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Govt to provide direct subsidy on kerosene

Plans to use UID cards to reach out to beneficiaries, following successful pilot project in Alwar, Rajasthan

Press Trust of India  |  New Delhi 

The government said today that it planned to provide direct subsidy to beneficiaries of kerosene oil and a pilot project in this regard in Alwar district of Rajasthan was yielding good results.

"Direct subsidy on kerosene is planned in future...We have to move towards it. It will be done using UID cards... We are benefiting from the pilot project," Minister of State for Petroleum and Natural Gas RPN Singh said in the Rajya Sabha.

He said the Government had provided subsidy of Rs 1,38,541 crore during 2011-12 and a subsidy burden of Rs 1,89,605 crore on petroleum products was due during the current year.

"The government is bearing a subsidy of Rs 503 per LPG cylinder, a subsidy of Rs 32 on per litre of kerosene, while the loss on diesel suffered by oil marketing companies was Rs 13.64 per litre," he said during Question Hour.

He suggested that subsidy should be reduced and urged members to take the lead in doing away with their LPG quotas.

"A proposal should come from all MPs that they will not take subsidy on their LPG cylinder. This would show the way so that the message goes that the subsidy is meant for the poor," he said, adding that the rich were also taking subsidy which was meant only for the poor and lower middle class.

The Minister said a pilot project providing direct subsidy to poor and lower middle class beneficiaries was successfully under implementation in a Tehsil in Alwar district of Rajasthan and the government was benefiting. He said details of the project were yet to be received as it was still on.

To another question, he said there is no plan before the government to supply PDS kerosene to fishermen of Kerala, but said non-PDS kerosene could be provided to Kerala government for fishermen if a demand was made.

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First Published: Tue, May 22 2012. 14:56 IST