Delay in ₹500 gas cylinder subsidy under Mahalakshmi scheme

Hyderabad: The ₹500 gas cylinder benefit promised under Telangana’s Mahalakshmi scheme has not been credited to beneficiaries for the past three months, causing financial strain. Consumers say they are now forced to bear the full market price of around ₹915 per cylinder upfront, with no subsidy refunded.

Under the scheme, eligible households pay ₹915 for a gas cylinder, after which the state government reimburses ₹375 and the Centre provides ₹40. This brings down the effective cost to ₹500 per cylinder. The delay in releasing the ₹375 state subsidy has meant that this benefit is effectively stalled.

Officials estimate that over ₹150-180 crore in subsidy payments are currently pending. The state has allocated ₹855.22 crore for the year to cover over two crore subsidised cylinders. There are 1.2 crore LPG connections in the state, of which 39.57 lakh are eligible for this scheme based on ration card records.

Previously, around ₹80 crore was being disbursed every month, ensuring prompt credit of the subsidy. The payments have not been released for three months now. Consumer Affairs Department officials have stated that the payments will resume, albeit with delays.