TNI Bureau: In a significant move aimed at supporting industrial growth, the Ministry of Petroleum and Natural Gas has proposed an increase in the allocation of non-domestic LPG used in commercial and industrial sectors. The proposal was communicated through a letter written by Secretary Dr. Neeraj Mittal to the Chief Secretaries of all States and Union Territories.

Under the existing system, states were receiving 40% of their pre-crisis LPG quota, along with an additional 10% allocation based on periodic revisions. The new proposal seeks to enhance this allocation by a further 20%, thereby raising the total supply to 70% of the pre-crisis levels. This step is expected to provide substantial relief to industries that rely heavily on LPG for their operations.

The revised allocation policy prioritizes labour-intensive sectors such as steel, automobile, textiles, paints, chemicals, and plastics. Special emphasis is also being placed on process industries that require high thermal energy and where natural gas is not a viable alternative.

At the same time, industries will still need to comply with existing norms, including mandatory registration with oil marketing companies (OMCs) and applying for Piped Natural Gas (PNG) connections wherever feasible. However, exemptions will be granted to sectors where LPG has no practical substitute.

The central government has urged states to quickly avail the additional 10% allocation under the revised mechanism to ensure smoother fuel availability. The move is expected to boost industrial productivity, enhance operational efficiency, and generate employment, contributing positively to overall economic activity.

Overall, the proposed increase in commercial LPG allocation reflects a calibrated effort by the government to balance energy supply constraints while sustaining industrial momentum.