Allocation of PDS SKO

(Updated in August 2011)

Important Links:

Overview:

Public distribution system (PDS) kerosene has been allocated to states/union territories (UTs) quarterly for cooking and illumination on a historical basis. In accordance with the policy adopted by the Government of India (GoI) in 2000, superior kerosene oil (SKO) allocation for distribution under the PDS was reduced every year beginning 2001-02 till 2005-04, taking into account the number of liquefied petroleum gas (LPG) connections released in each state/UT. While the initial allotment for 2004-05 was based on the criteria adopted hitherto, additional allocations were made during the year to meet urgent emergent demand. From 2004-05 to 2008-09 no reduction in allocations were made, however during 2009-10, allocations were restricted to the extent of quantities lifted during the previous year. In addition to the PDS allocation, SKO is also allocated to special category which includes railways, Directorate General of Supplies and Disposals (DGS&D) (government) and non-DGS&D (government). 

Allocation of PDS SKO:

PDS SKO allocation has decreased from 10.49 million metric tons (MMT) in 2000-01 to 8.758 MMT in 2010-11. The average national per capita allocation of PDS kerosene has decreased from 12.4 kg in 2000-01 to 8.43 kg in 2009-10. The details of total SKO allocation and average national per capita allocation of PDS kerosene from 2000-01 to 2010-11 is as follows:

  2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
Total SKO allocation (MT) 10490199  10022208  9606457  9275762 9013210  9163712  9163712  9163712  9151967  9104266 8758663
Average national per capita allocation (KG) 12.4 9.76 9.35 9.03 8.78 9.82 9.82 9.82 9.7 8.43 -

The year-wise trend of allocation of PDS kerosene is as follows:

Background for Allocation of PDS Kerosene during the years 2010-11 and 2011-12

In accordance with the policy adopted by the Government of India in 2000, kerosene (SKO) allocation for distribution under the Public Distribution System (PDS) was reduced every year beginning 2001-02 till 2003-04, taking into account the number of domestic LPG connections released in each State/Union Territory. While the initial allotment for 2004-05 was based on the criteria adopted hitherto, additional allocations were made during the year to meet urgent emergent demand. For the years 2005-06 to 2008-09, allocations have been maintained at the level of 2004-05, including additional allocations made during that year. Subsequently, up to 2009-10 no reduction was made from the PDS kerosene quota of the States/UTs on account of increase in LPG coverage in the States/UTs, except for the quota lapsed due to non-upliftment by the States/UTs.

However, in order to rationalize the distribution of PDS kerosene the quota from first quarter of 2010-11 of States/UTs was restricted on account of increase in domestic LPG coverage during the first three quarters of 2009-10 (April to December, 2009) and the quantity lapsed during the first half of 2009-10. The quota was not reduced in respect of states/UTs having domestic LPG coverage below the national average.

States/UTs for which Quota of PDS Kerosene has not been Reduced with Following Reasons

Below National Average LPG Coverage
Bihar
Chattishgarh
Jharkhand
Madhya Pradesh
Orissa
Puduchery
Rajasthan
Uttar Pradesh
West Bengal
Logistic/Law and Order Problems
Jammu and Kashmir
North East States
Andaman and Nicobar
Lakshadweep

Quota lapsed during first half of 2009-10 was reduced in respect of all defaulting states/UTs.

Further, for this year i.e. for 2011-12, while allocating PDS Kerosene, factors like expansion in domestic LPG penetration (during the period January to December, 2010), lapse of quota allocated during first three quarters of 2010-11 and higher consumption with respect to national average were kept in view. However, the quota was not reduced in respect of states/UTs having domestic LPG coverage below the national average. Besides, no reduction has been made in respect of J&K, North East States, A&N Islands and UT of Lakshadweep in view of the logistic/law and order problems being faced by these regions. However, quantity lapsed was reduced in respect of all defaulting states/UTs wherever applicable.

Reduction in allocation PDS SKO to Gujarat

Considerable expansion of domestic LPG in the country has taken place but corresponding adjustment in Kerosene quota was not being made. In view of this, while making allocation for 2011-12 factors like expansion in domestic LPG penetration, lapse of quota and higher per capita allocation (PCA) for states/UTs during 2010-11 were kept in view and as a consequence, quota was reduced for Gujarat along with other states. Accordingly, PDS Kerosene quota for Gujarat has been reduced from 920,556 KL (2010-11) to 673,584 KL for the year 2011-12, which comes to a decrease by 26.87 percent.

Diversion of PDS SKO

With a view to assessing the genuine demand of kerosene in different States/UTs, in December 2004, the Government commissioned a comprehensive study of the subject through the National Council for Applied Economic Research (NCAER). NCAER in their report, submitted in October, 2005, have estimated Kerosene demand in 22 States and 1 UT surveyed by them. NCAER has estimated that siphoning off of kerosene for non-household purpose is 18.1 percent, diversion of kerosene from PDS to open market is 17.9 percent and diversion of kerosene to no card households is 2.6 percent. Total leakage is thus estimated at 38.6 percent of total sale of PDS kerosene.

On the basis of leakage of PDS kerosene, States have been classified in four categories namely extremely high leakage (more than 50 percent), very high leakage (40 to 50 percent), high leakage (20 to 40 percent) and low leakage (less than 20 percent). The details are given below:

Extremely high leakage (More than 50%)

Six States

Very high leakage (40-50%)

Four States

High leakage (20-40%)

Nine States

Low leakage (Less than 20%)

Four States

Bihar, Chandigarh, Delhi, Jharkhand, Orissa and Punjab Assam Chhattisgarh, Tamil Nadu and Uttaranchal Andhra Pradesh, Gujarat, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Meghalaya, Rajasthan and Uttar Pradesh Goa, Himachal Pradesh, Kerala and West Bengal

PDS Kerosene Distribution Mechanism and Reasons for Pilferage

PDS kerosene is allocated to the states/UTs and product is delivered on Ex-MI basis i.e. from the Oil Marketing Company (OMC) depot up to the Fair Price Shop. The mechanism of distribution is decided by the state/UT governments. There are different system prevailing in different states. In some of the states, the product is lifted from the depot by SKO dealers and decanted in premises and further movement to 'Fair Price Shop' is through barrels. In certain states, kerosene dealer is responsible for handing over the product to the State Civil Supply Department at a designated place which might be Office of Civil Supply Department or the District Collectorate and onward distribution to Fair Price Shop is as per mechanism decided by them. Some of the states also insist that the product after being lifted from depot is straightaway distributed to the Fair Price Shop and the route for this is decided by these state governments. The rate for transportation by the tankers used for transporting PDS kerosene from depot to the retail point is decided by the state government. There is no control of OMCs on these vehicles and the tankers are not in their 'lock and key' or in 'Vehicle Tracking System'. As such most of the pilferage/leakage of PDS kerosene most likely takes place en-route and cases remain undetected due to lack of tracking system.

