Lok Sabha Question No. 2278 (UNSTARRED), answered on 2018-01-01
Subject: Problem faced by Kerosene Dealers
Ministry: PETROLEUM AND NATURAL GAS
Asked by: KRUPAL BALAJI TUMANE, Tejpratap Singh,Yadav, ANJU BALA

## LOK SABHA UNSTARRED QUESTION NO.  2278 TO BE ANSWERED ON 1 ST  JANUARY, 2018

## PROBLEM FACED BY KEROSENE DEALERS

2278.  SHRI KRUPAL BALAJI TUMANE: SHRI TEJ PRATAP SINGH YADAV: SHRIMATI ANJU BALA:

## पैट्रोलियम और प्राक ृ लिक गैस मंत्री

Will the Minister of PETROLEUM & NATURAL GAS be pleased to state:

- (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?

## A N S W E R

पैट्रोलियम और प्राक ृ लिक गैस मंत्री

(श्री धमेन्द र प्रधा

## 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

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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