Of The EC and LPG subsidy....

The Union government ran afoul of the Election Commission for the second time in a couple of weeks. The poll watchdog asked the Centre to put in abeyance petroleum minister M Veerappa Moily’s announcement that the cap on subsidized cooking gas cylinders will be raised from six to nine.
Within hours of Moily making the announcement, the EC demanded that the decision be halted “forthwith” and asked the minister for an explanation for what it saw as an election sop two days ahead of polling for the first phase of elections in Gujarat.
The violation may be deemed more serious if the announcement had been made after 5pm as it comes within 48 hours of polling. On the sidelines of a function, Moily said: “I think it (cap on LPG) is likely to go up definitely from six to nine (cylinders).”
The minister says the Cabinet will take the final call over the issue
At present, subsidized LPG costs 410.50 per cylinder 9-cylinder cap means 9,000cr burden
Moily has held two rounds of discussions with finance minister P Chidambaram on the financial impact of a higher cap. It is estimated that the government would have to provide Rs 9,000 crore additional subsidy a year for a nine-cylinder cap.
The EC has asked the minister to send in his reply by 11am on Wednesday.
In separate letters to the petroleum minister and the secretary, EC secretary Harbans Singh drew their attention to “media reports… that the Centre is increasing the supply of subsidized gas cylinders.”

The Election Commission (EC) rapped petroleum and natural gas minister minister M Veerappa Moily for having violated the model code of conduct with his poll-eve announcement of plans to increase the LPG cylinder subsidy cap from six to nine cylinders a year. Expressing its strong disapproval of the announcement made on Tuesday – adjudged by the poll watchdog as promise of a financial grant – the EC cautioned Moily to be circumspect in the future.
Not satisfied with Moily’s explanation that the government was yet to take a decision on the cap and that he had only reiterated a proposal under active consideration while responding to media queries, the poll panel said his reply had made it clear that the cap was being raised to nine cylinders per household in a year.
“Your statement is tantamount to announcement of financial grant in the form of increased subsidy, and is a clear violation of the letter and spirit of the code of conduct,” the EC said in its reply to Moily’s clarification received on Wednesday. It quoted from Part VII of the model code, which bars the party in power at the Centre or in the poll-bound state from using its official position for purposes of its poll campaign.
“The ministers and other authorities shall not announce any financial grants in any form or promises thereof,” the EC said. “Such a statement does have an impact on the minds of electors in Gujarat.”