Lok Sabha Question No. 2512 (UNSTARRED), answered on 2016-08-01
Subject: Allocation of Kerosene
Ministry: PETROLEUM AND NATURAL GAS
Asked by: RAJ KUMAR SINGH

## LOK SABHA UNSTARRED QUESTION NO.2512 TO BE ANSWERED ON 1 st  AUGUST, 2016

## ALLOCATION OF KEROSENE

2512. SHRI R.K. SINGH:

## पैट्रोलियम और प्राक ृ लिक गैस मंत्री

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

- (a)    whether a large quantum of subsidised  kerosene is being black-marketed and the poor are getting only about one third of their entitlement on higher price than the fixed price and if so, the details thereof and the reaction of the Government thereto;
- (b)    whether  the  Government  has  made  any  assessment  of  the  requirement  of subsidised kerosene in all villages in view of the large scale electrification and if so, the details and the finding thereof along with the follow up action taken thereon; and
- (c)        whether  the  Government  has  reduced/proposes  to  reduce  the  allocation  of kerosene in villages which have been electrified and if so, the details thereof and if not, the reasons therefor?

## A N S W E R

पैट्रोलियम और प्राक ृ लिक गैस मंत्रािय में राज् य मंत्री ( स् विंत्र प्राार )  ( रमन्दे  ध ीी प्ररान )

## MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF PETROLEUM & NATURAL GAS (SHRI DHARMENDRA PRADHAN)

- (a) :    As  per  the  Report  of  the  National  Council  for  Applied  Economic  Research (NCAER) of  October,  2005,  total  leakage  is  estimated  at  38.6%  of  total  sale  of  PDS kerosene and as per Economic Survey 2014-15,  estimated leakage of PDS kerosene is 41% of the total allocation of PDS Kerosene made to States/UTs for the year 2013-14.

With a view to reach the PDS kerosene to the targeted beneficiaries, it has been decided to implement Direct Benefit Transfer in Kerosene (DBTK) during 2016-17 in 39 districts identified in consultation with State Governments spread across nine  States  of the country, namely; Punjab, Gujarat, Himachal Pradesh, Madhya Pradesh, Chhatisgarh, Rajasthan,  Jharkhand,  Haryana  and  Maharashtra.  Other  States/UTs  have  also  been requested to join the Scheme.  It has also been decided that the States would be given cash incentive of 75% of subsidy savings during the first two years, 50% in the third year and 25% in the fourth  year.  In  case  the  States  voluntarily  agree  to  undertake  cuts  in kerosene allocation, beyond the savings due to DBT, a similar incentive would be given to  those  States/UTs.  Preparation  to  implement  DBTK  by  the  participating  States  is reviewed regularly.

- (b) &  (c)  :  The  Government    of  India  allocates  Public  Distribution  System  (PDS) Kerosene to States/UTs on quarterly basis for distribution under PDS for cooking and illumination only.  Further distribution within the States/UTs through their PDS network to various categories of consumers as per their respective criteria, is the responsibility of the concerned States/UTs.

PDS Kerosene allocation of  States/UTs have been rationalized since 2010-11, by taking  into  account,  inter-alia,  the  factors  such  as  increase  in  domestic  LPG/PNG connections, non-lifting of PDS Kerosene quota by the concerned States/UTs etc.

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