The Ministry of Petroleum and Natural Gas is in favour of direct cash transfer of subsidy on kerosene to accounts of rural beneficiaries to reach the target population better. If found feasible, it plans to expand this to other areas as well.
The government gave Rs 2,876.43 crore to oil marketing companies for selling kerosene below cost during 2008-09, but the major portion of this was in the form of bonds worth Rs 75,942 crore.
Among other measures to prevent diversion of subsidised kerosene, the ministry plans to examine the feasibility of introducing 5-litre recoverable packs.
The proposals are part of Vision 2015, under which the ministry also plans to increase the number of new LPG connections to 55 million by 2015, increasing the population coverage from 50 to 75 per cent. It plans to have 100 per cent LPG coverage in all towns with a population of more than 500,000. With this, the total number of LPG customers would reach 160 million, with most connections being released in rural areas.
The Vision 2015 was finalised by the Minister of Petroleum and Natural Gas, Murli Deora at a CEOs’ conclave in Goa. Besides Minister of State for Petroleum and Natural Gas, Jitin Prasada, and Secretary RS Pandey, CEOs of Indian Oil Corporation, Oil and Natural Gas Corporation, Hindustan Petroleum and Bharat Petroleum were also present at the meeting.
Under a unique initiative, the oil companies decided to use their corporate social responsibility kitty to work with the state governments to provide support to the poor to switch over from kerosene to LPG.
The companies would also introduce SMS booking in all towns with the population of less than 500,000 in phases. Portability of LPG connections among oil PSUs and dealers is another initiative that the vision envisages.
With regard to compressed natural gas and piped gas, the ministry wants to extend the coverage to 200 cities from the present 35, involving 860,000 PNG households and 500,000 vehicles.
