'Delhi Kerosene-free city'.
As per the initiative, oil PSUs and Delhi government have agreed to provide free LPG connections to the poor using kerosene as cooking fuel.
Delhi chief minister Sheila Dixit met Moily to explain the situation that security deposit for new connections has been raised from Rs 1,400 to Rs 1,600 and demanded that oil PSUs be asked to share equal burden.
Media reports said that Moily agreed immediately to the proposal and hiked the contribution of oil PSUs to Rs 800 per connection, which is equal to what Delhi Government has been paying.
The move has been expected to boost the process of releasing new connections to almost 3.56 lakh households and a gas stove free of cost.