Tamil Nadu objects to FinMin proposal to scrap supply of subsidised kerosene

Chief Minister writes to PM to ask Jaitley to reconsider

The Tamil Nadu government has urged the Ministry of Finance to reconsider its proposal to scrap the supply of subsidised kerosene through the PDS and also to transfer the subsidy element by cash or other alternatives.

In a letter to the Prime Minister, Tamil Nadu Chief Minister O Panneerselvam said that if the Government of India is actually contemplating such a harsh and punitive measure, it would impose considerable hardship on the people of a State like Tamil Nadu. He quoted media reports which stated that the Ministry of Finance has taken a decision to scrap the supply of subsidized kerosene through the Public Distribution System.

The reports also stated that the Centre plans to write to the States, asking them to provide subsidised kerosene only to un-electrified households. States that have achieved near 100 per cent electrification will be incentivized to become kerosene-free. In the remaining States, un-electrified households would be given a choice between cash subsidy in lieu of kerosene allocation and upfront subsidy for greener solar lighting systems. This decision is reportedly based on an interpretation of the 2011 Census data that kerosene is not the fuel of choice for cooking and is used primarily for lighting purposes.

In the letter, the Chief Minister said, in many parts of Tamil Nadu, particularly in rural areas, most households use kerosene as the main cooking fuel. In addition, even in other households it is used as a supplementary and starter fuel and it is also used for supplementary lighting purposes in remote areas.

Further, most households which have LPG connections, even in urban areas, have only a single cylinder connection which means they rely on kerosene as a supplementary fuel. The State even urged by not providing sufficient allocation of kerosene, will have environmental consequences due to the greater use of firewood.

"A complete elimination of subsidised kerosene would be an environmental disaster," said the Chief Minsiter, who noted Tamil Nadu strongly opposed to monetising and transferring in cash the subsidy element of Public Distribution System subsidies, including kerosene, where the critical concern is not the quantum of subsidy but the availability of commodities.

The Chief Minister urged the Prime Minister to instruct the Ministry of Finance to reconsider any such proposal to scrap the supply of subsidised kerosene through the PDS and also to transfer the subsidy element by cash or other alternatives and reiterated the state's standing request to restore Tamil Nadu's monthly kerosene allocation to its full requirement of

65,140 Kilo litres per month in order to ensure that the poor and the middle classes are saved from unnecessary hardship.

Tamil Nadu's full requirement of kerosene is 65,140 Kilo litres per month. Presently the allotment of PDS Kerosene to Tamil Nadu, after 10 successive reductions from the level of 59,780 Kilo litres prevalent in March 2010, stands at 29,056 Kilo litres.