Question : Problem faced by Kerosene Dealers

(a) whether the implementation of Pradhan Mantri Ujjwala Yojana (PMUY) has affected the kerosene dealers/industry in the country and if so, the details thereof along with the steps taken to protect the interest of the kerosene hawkers/retailers;
(b) whether SKO dealers in Delhi have been provided 5 kg Free Trade LPG (FTL) distributorship as an alternative source of livelihood as Delhi has become kerosene free since 2013 and if so, the details thereof along with the steps taken to provide requisite land on lease for operating such 5 kg FTL distributorship;
(c) whether the Government proposes to provide requisite land from Delhi Development Authority on lease for said dealership particularly to the dealers belonging to Scheduled Castes category in view of expensive land in Delhi and if so, the details thereof along with remedial measures taken in this regard;
(d) whether the endeavour of the Government to make the country kerosene free has resulted in unemployment on large scale and if so, the details thereof and the reaction of the Government thereto along with the steps taken to protect the hawkers/retailers associated with kerosene; and
(e) whether the Government proposes to assign the distributorship of 14.5 kg LPG cylinders under PMUY to such kerosene hawkers/retailers and if so, the details thereof?

MINISTER OF PETROLEUM & NATURAL GAS (SHRI DHARMENDRA PRADHAN)
(a) : Allocation of PDS Kerosene is being made to various States/UTs for cooking and lighting purpose on quarterly basis. Further distribution of PDS Kerosene within the States/UTs under PDS network to various categories of ration card holders/consumers is made by the concerned States/UTs. Scale and criteria of distribution are also decided by respective State/UT.
Public Sector Oil Marketing Companies (OMCs) have informed that with implementation of various initiatives like Pradhan Mantri Ujjwala Yojana (PMUY), Direct
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Benefit Transfer in LPG, surrender of LPG subsidy etc. the penetration of LPG has increased significantly. In view of increase in LPG coverage and the electrification of villages, the allocation of Public Distribution System (PDS) Kerosene has been rationalized. However, the allocation of PDS Kerosene continues to States/UTs on quarterly basis.
(b) : In order to rehabilitate the SKO dealers of Kerosene Free States like Delhi, Oil Marketing Companies (OMCs) have formulated a policy for appointment of Kerosene Wholesalers as NDNE / FTL 5 Kg cylinder Retailer and /or FTL 5 kg cylinder Point of Sales on nomination basis. The above scheme is also applicable to SC category SKO dealers of Delhi.
Further, the eligibility criteria has also been relaxed for Kerosene Wholesalers in terms of Age, Qualifications, fund and size of godown, multiple dealership/ distributorship norms etc., while applying for NDNE retailer. However, upon selection, such Kerosene dealers will have to surrender their dealership prior to issuance of letter of appointment for LPG Distributorship.
Apart from the above, existing Kerosene wholesalers of OMCs have also been allowed to apply for the selection of LPG distributorship who are operating as a sole proprietor and having average allocation of less than 75 KL of Kerosene per month during the immediate preceding 12 months prior to the month of advertisement for selection of LPG distributors, and fulfilling common eligibility criteria under unified guidelines for selection of LPG distributorships. However, upon selection, such SKO dealers will have to surrender their SKO Dealership prior to issuance of letter of appointment for LPG Distributorship.
(c) : Delhi SC/ST SKO Dealer Association had represented to this Ministry requesting for facilitating allotment of land from DDA for those dealers who got offer letter from OMCs to operate Non-Domestic Non-Exempted LPG Distributorship, for construction of godown on lease/rent basis. The Ministry had taken up this issue with DDA who have informed that, as per the extant policy, the allotment of land is done through auction mode.
(d) & (e) : Government continues to allocate PDS Kerosene to States/UTs on quarterly basis except for those States/UTs which have become Kerosene free. Commission of Kerosene Wholesalers is revised from time to time.
PMUY connections are released through existing Domestic LPG distributors of Oil Marketing Companies (OMCs) across the country. Kerosene hawkers/retailers are permitted to apply for allotment of LPG distributorship subject to fulfilling terms and conditions and meeting the eligibility norms.
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