Reduction in PDS Kerosene Allocation to Rajasthan

Details of reduction in allocation of PDS Kerosene to Rajasthan during the last three years is given below:

Year Quantity reduced (in KL)
2009-10 619
2010-11 339
2011-12 238

The reduction was on account of lapse in lifting of quota for PDS Kerosene.

The national per capita PDS-SKO allocation trend is as follows:

The scale of distribution of PDS SKO per card holder is decided by the state. The state-wise allocation of PDS kerosene since 2000-01 is as follows:

SKO PDS Allocation in India (MT)
S.No. Name of States/UTs 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

2011-12

1 Andman and Nicobar 6736 6382 6000 5907 5725 5816 5816 5816 5816 5659 5640 5640
2 Andhra Pradesh 650596 603630 566113 531838 505057 517158 517158 517158 517158 517102 463658 413080
3 Arunachal Pradesh 10346 10079 9793 9447 9257 9257 9257 9257 9257 9170 9133 9049
4 Assam 273270 267475 261081 254128 251714 258007 258007 258007 258007 257893 257725 257360
5 Bihar 894246 655846 646618 637221 631639 647430 647430 647430 647430 643786 641837 638381
6 Chandigarh 15408 14729 14089 13229 13067 13067 13067 13067 9999 7181 7135 5706
7 Chhatisgarh * 150966 147977 145042 143354 146938 146938 146938 146938 145822 145504 145214
8 Dadar and Nagar Haveli 3238 3119 3003 2853 2782 2782 2782 2782 2782 2785 2363 1933
9 Daman and Diu 2438 2374 2273 2194 2118 2118 2118 2118 2118 2073 1812 1569
10 Delhi 204672 198823 188854 178756 168484 168484 168484 168484 160935 135235 108093 47767
11 Goa 28075 23639 21999 20469 19212 19212 19212 19212 19212 19209 17650 15390
12 Gujarat 832432 804436 781176 760542 743759 743759 743759 743759 743759 742668 716386 524190
13 Haryana 175633 166976 155928 146857 142068 145619 145619 145619 145619 144830 134344 122381
14 Himachal Pradesh 61434 59690 56509 53134 50537 50537 50537 50537 49409 45466 31331 25270
15 Jammu and Kashmir 92376 90544 84413 79526 75487 76044 76044 76044 76044 75326 73994 73994
16 Jharkhand * 219783 216766 213399 211175 211175 211175 211175 211175 210964 210780 210332
17 Karnataka 534360 520903 500625 480157 461478 461478 461478 461478 461478 461340 437986 419879
18 Kerala 309149 269497 236758 224243 211033 216308 216308 216308 216308 216310 175172 153404
19 Lakshadweep 921 902 874 874 795 795 795 795 795 795 794 794
20 Madhya Pradesh 685182 511168 497726 486619 476691 488609 488609 488609 488609 487845 487480 487480
21 Maharashtra 1488926 1442085 1367232 1300780 1253530 1276876 1276876 1276876 1276876 1276588 1217258 979620
22 Manipur 22781 21880 20857 20233 19907 19907 19907 19907 19907 19743 19723 19723
23 Meghalaya 21086 20597 20597 20597 20401 20401 20401 20401 20401 20359 20339 20283
24 Mizoram 8195 7284 6748 6457 6217 6217 6217 6217 6217 6181 6163 6098
25 Nagaland 14370 13513 13332 12890 12712 13312 13312 13312 13312 13318 13307 13307
26 Orissa 327777 321994 317443 311165 307295 314977 314977 314977 314977 314334 313728 312019
27 Puducherry 15363 14606 13307 12856 12058 12257 12257 12257 12257 12249 12243 8125
28 Punjab 343127 301725 272143 250329 232813 237192 237192 237192 237192 234700 222098 212106
29 Rajasthan 450930 428299 417204 406152 396500 398913 398913 398913 398913 398431 398167 397980
30 Sikkim 7895 6924 6403 5881 5283 5582 5582 5582 5582 5566 5136 5127
31 Tamil Nadu 720076 633880 582712 561660 545297 558929 558929 558929 558929 558428 493111 429068
32 Tripura 32757 32274 31545 30621 30093 30832 30832 30832 30832 30740 30584 30556
33 Uttar Pradesh 1440246 1288674 1261121 1232633 1211485 1241772 1241772 1241772 1241772 1240789 1240286 1239455
34 Uttarakhand * 112059 98454 93346 85959 89849 89849 89849 89849 89845 86428 83673
35 West Bengal 816158 795453 778784 763727 748228 752103 752103 752103 752103 751536 751275 750761
  Total Allocation 10490199 10022208 9606457 9275762 9013210 9163712 9163712 9163712 9151967 9104266 8758663 8066713

Allocation of SKO to special category:

In addition to the PDS allocation, SKO is also allocated to special category which includes railways, DGS&D (government), non-DGS&D (government) and others. The allocation of SKO to the special category in 2009-10 was 2.047 MMT. The state-wise and category-wise SKO allocation to the special category in 2009-10 is as follows:  

