MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI R.P.N. SINGH)
(a): No, Madam, at present there is no such proposal.
(b): Does not arise.
(c): The details of subsidy being provided currently on sensitive
petroleum products are given below:
(` per litre/ per cylinder)
Product Subsidy by Government under Under-Recovery Total subsidy to âPDS Kerosene and Domestic incurred by the OMCs# the consumers LPG Subsidy Scheme, 2002â
Diesel N.A. 13.76 13.76
PDS Kerosene 0.82 28.54 29.36
Domestic LPG 22.58 231.00 253.58
# based on refinery gate price effective 1.8.2012 for PDS Kerosene and
Domestic LPG & 16.8.2012 for Diesel, at Delhi.
The details of subsidy provided/ under-recovery (UR) incurred during the last
3 years are given below:
(` in crore)
Year Diesel PDS Kerosene Domestic LPG
U/R of Budge U/R of Total subsidy Budget U/R of Total subsidy OMCs1 Subsidy2 OMCs1 to consumers Subsidy2 OMCs1 to consumers
2009-10 9279 956 17364 18320 1814 14257 16071
2010-11 34706 931 19484 20415 1974 21772 23746
2011-12 81192 863 27352 28215 2137 29997 32134
1- Gross under-recovery incurred by the OMCs
2- Subsidy under âPDS Kerosene and Domestic LPG Subsidy Scheme, 2002â.
(d) & (e): Consequent to Finance Ministerâs announcement in his Budget
Speech, a Task Force has been constituted by the Government in February,
2011 under the Chairperson, Unique Identification Authority of India (UIDAI)
to recommend an implementable solution for direct transfer of subsidies on
PDS Kerosene, domestic LPG and fertilizers. The Task Force has submitted
its Interim Report to the Government on 05.07.2011, wherein it has suggested
a phase-wise approach for implementing the direct transfer of cash subsidy,
as under :
I. Kerosene :
Phase I- Direct transfer of subsidy to State Governments/UT administration.
Phase IIâ Subsidy Transfer to Beneficiaries.
II. Domestic LPG :
Phase I - Cap on consumption of subsidized cylinders for all consumers.
Phase II -Direct transfer of subsidy to consumers.
Phase III - Identify and target segmented consumers.
The Empowered Group of Ministers (EGoM) on under-recoveries of the Oil
Marketing Companies has accorded âin principleâ approval to the
recommendations of the Interim Report of the Task Force relating to
phase-wise implementation of direct transfer of cash subsidy for LPG
and Kerosene. Accordingly, the Government has taken the initiative to
launch pilot studies to introduce the changes as proposed in the Interim
Report for direct transfer of cash subsidy for domestic LPG, at Mysore
(Karnataka), and for PDS Kerosene, at Alwar, (Rajasthan).