Question : Under Recovery to Oil Companies

(a) whether the Government has not paid huge arrears on account of subsidised kerosene to the State run oil companies;
(b) if so, the details thereof and the reasons therefor along with the time by which it is likely to be paid, company-wise;
(c) the details of the allocation of kerosene supply to various States at subsidised rates during each of the last three years, State/UT-wise; and
(d) whether the Government proposes to declare some States/UTs as kerosene free and if so, the details thereof along with the name of such States/UTs which have been declared kerosene free so far?
---------------

MINISTER OF STATE (I/C) IN THE MINISTRY OF PETROLEUM AND NATURAL GAS
(SHRI DHARMENDRA PRADHAN)
(a) & (b): The Government has approved the budgetary support for under-recovery incurred on the sale of PDS Kerosene to the Public Sector Oil Marketing Companies (OMCs) for financial year 2015-16 at a rate of Rs. 12 per litre. At this rate, the Budgetary support for OMCs for financial year 2015-16 amounts to Rs 10245.01 crore. The Government provided Rs. 7,999 crore as budgetary support for PDS Kerosene out of which Rs. 5,223.34 crore was paid to OMCs for the year 2014-15 and Rs. 2775.66 crore was paid for the year 2015-16. In the budget of 2016-17, Budget provision of Rs. 7,094.21 crore has been made to meet the under-recoveries incurred by OMCs on sale of PDS Kerosene.
(c): State/UT-wise PDS Kerosene allocation made to the States/UTs during the last three years is in Annexure.
(d): So far, NCT of Delhi and UT of Chandigarh have been declared PDS Kerosene Free States/UTs, effective 1st October, 2013 and 1st April, 2016 respectively.
x-x-x-x-x