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LATEST NEWS UPDATES | No fuel subsidy cut: Reddy

No fuel subsidy cut: Reddy

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published Published on Jan 28, 2011   modified Modified on Jan 28, 2011
Maharashtra govt launches a massive crackdown on mafia.

Two days after Additional Collector Yashwant Sonawane was killed after he intercepted the adulteration of petroleum products, the Maharashtra government launched a massive crackdown on suspected adulterators in the state. Raids were carried out at over 200 locations across Maharashtra and the police have arrested some 180 people.

At the Centre, the government announced measures to prevent the adulteration of auto fuels with cheaper kerosene. But Petroleum Minister S Jaipal Reddy dismissed suggestions of reducing the subsidy on kerosene to deter its use in the adulteration of fuels.

“It is politically sensitive to remove subsidies, so not feasible. We are working in a democracy. Whatever is politically possible, for me is sensible,” he said.

Announcing an ex-gratia payment of Rs 25 lakh to Sonawane’s family, Reddy said responsibility for the distribution of subsidised kerosene through the public distribution system (PDS) rests with state governments and it was their duty to ensure that subsidised fuel is not diverted for adulteration.

“This incident has once again highlighted the problem of kerosene being used for adulteration. There is a need to respond to the problem in systematic terms,” Reddy said. The kerosene marker system (which was withdrawn in 2009) would be reintroduced in the next six months,” he said.

Reddy also said oil marketing companies would help state governments use a GPS-based vehicular tracking system to track the movement of PDS kerosene. A similar system is used for vehicles transporting petrol and diesel.

Oil companies will also provide real-time information on the loading of kerosene trucks, quantity and time of departure from their depots so that state authorities can check for any diversion, Reddy said.

A Maharashtra Police official, who did not wish to be named, told Business Standard that mafia gangs such as that of Popat Shinde — the prime suspect in the Sonawane case — work in collusion with transporters and security guards posted at oil companies.

Explaining the modus operandi of these gangs, the officer said tankers are diverted to transfer points, where fuel is pilfered. On an average, around 5,000 litres are stolen each day from approximately 200 tankers, he said. Thereafter, the petrol is adulterated with kerosene before being sent to the market. Usually, this adulterated fuel is sold at petrol pumps at cheaper rates.

Today’s drive was launched after Maharashtra Chief Minister Prithviraj Chavan and Deputy Ajit Pawar ordered action against the organised gangs. Chavan told Business Standard: “Fuel theft is a major challenge for the state government. However, I have asked the various departments and the police in particular to step up their efforts to curb adulteration and take strong action against those involved.”

State Public Works Minister Chhagan Bhujbal, who is the guardian minister of Nashik district, where Sonawane was posted, made a strong pitch for imposition of the Maharastra Organised Control of Crime Act against those involved in oil adulteration.

Nearly 1.8 million state government employees held a day-long work stoppage today to protest against Sonawane’s murder. Employees’ organisations called upon the state government to introduce legislation to make attacks on government employees a non-bailable offence.

The Business Standard, 28 January, 2011, http://www.business-standard.com/india/news/no-fuel-subsidy-cut-reddy/423251/


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