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The Minister of Petroleum & Natural Gas Shri Murli Deora launched here today a new
scheme called ³Rajiv Gandhi Gramin LPG Vitrak(RGGLV)´ in the presence of Shri Jitin
Prasada, Minister of State for Petroleum & Natural Gas. The Scheme aims at setting up small
size LPG distribution agencies in order to increase rural penetration and to cover remote as
well as low potential areas for all the locations having potential of 600 refill sales per month.

Speaking on the occasion, Shri Deora informed that the scheme is initially being
launched in 8 states covering over 1200 locations where the reach of LPG is very low. He
informed that the Scheme will also provide new employment opportunities for the rural
population leading to overall economic prosperity. Recalling that Late Shri Rajiv Gandhi
envisioned self-reliant villages through the institution of Panchyati Raj System, the Minister
pointed out that he wanted the villages to become self-sufficient in their needs so that our rural
population is not forced to migrate to big towns and cities for jobs and other facilities. This
Scheme is yet another step in fulfilling the vision of our great visionary leader.

The Minister added that LPG has now reached urban and semi urban areas across the
country. 83% of LPG network is in urban areas, while only 17% network is in rural areas.
There is an urgent need to extend LPG coverage in rural areas. In the order to eliminate
ailments due to use of chulhas and to provide clean cooking fuel to our rural women folk,
Government has launched Rajiv Gandhi Gramin LPG Vitrak Scheme.

Shri Jitin Prasada also stressed the importance of the Scheme for both youth and
women empowerment specially in the rural areas. He elaborated that the scheme would help
in making cooking a more convenient experience for rural folks besides providing employment
opportunities in those areas.


(i) Size of the agency ± The agencies under the RGGLV will be of small size requiring
lesser finance/infrastructure. These agencies would be viable with monthly refill
sales of 600 against 2,500 at present.
(ii) The agencies would penetrate deeper into the rural areas where regular
distributorships become unviable due to the scale of operation and investment.
RGGLV distributors may be viable for around 1,500 customers in the cluster of
villages being served.
(iii) These agencies will be self operated ± the distributorship himself will manage the
agency, with the help of his family member and one or two employees.
(iv) There will be no arrangement for home delivery.
(v) Age limit for the distributor is being kept as between 21 and 45 years leading to new
employment opportunities for the rural youth.
(vi) Distributor under the scheme will have to be a permanent resident of the village(s)
covered by particular location.
(vii) Under this scheme, all agencies will be in the joint name of husband and wife. In case
of applicants who are single, an undertaking will be obtained that after marriage,
µSpouse¶ will automatically deem to become µpartner¶. This will be a step towards
empowerment of rural womenfolk.
(viii) The likely capital expenditure for setting up of a new RGGLV distributorship will be
about Rs. 3.21 lakh with land measuring 20 mtr. X 24 mtr. being owned by the
candidate being an essential requirement.
(ix) The distributor will be able to recover the capital expenditure by the time 1,800 new
LPG connections are released. The indicative net income of the distributor would
be about Rs. 7,500 per month.
(x) An important feature of the scheme is that no interviews would be conducted and
selection of the distributors would be by draw of lots from amongst all candidates
who have secured more than 80% marks on the criteria of financial capability and
educational qualifications.
(xi) 25% of the locations would be reserved for SC/ST categories in the respective states.
25% reservation for the categories of Defence Personnel/Para Military
Personnel/Physically Handicapped/ Outstanding Sports persons would be clubbed
under one common category. In the common category, if no candidate is found,
then the advertisement next time would be under open category.

Initially the scheme is being launched in the under-mentioned 8 states in the country:

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1 Madhya Pradesh 97
2 Uttar Pradesh 290
3 Rajasthan 192
4 West Bengal 175
5 Bihar 251
6 Jharkhand 80
7 Chhattisgarh 39
8 Orissa 101

As per the " 

#$%& adopted for the LPG sector, target of overall 75% LPG
population coverage has been fixed. However to ensure that growth of LPG usage is evenly
spread, Oil Marketing Companies will be assessing/identifying location under the new scheme
in rural/low potential areas in all States/Union Territories so as to achieve target growth of at
least 50% LPG population coverage in each district and at least 60% overall LPG coverage in
each State over the next five years.