States

Special category SKO allocation 2009-10 (MT)
Others Railways Directorate General of Supplies & Disposals (DGS&D) (Govt.) NON-DGS & D (Govt.) Total
Haryana 338 162 9 435 944
Himachal Pradesh 349 0 0 3459 3808
Jammu and Kashmir 4726 68 10469 67391 82654
Punjab 1036 52 28 682 1798
Rajasthan 498 296 2 1264 2060
Uttar Pradesh 587 992 365 832 2776
Chandigarh 28 0 0 272 300
New Delhi 65 409 27 610 1111
Uttarakhand 266 19 1451 1467 3203
Northern region 7893 1998 12351 76412 98654
Assam 401 128 0 1839 2368
Bihar 0 147 0 9 156
Manipur 0 0 0 531 531
Meghalaya 0 0 0 279 279
Nagaland 0 0 0 367 367
Orissa 9 9 0 54 72
Sikkim 0 0 0 6252 6252
Tripura 0 0 0 66 66
West Bengal 11402 709 0 1234 13345
Arunachal Pradesh 0 0 0 3736 3736
Mizoram 0 0 0 9 9
Andaman and Nicobar 17 0 4 136 157
Jharkhand 112 45 0 102 259
Eastern region 11941 1038 4 14614 27597
Gujarat 5604 213 0 91 5908
Maharashtra 8983 467 18 341 9809
Goa 0 0 0 45 45
Daman and Diu 0 0 0 0 0
Dadra and Nagar Haveli 392 0 0 0 392
Madhya Pradesh 5350 112 0 352 5814
Chhattisgarh 166 66 0 9 241
Western region 20495 858 18 838 22209
Andhra Pradesh 3036 364 0 99 3499
Karnataka 2978 100 0 30 3108
Kerala 8607 18 0 18 8643
Tamil Nadu 40541 363 0 157 41061
Puducherry 25 0 0 0 25
Lakshadweep 0 0 0 0 0
Southern region 55187 845 0 304 56336
Total 95516 4739 12373 92168 204796

Per Capita Allocation of PDS kerosene in States/Union Territories (in Liters)

States/Uts Population as on 1st March, 2011 Allocation in KL Allocation in MT PCA Allocation in KL Allocation in MT PCA Allocation in MT PCA Allocation in MT PCA
2011-12 2010-11 2009-10 2008-09
Andaman and Nicobar Islands 379,944 7,248 5,640 19.08 7248 5,640 19.08 5,659 19.14 5816 19.67
Andhra Pradesh 84,665,533 530808 413080 6.27 595800 463658 7.04 517102 7.85 517158 7.85
Arunachal Pradesh 1,382,611 11628 9049 8.41 11736 9133 8.49 9170 8.52 9257 8.60
Assam 31,169,272 330708 257360 10.61 331176 257725 10.63 257893 10.63 258007 10.64
Bihar 103,804,637 820320 638381 7.90 824760 641837 7.95 643786 7.97 647430 8.01
Chandigarh 1,054,686 7332 5706 6.9S 9168 7135 8.69 7181 8.75 9999 12.18
Chattishgarh 25,540,196 186600 145214 7.31 186972 145504 7.32 145822 7.34 146938 7.39
Dadar and Nagar Haveli 342,853 2484 1933 7.25 3036 2363 8.86 2785 10.44 2782 10.43
Daman and Diu 242,911 2016 1569 8.30 2328 1812 9.58 2073 10.97 2118 10.20
Delhi 16,753,235 61380 47767 3.66 138900 108093 8.29 135235 10.37 160935 12.34
Goa 1,457,723 19776 15390 13.57 22680 17650 15.56 19209 16.93 19212 15.94
Gujarat 60,383,628 673584 524190 11.16 920556 716386 15.25 742668 15.80 743759 7.83
Haryana 25,353,081 157260 122381 6.20 172632 134344 6.81 144830 7.34 145619 7.38
Himachal Pradesh 6,856,509 32472 25.270 4.74 40260 31331 5.87 45466 8.52 49409 9.26
Jammu and Kashmir 1,2548,926 95082 73994 7.58 95082 73994 7.58 75326 7.71 76044 7.79
Jharkhand 32,966,238 270276 210332 8.20 270852 210780 8.22 210964 8.22 211175 8.23
Karnataka 61,130,704 539544 419879 8.83 562812 437986 9.21 461340 9.70 461478 9.70
Kerala 33,387,677 197124 153404 5.90 225096 175172 6.74 216310 8.33 216308 8.33
Lakshadweep 64429 1020 794 15.83 1020 794 15.83 795 15.86 795 15.86
Madhya Pradesh 72597565 626412 487480 8.63 626412 487480 8.63 487845 8.64 488609 8.65
Maharashtra 112372972 1258812 979620 11.20 1564176 1217258 13.92 1276588 14.60 1276876 14.60
Manipur 2721756 25344 19723 9.31 25344 19723 9.31 19743 9.32 19907 9.40
Meghalaya 2964007 26064 20283 8.79 26136 20339 8.82 20359 8.83 20401 8.34
Mizoram 1091014 7836 6098 7.18 7920 6163 7.26 6181 7.28 6217 7.32
Nagaland 1980602 17100 13307 8.63 17100 13307 8.63 13318 8.64 13312 8.64
Orissa 41947358 400944 312019 9.56 403140 313728 9.61 314334 9.63 314977 9.65
Puducherry 1244464 10440 8125 8.39 15732 12243 12.64 12249 12.65 12257 12.66
Punjab 27704236 272556 212106 9.84 285396 222098 10.30 234700 10.89 237192 12.00
Rajasthan 68621012 511404 397980 7.45 511644 398167 7.46 398431 7.46 398913 7.47
Sikkim 607688 6588 5127 10.84 6600 5136 10.86 5566 11.77 5582 12.80
Tamil Nadu 72138958 551352 429068 7.64 633648 493111 8.78 558428 9.95 558929 9.96
Tripura 3671032 39264 30556 10.70 39300 30584 10.71 30740 10.76 30832 10.79
Uttar Pradesh 199581477 1592700 1239455 7.98 1593768 1240286 7.99 1240789 7.99 1241772 8.00
Uttaranchal 10116752 _ 107520 83673 10.63 111060 86428 10.98 89845 11.41 89849 12.41
West Bengal 91347736 964728 750761 10.56 965388 751275 10.57 751536 10.57 752103 10.58
National Average 1210193422 10365726 8066713 8.57 11254878 8758660 9.30 9104266 9.67 9151967 9.72
National Average in KG       6.67     7.24   7.52   7.56

Pattern of PDS SKO Allocation in the State/Union Territories

States/Uts

Without LPG

With LPG (SBC)

DBC

A&N Islands

1.5 litres

1.5 litres

 

Andhra Pradesh

Hyderabad - 7-19 litres

Municipal Corpn- 6-10 litre

Rural - 3 litres

2 litres

No kerosene allocation.

Arunachal Pradesh

Data not available

 

Assam

5 litres/ month

3.5 litres average/month.

