The Modi government's cabinet meeting approved a ₹52,667 crore package related to LPG subsidy, Ujjwala Yojana, education, and Northeast development. Oil companies will be compensated with ₹30,000 crore.
Cabinet Meeting: The central government approved a significant economic package of ₹52,667 crore in the cabinet meeting held on Friday. Presided over by Prime Minister Narendra Modi, the meeting made several important decisions concerning LPG consumers, education, and infrastructure.
Major Step to Make Domestic LPG Affordable
The government has allocated ₹12,060 crore under the Ujjwala Yojana. The objective of this amount is to make the facility of cooking gas affordable and accessible to the poor and low-income groups. In addition, a subsidy of ₹30,000 crore has been given to stabilize domestic cooking gas prices and compensate oil companies for their losses.
This compensation will be received by the three major public sector oil companies - Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL). These companies did not pass on the burden to consumers despite rising LPG prices in the international market and continued to supply gas cylinders at controlled prices.
Compensation to be Received in 12 Installments
This subsidy will be distributed in 12 installments through the Ministry of Petroleum and Natural Gas. The government believes that this financial assistance will help oil companies in purchasing crude oil and gas, repaying loans, and meeting necessary capital expenditures. This will ensure uninterrupted supply of cooking gas across the country.
₹4,200 Crore Package for the Education Sector
The Cabinet has also taken a major decision to improve the education sector. The government has approved a package of ₹4,200 crore to strengthen the infrastructure of technical institutions. The aim is to improve the quality of engineering and technical education and provide modern facilities.
Special Development Package for North Eastern States
Emphasizing the development of Northeast India, a special development package of ₹4,250 crore has been approved for Assam and Tripura. With this amount, special projects will be run in infrastructure, transport, health, and education sectors. This step will strengthen the government's 'Ek Bharat Shreshtha Bharat' policy.
Better Road Connectivity in South India
The Marakkanam-Puducherry four-lane highway project has been approved with ₹2,157 crore to strengthen road connectivity in South India. This project will not only facilitate transport but also accelerate regional development.
