YS Sujana Chowdary Updates from Rajya Sabha. Questions Debates and Current News
Tuesday, August 30, 2011
Subsidies On Cooking Gas And Kerosene
GOVERNMENT OF INDIA
MINISTRY OF PETROLEUM AND NATURAL GAS
QUESTION NO 3066
ANSWERED ON 30.08.2011
Will the Minister of PETROLEUM AND NATURAL GAS be pleased to satate :-
(a) whether it is a fact that Government is considering to stop subsidies on cooking gas and kerosene from next year;
(b) if so, the details thereof;
(c) whether Government is also considering to give cash subsidy to the States every month to support the poor;
(d) the details of subsidies paid by Government during the last three years on cooking gas and kerosene; and
(e) the details of subsidized gas used by the industries during the last three years?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS
(SHRI R.P.N. SINGH)
(a)&(b): A proposal is under consideration with the Government to restrict the number of cylinders to be supplied at subsidized rate to registered customers of Domestic LPG. The proposal is intended to put a cap on the number of subsidized Domestic LPG cylinders, so as to reduce the burgeoning subsidy burden on account of Domestic LPG.
(c): The Government is considering a proposal for direct transfer of subsidies on PDS Kerosene and Domestic LPG on a pilot basis to the intended beneficiaries. The Government has constituted a Task Force in February, 2011 under the Chairmanship of Chairman, Unique Identification Authority of India (UIDAI) to recommend an implementable solution for direct transfer of subsidies on PDS Kerosene and Domestic LPG to the intended beneficiaries. The Task Force has submitted its Interim Report to the Government on 05.07.2011.
(d): The Government is providing subsidy of ` 0.82 per litre on PDS Kerosene and ` 22.58 per cylinder of Domestic LPG from the fiscal budget under the ‘PDS Kerosene and Domestic LPG Subsidy Scheme, 2002’ to the Public Sector Oil Marketing Companies (OMCs) namely, Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL). The details of subsidy paid on PDS Kerosene and Domestic LPG from the fiscal budget during the last three years are given below:- (` crore) Year PDS Kerosene Domestic LPG 2008-09 974 1,714 2009-10 957 1,814 2010-11 930 1,974 In addition to the above fiscal subsidy, the OMCs have incurred under-recoveries on the sale of PDS Kerosene and Domestic LPG during the last three years as given below: (` crore) Year Total Under-recoveries PDS Kerosene Domestic LPG 2008-09 28,225 17,600 2009-10 17,364 14,257 2010-11 19,484 21,772 Gross under-recoveries without considering oil bonds/cash assistance. Under the burden sharing mechanism being followed, these under-recoveries are shared by the Government and the Public Sector oil companies.
(e): The OMCs have informed that they do not supply subsidized LPG to the industrial units.
Will the Minister of PETROLEUM AND NATURAL GAS be pleased to satate :-
(a) whether it is a fact that Government is considering to stop subsidies on cooking gas and kerosene from next year;
(b) if so, the details thereof;
(c) whether Government is also considering to give cash subsidy to the States every month to support the poor;
(d) the details of subsidies paid by Government during the last three years on cooking gas and kerosene; and
(e) the details of subsidized gas used by the industries during the last three years?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS
(SHRI R.P.N. SINGH)
(a)&(b): A proposal is under consideration with the Government to restrict the number of cylinders to be supplied at subsidized rate to registered customers of Domestic LPG. The proposal is intended to put a cap on the number of subsidized Domestic LPG cylinders, so as to reduce the burgeoning subsidy burden on account of Domestic LPG.
(c): The Government is considering a proposal for direct transfer of subsidies on PDS Kerosene and Domestic LPG on a pilot basis to the intended beneficiaries. The Government has constituted a Task Force in February, 2011 under the Chairmanship of Chairman, Unique Identification Authority of India (UIDAI) to recommend an implementable solution for direct transfer of subsidies on PDS Kerosene and Domestic LPG to the intended beneficiaries. The Task Force has submitted its Interim Report to the Government on 05.07.2011.
(d): The Government is providing subsidy of ` 0.82 per litre on PDS Kerosene and ` 22.58 per cylinder of Domestic LPG from the fiscal budget under the ‘PDS Kerosene and Domestic LPG Subsidy Scheme, 2002’ to the Public Sector Oil Marketing Companies (OMCs) namely, Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL). The details of subsidy paid on PDS Kerosene and Domestic LPG from the fiscal budget during the last three years are given below:- (` crore) Year PDS Kerosene Domestic LPG 2008-09 974 1,714 2009-10 957 1,814 2010-11 930 1,974 In addition to the above fiscal subsidy, the OMCs have incurred under-recoveries on the sale of PDS Kerosene and Domestic LPG during the last three years as given below: (` crore) Year Total Under-recoveries PDS Kerosene Domestic LPG 2008-09 28,225 17,600 2009-10 17,364 14,257 2010-11 19,484 21,772 Gross under-recoveries without considering oil bonds/cash assistance. Under the burden sharing mechanism being followed, these under-recoveries are shared by the Government and the Public Sector oil companies.
(e): The OMCs have informed that they do not supply subsidized LPG to the industrial units.
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