 

Bihar

Rural - 3 litres

Urban - 2.5 litres

Rural - 3 litres

Urban - 2.5 litres

 

Chandigarh

1 Unit - 4 litres

2-3 Units - 8 litres 4

above Unit -12 litres

3 litres

 

Chattishgarh

4 litres

2 litres

No kerosene allocation. •

Dadra and Nagar Haveli

10 litres per card

3 litres per card

 

Daman and Diu

1.5 litres per person

1.5 litres per card

 

Delhi

13.5 litres per card - APL 12 -22 litres -BPL

No kerosene allocation.

No kerosene allocation.

Goa

2 litres per person

2-5 litres per card

 

Gujarat

10 litres/ month

No kerosene allocation.

 

Haryana

10 litre - BPL/AAY 3 litre-APL

No kerosene allocation.

No kerosene allocation.

Himachal Pradesh

Tribal areas : 25 litre/month Non-tribal - 20 litre/month

Tribal: 10 litre/month Non-tribal-3 litre/month

 

Jammu and Kashmir

5-7 litre/ month

5-7 litre/ month

 

Jharkhand

Rural - 4 litres Urban - 3 litres

Rural - 4 litres Urban - 3 litres

 

Karnataka

Rural - 4 litres Urban - 6-8 litres

No kerosene allocation.

 

Kerala

Electrified - 2 litres

Non-electrified - 5 litres

Addl for non-LPG - 6 litres

Electrified - 2 litres Non-electrified - 5 litres

 

Lakshadweep

5 litres/month

5 litres/month

 

Madhya Pradesh

Rural - 5 litres Urban - 3 litres

Rural - 2.5 litres Urban-1.5 litres

 

Maharashtra

Mumbai/Thane - 5-24 litres

Municipal Corpn-3-24 litres

Taluka HQ - 2-20 litres

Rural - 2-15 litres

4 litres average/month

 

Manipur

Data not available

 

Meghalaya

Rural - 4 litres Urban - 9 litres

Rural - 4 litres Urban - 9 litres

 

Mizoram

Data not available

 

Nagaland

Data not available

 

Orissa

4 litres/month

4 litres/month

Note: 500 ml non card holders.

Puducherry

BPL-7 litres APL - 4 litres

BPL - 7 litres APL -1 litres

No kerosene allocation.

Punjab

Rural - 6 litres Urban - 8 litres

4 litres average/month

No kerosene allocation.

Rajasthan

5 litres/month

2 litres/month.

No kerosene allocation.

Sikkim

1-1.5 litre/per head

1-1.5 litre/per head

 

 

Hilly areas

Distt HQ -15 litres

Township -10 litres

Village Panchayats - 10 litres

Hilly areas

Distt HQ - 3 litres

Township - 3 litres

Village Panchayat - 3 litres

No kerosene allocation.

Tamil Nadu

General areas

Distt HQ -10 litres

Municipalities - 6 litres

Township - 5 litres

Village Panchayats - 3 litres

General areas

Distt HQ - 3 litres

Municipalities - 3 litres

Township - 3 litres

Village Panchayats - 3 litres

No kerosene allocation.

Tripura

Rural -1 litre per head Urban - 500 ml per head

Rural -1 litre per head Urban - 500 ml per head

 

Uttar Pradesh

5 litres/month

3 litres/month

 

Uttrakhand

7 litres/month

3 litres average/month

No kerosene allocation.

West Bengal

Kolkata - 2 litres/per head 900 ml rest of the area

Kolkata-2 litres/ perhead 900 ml rest of the area

 

 

 

 

 

Conclusion:

As reflected above, SKO allocation for PDS has decreased 10.49 million metric tons (MMT) in 2000-01 to 8.758 MMT in 2010-11. In addition to the PDS allocation, SKO is also allocated to special category which includes railways, DGS&D (government) and non-DGS&D (government). GoI is planning to implement or is in process of implementing smart card system for PDS-SKO allocation. With the implementation of unique identification (UID) project and association of UID project with SKO-PDS allocation, GoI would be able to direct the subsidized SKO directly to the below poverty line (BPL) families and hence save on the subsidy and under-recovery associated with PDS-SKO allocation. In addition to this, association of UID with PDS-SKO allocation would also reduce/prevent the adulteration of diesel with SKO and grey-marketing to neighboring countries. 

 

 

 

Latest News Items. (Click for More)
SC to hear TN plea on reducing kerosene allocation today 5/7/2013 12:00:00 AM
 
  • The Supreme Court will hear on Tuesday the Tamil Nadu government’s appeal seeking quashing of the central government circular that reduced the kerosene allocation to the state by 55% since June 2011. A bench headed by Chief Justice Altamas Kabir will hear on Tuesday the state’s plea against the March 20 circular reducing the kerosene quota for Tamil Nadu. It also alleged that the Centre was adopting an indifferent attitude to the legitimate and genuine demands of the state. Challenging the basis of the circular, the TN government stated that the reduction of kerosene quota had been made on flimsy grounds. “The kerosene is allocated under the PDS SKO (Public Distribution System-Superior Kerosene Oil) by the ministry of petroleum and natural gas and it is being distributed to family card holders under the PDS by the states.”

  • Seeking allotment of a total of 65,140 KL of superior kerosene oil per month against the present reduced quantity of 29,060 KL per month, the state government stated that there was a huge demand for kerosene for cooking and illumination purposes as the power crisis has resulted in extra consumption of kerosene and also increase in the demand especially from poor sections of the society. Alleging that the Centre’s decision to reduce the quota has resulted in a severe shortfall, affecting over 83 lakh family card holders, in addition to 15 lakh eligible card holders, the petition said that “the unjust and arbitrary under-allocation of kerosene by the Centre to the extent of more than 55% is unjustified.”

  • While Tamil Nadu chief minister Jayalalithaa had made several representations for enhancing the allocation to 65,140 KL per month, the ministry instead of considering the same had in July 2011 sent a reply stating that the allocation had been reduced in view of the LPG coverage of 77% in the state and also due to lapse of quota allocated and the higher consumption with respect to national average. However, the state government stated that the reasoning “was totally false as the LPG coverage cannot be taken as 77% in the state… With the said reduction and insufficient monthly allotment of kerosene made to TN over last two years, the PDS in the state has been subjected to severe stress. It will be very difficult for the state to meet the genuine requirements of kerosene for the card holders,” the state government added.



 
Dieselization of the Economy and Low Growth in Petroleum Product Consumption, Potential Causes of Worry 6/11/2012 12:00:00 AM
 

April recorded the lowest monthly growth of petroleum product consumption at 0.2% in the last one-and-half years. Analysis reveals that about 47% of petroleum product consumption in April consisted of diesel, which is a rare phenomenon and has emerged as a new trend in the last couple of months. This is one strong indicator of dieselization of the economy due to price distortion among competing fuels. Seven of the twelve products recorded negative growth and one product low growth in April reflecting pessimistic economic scenario. But for the high growth in HSD the total all products growth would have been in negative zone.

