The Hindu Business Line : Revamped plan for PDS kerosene mooted

USING his dual portfolio of the Ministry of Petroleum and Natural Gas and that of Panchayati Raj, Mr Mani Shankar Aiyar has worked out a revamped scheme to strengthen the distribution and marketing of kerosene under the public distribution system (PDS).

Since the actual supply of kerosene to the consumers takes place through a network of approximately five lakh retail points, the implementation of the scheme would require a close involvement of State governments, district administrations, Panchayati Raj institutions, voluntary organisations and consumer bodies, the Petroleum Ministry sources said.

The draft policy guidelines circulated by the Petroleum Ministry suggest that all these organisations and institutions should be involved in propagating and monitoring the scheme.

"The Panchayati Raj Ministry has given its views on how it could help in monitoring PDS so that the entitled consumer receives the product," the sources said. "It has been found that nearly half the blocks in the country do not have wholesale dealerships of kerosene and many do not have any domestic LPG agency. It is important to correct the situation to ensure that all those entitled for the product get it. Also, it is necessary to meet the growing demand of LPG," the sources said.

The Petroleum Ministry has reviewed the distribution network for PDS kerosene and drafted a proposal to strengthen it, with the objective of taking the subsidised product to the entitled consumers, an official said.

He also said that another aim is to ensure that diversion of PDS kerosene and adulteration of diesel and petrol is reduced and eventually eliminated.

As per the proposal, 5-10 sub-wholesale points would be created in consultation with the district administration.

These wholesale points will supply to retail points. The supplies to the sub-wholesale points will be made under the direct supervision of oil companies.

It has been proposed in the draft policy that oil marketing companies would establish at least one wholesale kerosene dealership in each development block with storage tanks having a minimum capacity of 20 kilo litres, electronically metered dispensing pumps, adequate number of barrels for delivery of kerosene to sub-wholesale points, and one or more barrel sheds.

Existing wholesale dealers will also be given these facilities.

As per the draft guidelines, the expenditure incurred in creation of these facilities would be borne either by the Government or the oil marketing companies.

A dedicated fleet of tanker trucks for transportation of PDS kerosene has also been suggested.

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