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Subsidy for kerosene, LPG to stay after APM goes

Our Bureau

NEW DELHI, Nov. 29

EVEN after the dismantling of administered pricing mechanism (APM) for the petroleum products is completed by March 31, 2002, the subsidy regime for kerosene and liquefied petroleum gas (LPG) would continue for some time in the interests of poor, vulnera ble and middle class people, the Lok Sabha was informed on Thursday.

Responding to the main question during question hour by the member, Mr.Ramjilal Suman, the Minister of Petroleum and Natural Gas, Mr. Ram Naik, said from April 1,2002 when the APM would be dismantled, there would be subsidy on kerosene to the extent of 3 3 per cent and for LPG it would be to the extent of 15 per cent. As 15 per cent subsidy on LPG would entail Rs 92 per cylinder, the Minister said that ``we will have to phase in this in such a way that middle class, lower middle class and poor people wer e not being overburdened''.

When the BJP member, Mr. Kirti Somaya, sought to know whether the softening of crude oil prices would get reflected in domestic prices of these products, the Minister said that in the global oil market the prices of crude oil has been coming down. Though immediately after September 11,2001 it shot up to $29 per barrel, the price level has been in the range of $17 to $18 per barrel, the Minister said adding that ``we will be able to pass on the benefits to consumers only when the oil pool deficit is wipe d out''. Mr. Naik said that oil pool deficit which stood at Rs 12,900 crore on March 31, 2001 is now static at Rs 12,000 crore.

To a pointed query on the devaluation of rupee vis-a-vis the dollar, the Minister said that on account of this, the increase in oil pool deficit is estimated to be around Rs 1,000 crore and Rs 3,300 crore during 1999-2000 and 2000-01 respectively. The in crease in oil pool deficit is estimated around Rs 650 crore during the period April to November, 2001 due to devaluation.

Power projects: In reply to a question from Mr.Ramshakal on the power projects in the country, the Union Power Minister, ,Mr Suresh Prabhu, said that as on November 1, 2001, there are 80 thermal power projects, aggregating 42557.5 mw and 47 hydro power p roject aggregating 12940.65 mw which have been granted techno- economic clearance by the Central Electricity Authority.

When the Congress member, Mr.Shivraj Patil, drew the attention of the arrears in the additions to capacity in the Eighth and Ninth Plan, the Minister said that though the Ninth Plan envisaged a target of 48,000 mw of new capacity addition, it had to be s caled down to 20,000 mw because of several problems including availability of coal, ability of the State government to buy power and tariff structure. As on October, 2001 the addition to capacity in the Ninth Plan was 16,833 mw.

Though the envisaged role for the private sector could not be accomplished during the Ninth Plan because of various problems, the Minister said that the NTPC has already done more than 80 per cent of the preparatory work on the Tenth Plan for the Central power sector projects.