  • Petrol - After the high of March (11.5% growth) MS consumption in April returned to more familiar territory at 3.7% growth.
  • HSD - Diesel growth remained robust at 8% in April. Substitution of FO by diesel is cited as one of the reasons for increased diesel consumption.
  • LPG - LPG growth was moderate at 6.5% in April. Availability constraint in the product is adversely affecting consumption.
  • Naphtha - Naphtha recorded negative growth of -9.7% in April. All sectors -Power, Fertilizer, Petrochem and steel recorded negative growth in consumption.
  • ATF - Second month in a row ATF recorded negative growth reflecting the turbulence in the aviation sector. April growth was -1.7% over the corresponding month last year.
  • Bitumen - Bitumen started the New Year with negative growth of -6.4% in April. Decline in consumption is attributed to lesser activity in the road construction space.
  • FO/LSHS - FO/LSHS recorded high negative growth of -25.5% in April even on a low base.
  • SKO - Significant reduction in PDS Kerosene allocation to states like Punjab, Haryana, Goa, Uttrakhand, Chandigarh, Delhi, Goa, Gujarat, Maharashtra, A.P., Kerala and Tamil Nadu due to the process of rationalization.

Read More about petroleum product consumption during April 2012 Here.



 
Ministry of Petroleum and Natural Gas clarifies cut in Kerosene quota for Gujarat 6/4/2011 12:00:00 AM
 
  • The Ministry of Petroleum and Natural Gas has issued a clarification on reports that kerosene quota to Gujarat has been curtailed. In a statement issued here on Friday, the Ministry said kerosene allocation to Gujarat during 2005-06 was 95,5730 kilolitre (KL). This came down to 92,0556 KL in 2010-11 and 67,3584 KL in 2011-12. It said during 2005-06 to 2010-11, the number of LPG connections in Gujarat increased from 47.39 lakh to 62.41 lakh, approximately a 32 per cent rise. Further, about 6.5 lakh households have piped natural gas in the State. In view of this, its requirement of kerosene for PDS has correspondingly come down, it said.

  • In 2010-11, Gujarat had per capita availability of kerosene of 15.7 litres annually compared with between 6 to 8 litres a year in Himachal Pradesh, Kerala, Haryana, Andhra Pradesh, Rajasthan and Uttar Pradesh. “As the kerosene requirement for an individual remains the same throughout the country, there was a need to bring kerosene quota of Gujarat in line with the national average which stands at 9.5 litres per person per year,” it said.

  • Also, the Ministry said diversion of PDS SKO for adulteration of auto fuel by unscrupulous persons cannot be ruled out in view of the substantial price difference. “This is a major issue in Gujarat and in other States. In view of this, the government has been taking several steps to plug the menace of diversion of subsidised PDS SKO, including rationalisation in allocation of this product,” it said.



 
Subsidy Scheme - Nemesis of OMCs - III: Projected Under Recoveries 2010-11 to 2014-15 10/5/2009 12:00:00 AM
 
  • Methodology: For projecting under-recoveries of OMCs it is necessary to forecast two variables, i.e. (i) the prices of petroleum products in the international market upto 2015-16 and (ii) the demand for petrol, diesel, LPG and SKO in India upto 2015-16. The following methodology has been applied to project prices and demand for the present exercise.

  • Price: Long-term projections of prices in the oil sector are made by the internationally reputed agencies in both government and private sectors. Price projections for crude oil and products are published by the Energy Information Administration (EIA) of the US Govt., International Energy Agency (IEA) of OECD as also private agencies such as PIRA in USA and NYMEX. NYMEX, being the world's largest commodity futures exchange and pre-eminent trading forum for energy and precious metals, pioneered the development of energy futures and options contracts in 1978 as means of bringing price transparency and risk management to this vital market. The projections made by these agencies have been considered for this exercise. In comparison, EIA, PIRA & NYMEX provide the latest projections and these have been used to derive estimates of under-recoveries.

  • Demand: For projecting domestic demand for petroleum products, we have considered two scenarios: Scenario I: (Reference Case Scenario with no revision in prices) Scenario II: ( Business Case Scenario with freedom to OMCs to fix prices). In order to project demand under these two alternative scenarios, two distinct periods in the past have been identified to derive the demand growth parameters: (i) The period from 2002-03 to 2004-05 representing the Post-APM period when price revision took place in response to changes in prices in international market, (ii) The period from 2005-06 to 2008-09, when domestic prices remained nearly frozen.

  • Demand (Elasticity: In long-term demand projections, the elasticity of demand to prices and income play an important role. International Energy Agency (IEA) of OECD, Paris has provided a detailed analysis of price and income elasticity of demand of petroleum products in its World Energy Outlook, 2006. According to IEA, the weighted average crude oil price elasticity of total oil demand across all regions is -0.03 in the short-term and -0.15 in the long -term, based on econometric analysis of historical demand trends. In simple terms, it means that "a permanent doubling of the crude oil price would be expected to cut oil demand by about 3% in the same year and 15% after more than ten years", assuming that this elasticity remains constant and all other factors remain equal. In contrast to price elasticity of demand for oil, income elasticities of oil demand are higher. The weighted average income elasticity worldwide is 0.09 in the short-term and 0.48 in the long-term. In simple terms, "a sustained one-off 10% increase in income would ultimately drive up oil demand by about 5%". (d) While the above elasticity coefficients have not been explicitly used in PPAC's projections for 2015-16, the historical demand trends selected for projection of petroleum product demand in a way reflect the interplay of price and income elasticity of oil demand.

Projections 

  • Prices: The details of price projections for crude oil and sensitive petroleum products made by different agencies are as per table below.

Table 5: Crude Oil Price Projections 2010-2020

(Nominal US $/bbl)

 

 

EIA* PIRA** NYMEX***
Imported Low sulphur light crude oil Imported crude oil Dated Brent Light Sweet Crude Oil Futures
2010 84.42 81.69 79.62 72.61
2011 94.13 91.37 88.25 75.87
2012 105.35 102.99 88.16 77.80
2013 112.93 110.56 91.89 79.67
2014 121.15 118.82 95.17 81.65
2015 127.84 125.57 100.17 84.31
2020 149.14 144.74 132.23  

* EIA price is taken from Annual Economic Outlook 2009 (Report #: DOE/EIA-0383 (2009) dated March'09.

