M A I N   N E W S

Discretionary quota revived 
Allotment of petrol stations, gas agencies
Tribune News Service

NEW DELHI, Oct 24 — Kerosene is to be replaced with cooking gas in Punjab as the entire waiting list for LPG domestic connections in the country stands liquidated and the connections become available across the counter.

It has also been decided to revive discretionary allotment of dealerships and distributorships for petrol stations, LPG and kerosene for a select group of people, including dependants of defence, paramilitary and police personnel.

The Petroleum Minister, Mr Ram Naik, said here today the Punjab Chief Minister, Mr Parkash Singh Badal, had conveyed that his state was prepared to surrender the quota for kerosene and replace it with cooking gas.

The non-availability of cheaper kerosene would ensure that diesel was not adulterated in the state and farmers had access to clean fuel, Mr Naik said. Also, the Centre would not have to subsidise two cooking fuels — kerosene and cooking gas.

Mr Naik said during the current year, the Centre would release five lakh LPG connections. Of this, three lakh connections would be for urban areas and two lakh for rural.

Describing the availability of cooking gas on demand as a “Diwali gift” for the women in the country, the minister said there were 4.12 crore connections in the country of which 1.10 crore was released between December 1999 and September this year.

The target of liquidating the waiting list was achieved in September as against December.

For achieving the feat, the government has allowed an increase in the extension of area of operation of the existing LPG distributors by setting up extension counters from 15 to 30 km in the plains and 50 to 70 km in the hills. LPG refuel sales ceiling limits have also been revised. Considerable investments in infrastructure like new bottling plants and double bottle connection releases have also helped ease the supply position.

Mr Naik said since there was no justification in giving subsidy on LPG as well as kerosene for the same customer his ministry had formulated a scheme for release of additional cooking gas connections over and above the normal entitlement in lieu of surrender of corresponding kerosene allocation. The states opting for the above scheme have to surrender the corresponding average per capita consumption of kerosene in the state for the number of families to which LPG connections would be released.

During 1999-2000, Andhra Pradesh, Maharashtra and Rajasthan opted for the scheme. Punjab is the latest entrant in the scheme. The Centre saved around 9,000 tonnes of kerosene as a result of the scheme.

Mr Naik said there would be increased focus in making available cooking gas in smaller towns and rural areas through development of new LPG distributorships. It is planned to set up 540 exclusive rural distributorships out of 2,873 new distributorships being set up.

The minister also announced the revival of discretionary allotment of dealerships and distributorships for petrol stations, LPG and kerosene. The discretionary quota was banned by the Deve Gowda government in 1996 following adverse observations by the courts.

Mr Naik said the court had not banned the discretionary quota and they only wanted proper guidelines to be laid down. 

Under the new dispensation allotment of dealerships and distributorships would be made to the following categories of persons: dependants of defence, paramilitary and police personnel who were killed in action or persons permanently disabled while performing their duties and have not been suitably rehabilitated; dependants of central and state government employees who were killed or permanently disabled while performing their duties and have not been suitably rehabilitated.

 The allotments under this quota would be made by the Petroleum Minister based on the recommendations of a committee set up under the chairmanship of the Director (Marketing) IOC, with the Directors of the HPCL, the BPCL and the Director (Petroleum), IBP, as members and the Executive Director, Oil Coordination Committee, as member secretary.

 Mr Naik said the government had already allotted 400 dealerships to dependants of Kargil martyrs.