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The Aadhaar-linked pilot project on direct transfer of subsidy for kerosene in Rajasthan has been quite successful in weeding out ghost customers.
Initial trends of the project, being implemented since December 2011 in a block in Alwar, show a significant drop of kerosene being sold under the public distribution system (PDS). This is an indication that diversion is being checked.
The Petroleum Ministry is enthused by the response. But the Minister of State for Petroleum and Natural Gas, Mr R.P.N. Singh, cautions that this is just a pilot project linked to Aadhaar, and the Ministry is checking the mechanism. “Based on the results, we will improve the mechanism,” he said. Besides, Aadhaar is yet to gain legal sanctity.
In December, sales of PDS kerosene in the Alwar block dropped by 79 per cent against the same month last year. In January, the dip was 73 per cent, and in February 82 per cent, an industry official told Business Line . Simply put, the offtake is lower than the allocation.
He said against an allocation of 84 kilolitre in December, the quantity lifted was 36 kilolitre. The case was similar in January. In February, zero quantity was lifted against the allocated quantity of 78 kilolitres.
A glance at the sale trend shows that kerosene sold under the project in December was 18 kilolitre, January – 23 kilolitre, and February – 13 kilolitre. If a quick comparison is done with the month prior to the project being launched – in November 2011, the allocation was 84 kilolitre, the quantity lifted was 84 kilolitre, and 82 kilolitre was sold.
The subsidy outgo marked is Rs 35.40 lakh for the area. If the trend continues, this will substantially come down.
Asked how the mechanism was working, the official said, PDS shop customers entitled for supplies are enrolled under the scheme, and then subsidy is directly credited to their account at least a month in advance.
The current price of kerosene is around Rs 44.50 a litre, however, it is being sold in the range of Rs 13-Rs 14 a litre. Under the scheme, the differential amount between the market price and the subsidised rate is directly transferred to the beneficiaries account, the official said.
Kerosene is sold by quotas allocated to the States – designated depots of the oil marketing companies. To encourage quick implementation, grants are being extended to the States. The Ministry has been holding meetings with officials from Food and Civil Supplies for explaining the results of the pilot project to them.
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