The Hindu Business Line : Scheme to strengthen PDS kerosene distribution from Aug, says Aiyar

THE Petroleum Ministry plans to launch the scheme for strengthening the distribution and marketing of kerosene under the public distribution system (PDS) by the first fortnight of August. This is to ensure that the subsidised product is made available to the intended consumers and is not diverted for unauthorised applications.

At present, there are no dealerships in over half of the blocks in the country. Feeling the need to address this on an urgent basis if the highly subsidised PDS kerosene is to reach the targeted beneficiaries belonging to the lower strata of the society, a pilot project has been approved by the Government for strengthening the distribution network of PDS kerosene in 10 per cent of the blocks initially.

Speaking to Business Line, the Minister for Petroleum and Natural Gas, Mr Mani Shankar Aiyar, said, "We are going to have one final round of meeting in the Ministry on May 31 and then we will have a well-prepared and a well-packaged proposal. The proposal will then be taken to the Secretaries concerned of the State Governments by the Secretary of Petroleum." This will be the pilot project.

The project would also help to create infrastructural facilities such as underground storage tanks, dispensing pumps, barrel-filling facilities and barrel storage sheds at wholesale/sub-wholesale points at block level on a pilot basis in 10 per cent of the blocks in the country initially. Based on the experience of the scheme for six months, the proposal for scaling it up to cover the entire country would be considered, he said.

The deliveries up to wholesale and sub-wholesale points would be under the Government oil marketing companies to prevent kerosene diversion. An adequate number of sub-wholesale points would be created in each block in consultation with the State and district administration.

Further, keeping in view the demands being received from various States for increasing the kerosene allocation, the Ministry has commissioned a study through National Council for Applied and Economic Research to assess the genuine demand and requirement of kerosene. Any further action to strengthen and streamline PDS kerosene supply will be taken on receipt of NCAER's report, expected in August.

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