**PIRA price is based on their estimates as on 03-08-09.

***NYMEX price is based on quotes dated 03-09-09.

Table 6: Product Price Projections 2010-2014

($/bb)

Product

Agencies

2010

2011

2012

2013

2014

Petrol

Unleaded 92 RON Singapore

EIA

90.57

101.30

114.20

122.59

131.74

PIRA

83.62

90.25

89.97

93.86

97.47

NYMEX

80.51

84.12

86.26

88.34

90.53

GasoilO.5% Arab Gulf

EIA

94.06

105.20

118.59

127.31

136.81

PIRA

86.96

92.89

92.86

96.43

100.17

NYMEX

83.61

87.36

89.58

91.74

94.02

Kerosene Arab Gulf

EIA

97.59

109.15

123.05

132.09

141.95

PIRA

89.22

95.32

95.47

99.35

103.30

NYMEX

86.75

90.64

92.95

95.18

97.55

LPG

EIA

672.75

752.44

848.21

910.54

978.51

PIRA

650.68

721.20

720.47

750.98

777.72

NYMEX

598.00

624.79

640.71

656.15

672.42

  • Demand

  • The demand for petroleum products have been growing rapidly since 2001-02 onwards: The detailed consumption pattern of petroleum products since 2002-03 till 2007-08 and estimates of 2008-09 are enclosed as per Annexure-lll. As regards-projections for the future period 2009-2014, the same has been done under two scenarios (i) Reference Case Scenario where it has been assumed that full international price impact would not be passed on to the consumers & price increases would be restricted as in the recent past and (ii) Business Case Scenario, where certain growth rates have been assumed as explained below.

  • Assumptions:

  1. Domestic retail selling prices as on 1st September'09 have been assumed to prevail during the projection period. The impact of revisions in domestic retail selling prices has not been considered in the projections. The impact of increase in domestic retail prices has been separately quantified in para 18.

  2. Forecast of international oil prices have been given for calendar year. Calendar year quotes have been considered for financial year. For example, prices for year 2010 have been considered for financial year 2010-11.

  3. Constant Dollar / Rupee Exchange Rate of Rs.48.50 has been considered for computing the under recoveries up to the year 2014-15. The impact of variation in exchange rate by Rs.1/ with respect to US dollar is given in para 20.

  4. Current customs duty structure of nil duty on crude, PDS Kerosene and Domestic LPG and 2.50% for petrol and diesel has been assumed to continue up to 2014-15.

  5. Marketing costs have been considered at 2009-10 level.

  6. The assumptions for projected sales volume are given as under:

  • Reference Case Scenario

  1. Scenario-1 projections from 2010-11 the CARG growth rates of last four years (2005-06 to 2008-09) have been applied.

  2. There would be freeze on Kerosene allocation.

    Business Case Scenario

  3. Kerosene projections are based on assumption that PDS allocation would be restricted to BPL families only and others would be charged market price of Kerosene. As per NCAER report there would be immediate saving of 41.2% in PDS Kerosene by restricting allocation to BPL families. Moreover, increasing rural electrification and LPG penetration also reduces demand of SKO by rural households (See NSSO Rounds). As adjustments will take time and a steep reduction of 40% in SKO allocation in one year does not appear feasible, a gradual reduction of 10% a year during a 4-year period from 2010-11 is assumed, thereafter 5% reduction is assumed (to account for normal decline in number of households using SKO).

  4. For LPG the growth rate has been reduced by 0.5% every year from 2010-11 to incorporate impact of Piped Natural Gas.

  • Under Recovery Projections: The gross under-recoveries have been calculated taking into account the crude oil prices as per table 5 and the product prices as per table 6 above. Based on the above price and demand assumptions, the PSU under-recoveries on sale of four sensitive petroleum products have been estimated separately for each set of projections given by the international agencies, viz. EIA, PIRA & NYMEX;



 
Possible strategies towards Reforming Subsidy Management -I: PDS Kerosene and LPG 10/5/2009 12:00:00 AM
 
  • The Public Distribution System of Kerosene in the Country: Kerosene accounted for about 6.9% of total consumption of petroleum products in 2008-09. Around 98% of total Kerosene consumption in the country is distributed by the Government through the Public Distribution System (PDS). PDS Kerosene is allocated to each State by the Central Government. PDS Kerosene prices have not been revised since 1.4.2002 resulting in mounting subsidy / under-recoveries to oil companies.

  • Demand For Kerosene: Trend and Outlook: Surveys and studies conducted by reputed national agencies and research institutions at different periods of time have identified two broad trends: (i) the percentage of households using kerosene both for lighting and cooking purposes has been declining since the last decade, (ii) There is diversion of heavily subsidized kerosene distributed though the PDS to unintended uses including adulteration. The National Sample Survey Organization (NSSO) of the Ministry of Statistics and Programme Implementation, Govt, of India undertakes annual Household Consumer Expenditure Survey in the country, it provides detailed information on state-wise consumption of SKO and LPG. The all-India percentage of households in the rural and urban sectors using kerosene and LPG for lighting and cooking purposes since 1999-2000 has been given in Tablel. Table 2 provides percentage of households using LPG and SKO in different states during 2005-2006.

Table 1: Percentage of Households using IPQ and SKO as Primary Source of Energy (per 100 households)

Period

RURAL

URBAN

Firewood

LPG

SKO

Firewood

LPG

SKO

Cooking            

1999-2000

75,5

5.4

2.7

22.3

44.2

21.7

2000-01

75.4

7.2

2.4

21.0

47.2

19.4

2001-02

73.4

8.1

2.0

23.0

49.9

15.3

2002-03

74.3

8.5

1.6

21.2

51.2

14.8

20*03-04

74.9

9.1

1.9

20.2

55.4

13.0

2004-05

75.7

9.0

0.9

21.5

56.4

10.4

2005-06

74.0

9.3

1.0

20.9

57.1

9.2

Lighting

1999-2000

 

 

50.6

 

 

10.3

2000-01

 

 

47.8

 

 

9.0

2001-02

 

 

40.2

 

 

7.8

2002-03

 

 

47.4

 

 

8.3

2003-04

 

 

46.6

 

 

8.3

2004-05

 

 

45.6

 

 

7.0

2005-06

 

 

42.0

 

 

7.2

Source: NSSO, 60th and 62nd Round, 2007-2008

The following trends can be seen:

  1. The rural households use SKO mostly for lighting purpose. However, the percentage of rural households using SKO for both lighting and cooking purposes is on the decline since 1999-2000. The percentage of rural households using SKO for lighting has consistently declined from 50.6% in 1999-2000 to 42% in 2005-06. Similarly, the percentage of rural households using SKO for cooking has declined from 2.7% in 1999-2000 to 1% in 2005-06.

