The Hindu Business Line : Pilot project to revamp kerosene distribution network approved

ASSURING that the Government is taking punitive action against those indulging in adulteration of diesel by mixing kerosene, the Minister for Petroleum and Natural Gas, Mr Mani Shankar Aiyar, has said that an innovative pilot project to radically revamp the kerosene distribution network has been approved.

This is with a primary objective of ensuring that the heavily subsidised product is made available in the required quantities at subsidised prices to the intended beneficiaries, and secondly, to cap, reverse and eventually eliminate the diversion of kerosene available through public distribution system (PDS) for adulteration, the Minister informed the Lok Sabha on Thursday.

"The pilot project is to be implemented in 10 per cent of the blocks of the country for a period of six months," he said. Thereafter, the working of the scheme would be independently assessed and based on the experience gained, the Government will consider scaling up the scheme to cover the entire country, the Minister said. The details of the implementation mechanism are being worked out with the authorities concerned, he added. He also said that efforts are being made to lower the price gap between kerosene and diesel, which is one of the main causes for adulteration. On the mechanism already in place to contain adulteration, Mr Aiyar said that as advised by the Government, oil marketing companies (OMCs) have established separate wings to report to a director other than director (marketing), to specify norms and guidelines as well as oversee and monitor all activities and operations which lead to adulteration.

Further, the import of superior kerosene oil (SKO) has been canalised through OMCs to curb the misuse or diversion of SKO to parallel marketers. The OMCs have introduced tamper proof tankers connected to the Global Position System (GPS) to monitor their movement.

In a bid to rationalise the kerosene distribution system, the NCAER has been asked to prepare the first-ever study of demand for PDS kerosene in the country by different sections of society, following which a comprehensive and rational policy would be put in place to meet genuine needs of the entitled beneficiaries, he said.

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