Kerosene drought :: State wastes subsidy worth Crs
Source: The Sangai Express

Imphal, January 11 2012: Subsidy worth crores of rupees given against SK Oil by the Centre has been wasted wittingly or unwittingly by the State or due to its callousness.

Different sources revealed that SK oil can be made available to the public at reduced rate because of a large percentage of subsidy given by the Centre.

The real price of kerosene is Rs 42 per litre approximately but the Centre has giving subsidy of 42.86 per cent making it Rs 28 per litre.

This enables dealers to provide kerosene to the public at the rate of Rs 14 per litre.

The Centre deposits the whole subsidy amount in advance with the Indian Oil Corporation.

As fixed by the Petroleum Planning and Analysis Sale, the monthly SK oil quota for Manipur is 2112 Kls.

Against this monthly quota, the Centre has been giving subsidy of Rs 5,91,36,000 .

Whether or not the State ship in the allotted monthly quotas, the Centre always deposits the subsidy amount in advance with the IOC.

As such, the State has been losing around Rs six crores every month when the allotted quotas are not lifted.

Since the start of the economic blockade from August 1 last year, the State's monthly quotas of SK oil have not been shipped in fully.

Significantly, the State cannot lift the monthly quotas together at one time.

If the monthly quotas are not lifted on time, the State stands to lose the allotted quotas as well as the accompanying subsidies.

The total quantity of SK oil allotted to Manipur for the last five months was 10,560 Kls.

Out of these, 6336 Kls could not be lifted though the quotas for two months were shipped which means the State has forfeited Rs 17.74 crores given by the Centre as subsidy for the State's poorer families.

In spite of this huge loss, there is no assurance that the State would not lose any more kerosene quotas or the subsidies entitled to the people of Manipur.

The total quantity of SK Oil allotted to Manipur for the last quarter of the current financial year, that is January 2012 to March 2012 is 6336 Kls.

Even as this information has been intimated to the State Government by the Petroleum Planning and Analysis Sale, the State Government has not initiated any process for allocation till date.

When the allocation process is not complete, the IOC cannot initiate process for lifting the allotted quotas.

Given this situation, the State is facing a grim prospect of losing the whole SK Oil quota for the last quarter as well as the inherent subsidy of Rs 17.74 crores which has been already deposited with the IOC.

The situation is rather poignant as well as ironic as the demand for kerosene is much greater in Manipur than other States on account of the acute shortage of electric power in the State.

While the Government of India has been providing SK oil at the subsidised rate of Rs 14 per litre, people are purchasing the same commodity at the exorbitant rate of Rs 70 to Rs 100 per litre.

Sheer ineptitude and utter negligence on the part of the State Government have thrown the people into a deep sea of misery and gloom including students who are facing crucial examinations shortly with no light in sight.

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