  2. In contrast, urban households used SKO more for cooking than lighting. However, like the rural bouseholds, the  urban trend is on the decline. Around 7.2% of urban households used SKO for lighting in 2005-06, down from 10.3% in 1999-2000. Similarly, 9.2% urban households used SKO for cooking, down from 21.7% in 19S9-2000.

  3. The continuous decline in use of SKO for lighting is on account of increasing rural electrification whereas the decline in use of SKO for cooking is on account of increasing percentage of households using LPG.

Table 2: Percentage of Households using LPG and SKO - By State, 2005-06

High/Middle Income States

LPG (Cooking)

SKO (Cooking)

SKO (Lighting)

Rural

Urban

Rural

Urban

Rural

Urban

Punjab

28.7

74.7

1.8

10.8

0.5

1.0

Haryana

22.2

67.3

0.2

9.6

5.5

5.4

UTs

20.8

52.9

22.5

11.5

8.3

0

A.P.

11.0

61.4

0.5

8.4

15.6

2.7

Karnataka

7.0

47.5

1.8

16.7

17.3

4.2

Kerala

18.7

41.7

0.6

0.5

13.8

6.8

Low Income States

 

 

 

 

 

 

Assam

11.6

70.2

0.6

9.7

64.8

7.3

Bihar

2.0

41.3

0.1

7.2

83.8

27.7

Madhya Pradesh

2.8

66.2

0.3

3.0

32.9

4.1

Orissa

2.8

41.8

0

7.9

63.9

13.3

U.P

6.7

56.2

0.0

2.2

69.6

16.1

All India

9.3 

 57.1

1.0

9.2

42.0

7.2

NSSO, 62nd Round, January 2008
  • A state-wise comparison (Table 2) of SKO consumption during 2005-06 provide further insight into the regional pattern of SKO consumption in the country, as outline below.

    • In the high income states like Punjab, Haryana and UTs, a "much smaller percentage of households use SKO for lighting than m low income states.

    • In contrast, there is generally much 3ess variation among the states in terms of SKO being used as cooking across the states. However, the percentage of households using SKO for cooking is only 9.2% for the urban segment and 1 % for the rural segment.

  • The above analysis dearly establishes that with rise in per capita income, increasing electrification and increasing supply of LPG in the rural sector the demand for SKO declines. Studies have shown the extent of diversion of kerosene for unintended uses, particularly for adulteration with diesel.

    • The India Development Foundation (IDF) carried out a study in 2004 sponsored by the World Bank. Relying on the data available in the NSSO rounds of consumption expenditure surveys in 1993-94 and 1999-2000, it had estimated that 50% of government supplies never reached households.

    • The National Council of Applied Economic Research (NCAER) undertook a comprehensive survey of demand for SKO in 2005, which was sponsored by the Petroleum Planning and Analysis Cell of the Ministry of Petroleum & Natural Gas. NCAER in its report on "Comprehensive Study to Assess the Genuine Demand for Requirement of SKO" of 2005 had indicated that 38.6% of the PDS Kerosene is diverted for unintended uses.

  • In comparison to declining trend of demand for SKO, the allocation of SKO under the PDS has remained move or less stagnant in the recent years. Though between 2001-02 to 2004-05 PDS Kerosene allocation had been reduced but thereafter more or less remained at the same level as can be seen from the table below:

Table 3: Kerosene Allocation

Year

Allocation

% Growth

(Million Tonnes)

2000-01

10.49

0

2001-02

10.02

-4.5

2002-03

9.61

-4.1

2003-04

9.28

-3.4

2004-05

9.01

-2.8

2005-06

9.16

1.7

2006-07

9,16

0

2007-08

9.16

0

2008-09

9.15

-0.11

  • The Government has initiated a review of state-wise allocation of SKO under PDS. Based on analysis carried out by PPAC, as a first step PDS Kerosene allocations of Chandigarh (3068 MTs), Delhi (7549 MTs) and Himachal Pradesh (1128 MTs) were reduced during 2008-09. Further, allocation of PDS Kerosene for the 2nd quarter of 2009-10 has been restricted to the States/UTs as per their actual upliftment during the year 2008-09 resulting in minor reduction in allocation for most of the States.



 
Possible strategies towards Reforming Subsidy Management -II: Scientific framework 10/5/2009 12:00:00 AM
 

It is imperative that the state-wise allocation of Kerosene under PDS is rationalized based on scientific factors, which are explained below.

  • Linkage of Kerosene allocation with release of LPG connections & Rural Electrification: The major reason for reduction in PDS Kerosene allocation between 2001-02 to 2004-05 was linkage of Kerosene allocation with release of new LPG connections as use of LPG for cooking reduces the requirements of PDS Kerosene for cooking purposes. However, this linkage was discontinued from 2005 as a result of which there has been no reduction in allocation. Oil companies have been releasing huge quantity of new LPG connections year after year as can be seen from the rising number of LPG customers over the years. (Table 4)

    Table 4: Domestic LPG Customers since 2005

    As on

    No. of Domestic Customers (Lakhs)

    1.4.2005

    842

    1.4.2006

    886

    1.4.2007

    943

    1.4.2008

    1010

    1.4.2009

    1057

    • The Rangarajan Committee in June 2006 had recommended that subsidized Kerosene could be distributed only to BPL families. This will reduce the subsidy burden by 40%. The Government has approved the proposal to rationalize'1 SKO allocation to States on the basis of LPG connections in each state. In addition, the SKO allocation is to be restricted to the number of BPL families in each state on the basis of estimates of Planning Commission.

    • In addition to above, there has been significant progress in rural electrification. As per the Ministry of Power Statistics (Powermin.nic.in) rural electrification in the country has made good progress with 83.1 % of villages having already been electrified. There are 6 states and 5 UTs, which have achieved 100% electrification and another 9 States with over 90% electrification. Hence, need for PDS Kerosene for lighting purpose, which is the major end; -use of Kerosene, has been significantly reduced. Therefore, rationalization of SKO allocation to the states can be done on the basis of scientific assessment to extent of rural electrification and expansion of LPG markets and consumers in each state.

