Ways to increase sales and customer service:

Booking thru phone Fast and assured delivery Introduce smaller cylinders. If smaller cylinders can be introduced, not only will each refill cost

be considerably smaller, enabling many households to refill more regularly, but the initial cylinder deposit fee (basically covering the cost of cylinder manufacture), for which the State Government of AP is currently paying Rs 1,000, can also be lowered. Smaller cylinders may therefore yield double benefits: more regular consumption of LPG by the beneficiaries, especially in rural areas, and a lower subsidy bill for the government

Publicize the health benefits of reducing exposure to indoor air pollution to increase demand for cleaner cooking. Such public education campaigns should, however, be conducted in a broader context and emphasize a number of measures, including “smokeless” chullahs (chullahs with chimneys) and separate kitchens, so that households can choose from several options.

DEEPAM lpg scheme:

Government of A.P. launched “ DEEPAM SCHEME “ on 9.7.1999 for distribution of 10 lakh LP gas connections to women from Below Poverty Line (BPL) Families in Rural areas with the main objectives of : 1. to provide relief to women from drudgery of cooking with firewood,

2. to improve the health status of the Rural women folk.

4.22 Government of India agreed to release these 10 lakh gas connections subject to

surrender of 5ltrs of kerosene per connection per month.

4.23 Under the scheme public sector under taking oil companies viz. The Indian Oil Corporation, Bharat Petroleum Corporation and Hindusthan Petroleum Corporation are the agencies which will supply LP Gas connections to the women in Rural areas. Beneficiaries under the scheme will be members from DWCRA Groups.

4.24 Refundable security deposit of Rs.1000/- per gas connection will be paid by the Government of Andhra Pradesh for each connection towards cylinder and regulator. The beneficiary will have to pay cost towards the gas stove (ISI Mark) ISI Tube, identification (Blue) book and administrative charges.

The Deepam beneficiaries have to cover other upfront costs of taking up LPG⎯the purchase of a stove and associated accessories⎯amounting to some Rs 1,000.

rajiv gandhi gramin LPG Vitrak

Rajiv Gandhi Gramin LPG Vitaran Yojana (RGGLVY)” was launched on October 16, 2009. 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 (locations having potential of 600 cylinders (refill sales) per month). The scheme is currently being launched in all states across the country. 

To make LPG available in rural areas. RGGLV will be sustainable for cluster of villages having about 4000 families. *RGGLV will be setup for a group/cluster of villages having a potential of average monthly sale of 600 cylinders (refill sales) per month of 14.2 kg. and 1,800 customers considering monthly per capita consumption of 5 Kg. Proprietor himself along with one staff will operate the same. RGGLV would have an LPG storage Godown of much smaller size as compared to a normal distributorship Godown. Both LPG Godown and showroom will be located close by. The Godown would be sufficient to store minimum 300 filled cylinders to accommodate full truck load i.e License capacity of about 5000 Kg LPG as against present size of 12000 kg for urban distributors and 8000 kg for rural distributors. A small showroom of the size 2.6 m X 3 m can be constructed near the Godown outside (safety zone) or in an existing nearby shop. LPG cylinders (14.2 kg Refills) will be supplied to the customers on Cash and Carry basis with no rebate.

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

Salient features of the scheme:

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.

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.

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.

There will be no arrangement for home delivery.

Age limit for the distributor is being kept as between 21 and 45 years leading to new

employment opportunities for the rural youth.

Distributor under the scheme will have to be a permanent resident of the village(s) covered by

particular location.

The likely capital expenditure for setting up of a new RGGLV distributorship will be about Rs.

3.21 lakh with land measuring 20 meter X 24 meter being owned by the candidate being an

essential requirement.

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.

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.