Financial Daily from THE HINDU group of publications
Wednesday, Jul 14, 2004

Cross Currency

Group Sites

Industry & Economy - Petroleum
Agri-Biz & Commodities - Agricultural Policy

Oil cos asked to work out subsidised diesel scheme for farmers

Our Bureau

New Delhi , July 13

THE Petroleum Minister, Mr Mani Shankar Aiyar, has asked the public sector oil marketing companies to study the possibility of providing diesel to farmers using diesel-fuelled pump sets and fishermen using boats powered by diesel motors.

In a meeting held last week, Mr Aiyar assured the oil companies Indian Oil Corporation, Hindustan Petroleum Corporation and Bharat Petroleum Corporation that if they could work out a delivery mechanism for the supply of subsidised diesel, then he would find the requisite funds from the Finance Ministry to pay for the subsidy.

According to oil company officials, although they have been asked to study the proposal, there is little doubt that given the tax distortions in the system, dual pricing of diesel is bound to result in leakages.

In regard to supply of subsidised diesel to fishermen, the Government already has a programme that spends around Rs 50 crore as subsidy in this regard.

However, the scheme has not been very effective on two counts. First, the quantity of subsidy is inadequate and second, the delivery mechanism is inefficient resulting in long delays in reimbursement of subsidy.

According to the oil marketing companies, if they are to implement the scheme they would require to begin with a survey of the farming community to ascertain the users of pump sets.

The oil companies are yet to get back to the Petroleum Ministry on the feasibility of the Minister's proposal to supply subsidised diesel to certain segments of users.

More Stories on : Petroleum | Agricultural Policy

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Low-pressure holds key to monsoon revival

Grasim to cut output on monsoon delay
Bio-diesel plantation in RangaReddy dist
Car sales up 25 pc in June
Brokers propose income-based transaction tax
Response to day traders' strike call lukewarm
Service tax on commodity futures — Govt may get Rs 120 cr from broking fees
Budget proposal to help value-added chicken units
Rumblings in shipping sector over tonnage tax clause
Hyderabad Goods transporters oppose service tax
`Indians have optimistic attitude towards retirement'
Kalam to inaugurate Green Business Centre today
Paving the way for dust-free Ahmedabad
Bilateral trade with China may touch $10 b this year
Victorian team holds talks with Industry Minister
Kick-start for rural hospitals a non-starter?
Rare immuno therapy for bone marrow
Aid for convention centre in Kerala
Petroleum products sales flat in June
Oil cos asked to work out subsidised diesel scheme for farmers
Ranbaxy tops in image recall: Study
Rs 200-cr monsoon bonanza for KSEB
Bidadi gas supply bidders told to match NTPC stations' terms
DEPB benefits restored for steel items
India, Bangladesh to boost ties in textile sector
Punjab issue: PM calls CMs for meet on water dispute
Govt defends leaving cigarette customs duty unchanged
Budget brings relief to cosmetics, shampoo cos
FM transmitters for Kerala
Metropolis ropes in hospitals to tap global clinical trials business
Decision on EPF interest rate deferred again
Govt urged to sort out ambiguities in patents Bill
Global Malayalee meet in Bahrain from Aug 18-21
TCS retains top slot in software, service exports
Fake document scam busted in Kadapa

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line