  • Jan Kerosene Pariyojna (JKP): In an effort to better target subsidy on PDS Kerosene, the Government launched a scheme by the name of "Jan Kerosene Pariyojna" (JKP) w.e.f 2nd October, 2005 in 414 blocks in 23 States and one UT. Under this scheme, oil companies have created infrastructure at wholesaler locations in terms of providing underground tanks, dispensing units, specially painted blue barrels and barrel sheds. Unlike the traditional system of distributing kerosene, Kerosene under JKP is delivered at wholesaler points by oil companies through dedicated tank trucks fitted with Global Positioning System (GPS). Based on the Diagnostic Study conducted by National Council of Applied Economic Research (NCAER) in 2006 and reviews taken by the Government, the pilot scheme was extended periodically and last extension was up to 30.06.2008.

    • To better assess the cost benefit impact of JKP scheme, NCAER was again commissioned to conduct an Impact Assessment Study and the final report of NCAER was submitted in April, 2008. This Study was conducted in 12 States covering 120 Blocks, 360 Villages and a total of 7200 households were interviewed by NCAER. The decision to take further action on the NCAER report is pending with the Government. In its conclusion NCAER in its report has mentioned that transportation of Kerosene to dealers and consumers is the most important item in the PDS Kerosene Scheme, which needs to be rationalized to improve the effectiveness of Kerosene distribution. Besides, there could be considerable improvement in the effectiveness of PDS Kerosene in the country in case Panchayati Raj Institutions system is strengthened and its involvement in distribution of Kerosene under JKP is improved.

    • In the meantime, the State Governments of Gujarat, Rajasthan & Maharashtra discontinued the implementation of the JKP Scheme w.e.f. 30.06.2006, 01.10.2006 & 01.05.2007 respectively. The State Governments of Andhra Pradesh, Uttar Pradesh & Goa had indicated that they were not willing to continue the JKP Scheme in their respective States. In pursuance of the decision taken by the Hon'ble High Court, the scheme has since been withdrawn in the State of West Bengal.

    • NCAER had also conducted a study for Assessment of Genuine Demand of Kerosene in 2005. As per this study on the basis of leakage of PDS kerosene, States/UTs have been classified in four categories by NCAER viz. extremely high leakage (more than 50%), very high leakage (40 to 50%), high leakage (20 to 40%) and low leakage (less than 20%). The details are given below:

Extremely high leakage (More than 50%) 

Very high leakage (40- 50%) 

High leakage (20-40%) 

Low leakage (Less than 20%)

Six States

Four States

Nine States

Four States

Bihar, Chandigarh, Delhi, Jharkhand, Orissa and Punjab

Assam Chhattisgarh, Tamil Nadu and Uttaranchal

Andhra Pradesh, Gujarat, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Meghalaya, Rajasthan and Uttar Pradesh

Goa, Himachal Pradesh, Kerala and West Bengal

  • Smart Card Scheme: With the objective of ensuring that the benefit of the subsidy reaches the targeted consumers in an efficient and cost effective manner and to prevent any leakages, Ministry has proposed a pilot project on introduction of Smart Card System to monitor the distribution of PDS SKO and domestic LPG in Pune, Hyderabad and Bangalore. Main objectives of the Smart Card Projects are :

    1. Subsidized Kerosene/Domestic LPG through Smart Card would be made available to households in possession of ration cards/domestic LPG connection.

    2. The Smart Card will store biometric details of the bonafide customer, and a transaction would materialize only where the biometrics match and gets authenticated in the system.

    3. The system will record the details of transaction and a summary of transaction will be available for ascertaining the pattern/ extent of distributor.

    4. This will prevent sale of PDS SKO to non ration card holders/drawal of PDS SKO on Ghost Cards & sale of domestic LPG to commercial customers.



 
Bihar asks for increased allocation of SKO 12/21/2007 12:00:00 AM
 

The Govt. of Bihar has asked the MoPNG to increase the Kerosene allocation to the state by 34%. In this context, the State Govt. has made the following points:

  • Bihar, one of India's economically most backward States with very little of its own power generation capacity, has a per capita power consumption of only 85 kWH compared to the all India average of 612 kWH. The rural areas are severely handicapped in power supply infrastructure. Steps have been taken to improve power generation and distribution but these measures have their own gestation time.

  • To compound this, Bihar's per capita supply of K-oil is 7.81 kg against the all India average of 8.92 kg and 14.7 kg and 13.2 kg, respectively, in the highly advanced States of Gujarat and Maharashtra.

  • Similarly, the LPG supply position and coverage are very adverse. Bihar has 534 development blocks but only 307 LPG outlets most of which are in district or subdivisional headquarters.

  • Hence, the rural populace has to depend almost solely on K-oil for illumination and cooking.

  • The NSSO 2004-05 survey estimated Bihar's BPL population at 3.7 crore, i.e., 12.2% of India's 30.17 crore. The actual figures are nearer 5.4 crore.

  • Bihar has implemented the K-oil coupon scheme to ensure that the K-oil reaches the consumers and to curb its black marketing and diversion.

  • It is in the above context the state govt.  had sought a 34% increase in Bihar's monthly SKO allocation.

  • As regards the 'in principle' decision that subsidy on PDS kerosene be limited to BPL families, Bihar Govt. has reiterated that it will be grossly unfair to Bihar where, as explained above, because of very poor electric supply and no supply of LPG, both BPL and non-BPL sections in villages depend almost, solely on K-oil for both basic illumination and cooking. Moreover, the official BPL figures are based on faulty survey methodology and actually represent the very destitute. The numbers living below any acceptable definition of poverty are substantially larger. To illustrate, this it said the rural illiteracy percentage in 2001 was 56.1% whereas the rural BPL percentage was 44.3%

  • In addition, ACC to the State Govt. any dual pricing system for kerosene for BPL and APL will be administratively unworkable. As our experience of other commodities shows, this will create scope for large scale corruption. It has accordingly asked MoPNG to review its in principle' decision.

  • In view of this, the Bihar Govt. has hoped that MoPNG will appreciate Bihar's position and favourably reconsider the request to increase our allocation of SKO by 34% and stop any move to introduce dual pricing for kerosene for BPL and APL.



 
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