India Inc has rallied behind Prime Minister Narendra Modi's call to give up cooking gas subsidies with industry leaders like Anand Mahindra, Anil Agarwal, Gautam Adani, Sajjan Jindal, Uday Kotak and Kishore Biyani making a personal appeal to their employees to give up subsidized LPG connections. Last week, the PM had exhorted affluent Indians, including employees of banks and industrial houses, to give up their LPG subsidies voluntarily in order to benefit poor families.
The PM's call seems to have struck a chord among business leaders, with many more expected to follow suit over the next few days.
Earlier, Tatas and RIL had asked their employees to give up their LPG subsidies. Mahindra Group chairman Anand Mahindra, in an appeal to his employees on Monday , said, “In line with our Prime Minister's call to the citizens of India, I appeal to all employees of the Mahindra Group who can afford to buy LPG at market prices to do so and forgo the LPG subsidy .“ Mukesh Ambani-led Reliance Industries (RIL) made a similar appeal to its employees, channel partners and vendors.
The government expects one crore consumers (households) from 15.3 crore domestic LPG consumers across India to surrender this facility .So far 3.2 lakh LPG consumers have surrendered their subsidized gas connections.
Biocon managing director Kiran Mazumdar Shaw had never availed a LPG subsidy and will now ask her employees to be a part of the GiveItUp campaign.
An appeal on the Tata Group website read; “The Tata companies and Tata employees have had a rich tradition of nation building. In keeping with that tradition of supporting national interest, Tata companies are requesting those employees who can afford to do so to consider whether they may wish to voluntarily give up the use of subsidized LPG.“
The subsidy burden on the Indian government exceeded Rs.40,000 crore during 2013-14. In the 2015-16 Budget estimates, the petroleum subsidy had been halved to Rs.30,000 crore. Of this, Rs.22,000 crore has been earmarked for the LPG subsidy while the rest is for kerosene.
The surrendered subsidy will be given to a new consumer. This will reduce the Indian government's subsidy bill and help finances reach more poor households. To be part of the #GiveItUp campaign, a written request has to be submitted to the distributor or an application has to be made on http:www.givitup.in.
The PM's call seems to have struck a chord among business leaders, with many more expected to follow suit over the next few days.
Earlier, Tatas and RIL had asked their employees to give up their LPG subsidies. Mahindra Group chairman Anand Mahindra, in an appeal to his employees on Monday , said, “In line with our Prime Minister's call to the citizens of India, I appeal to all employees of the Mahindra Group who can afford to buy LPG at market prices to do so and forgo the LPG subsidy .“ Mukesh Ambani-led Reliance Industries (RIL) made a similar appeal to its employees, channel partners and vendors.
The government expects one crore consumers (households) from 15.3 crore domestic LPG consumers across India to surrender this facility .So far 3.2 lakh LPG consumers have surrendered their subsidized gas connections.
Biocon managing director Kiran Mazumdar Shaw had never availed a LPG subsidy and will now ask her employees to be a part of the GiveItUp campaign.
An appeal on the Tata Group website read; “The Tata companies and Tata employees have had a rich tradition of nation building. In keeping with that tradition of supporting national interest, Tata companies are requesting those employees who can afford to do so to consider whether they may wish to voluntarily give up the use of subsidized LPG.“
The subsidy burden on the Indian government exceeded Rs.40,000 crore during 2013-14. In the 2015-16 Budget estimates, the petroleum subsidy had been halved to Rs.30,000 crore. Of this, Rs.22,000 crore has been earmarked for the LPG subsidy while the rest is for kerosene.
The surrendered subsidy will be given to a new consumer. This will reduce the Indian government's subsidy bill and help finances reach more poor households. To be part of the #GiveItUp campaign, a written request has to be submitted to the distributor or an application has to be made on http:www.givitup.in.
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