Ad Here  
November
December
January
February
March
April
 
 
Where is Moily’s prophecy of energy independence? Rural prosperity will propel development Ending the mother of all corruption Dawn of a New Energy Era? CEA versus CEA The time for it is now Paying for sins of the past... The rebirth of the Indo-US nuclear collaboration A sound energy strategy... A praiseworthy pricing policy Current impasse short-lived… Piped gas a pipe dream Riddle wrapped in a mystery A small first step towards the state’s solar mission Game changer in unexpected way Gujarat has 2200km gas grid, TN shuns this! Maha merger – a beginning Oil sector reform: missed opportunity Why has it not fallen enough? Why ONGC should pay nothing to buy a stake into GSPC’s KG block path A sun-rise industry turning sun-set Allow market forces to shape destiny Awaiting a new(nu) year(clear)! One of a kind project... Ambitious goals, uneasy path How prepared are we for the energy transition? Anachronism of Asian premium A golden age of gas? Welcome improvements in coal production Clean energy sector catches up with thermal power Huge under-recoveries continue Clean energy sector catches up with thermal power
 
Ending the mother of all corruption

Ever since the Second World War, kerosene has been a controlled commodity and ever since Independence has been subsidised. During the last nine years, subsidies given to sell kerosene were Rs. 204,000 crore. Not only about 40 per cent of that has been diverted to enrich mostly the politically connected kerosene dealers but also to adulterate other petroleum products like diesel and petrol. This has resulted in black money generation of Rs 25,000 to Rs.30,000 crore annually. One need not be a genius to figure out the major beneficiaries of this largesse.

It is not that the poor who depend on kerosene will not be helped. Instead of PDS kerosene, they will be given subsidy through bank transfer to buy the needed quantity. It has been found that those who have access to electricity do not need kerosene; also only about two per cent use kerosene for cooking in rural areas while most use LPG in urban and semi-urban areas. It is for this reason the government finally took courage to end distributing kerosene through PDS.

Except for Tamil Nadu, no other state has protested the revolutionary policy of the Modi government to end PDS kerosene. Tamil Nadu is a state where because of extensive electrification and use of LPG for cooking, the real need for kerosene is not huge. Having realised this, the Central government has been reducing kerosene supply to the state.

Unless the public are educated on the benefits of scrapping kerosene subsidy, I will not be surprised that even with its majority, the Modi government may be forced to drop this revolutionary idea.

Author :
Reported On :
Sector :
Shoulder :
RELATED NEWS
ABOUT IE
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
 
PRIVACY POLICY
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
TERMS AND CONDITIONS
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
 
CONTACT US
S-15, Industrial Estate,
Guindy,
Chennai - 600 032.
PHONE: +91 44 22501236
EMAIL: indecom1968@gmail.com