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PILOT PROJECT FOR KEROSENE DISTRIBUTION Print E-mail

PILOT PROJECT FOR KEROSENE DISTRIBUTION

New Delhi, 6 February 2006

New Delhi, February 7 (INFA): The Union Ministry of Petroleum and Natural Gas has introduced an innovative pilot project for distribution of Kerosene oil through the public distribution system (PDS).

The project is aimed at revamping the distribution network of Kerosene, the heavily subsidized product.  The exercise would ensure that it is actually made available to the intended beneficiaries.

Effort will also be made to stop the practice of diversion of Kerosene for adulteration purposes.

Presently, the project is being implemented on pilot basis for six months in 412 blocks, covering as many as 235 States and one Union Territory.

Thereafter the working of the Scheme would be assessed and based on the experience gained.  The Government will consider scaling the scheme to cover the entire country.  The estimated expenditure on the scheme is Rs.696 crore.

The principal features of the scheme are: Public Sector Oil Marketing Companies (OMCs) will establish at least one Kerosene (SKO) dealership in each of the country’s development blocks.  In consultation with the district administration and the wholesale dealer, about 5-10 sub-wholesale points will be located in each block.

There will be dedicated fleet of tanker-trucks (TTs) for transportation of PDS kerosene to ensure widespread public information and transparency as these TTs will prominently display the special logo that is being devised for the dedicated fleet.

To bring storage dispensing services at SKO dealerships at par with the modern facilities provided at petrol and diesel outlets by OMCs at their own expense, the Ministry’s Oil Industry Development Board (OIDB) will fund OMCs to ensure the installation of the following facilities at each of the dealership covered under the pilot project: (a) storage tanks with a minimum capacity of 20 KLs; (b) calibrated dispensing pumps; (c) adequate number of barrels, appropriately decorated with the special logo, for the delivery of SKO to sub-wholesale points; and (d) one or more barrel shed.

Supplies from the depots of the OMCs to the wholesale storages and further up to sub-wholesale points will be made under the direct supervision and responsibility of the OMCs. 

Similar logos will be displayed on vehicles transporting PDS to SKO from wholesale to sub-wholesale points and from there to retail points at Fair Price Shops.

In consultation with State Governments, Panchayats and Gram Sabhas will be empowered to generally supervise the availability of PDS SKO at subsidized prices, and a reporting mechanism will be put in place for Panchayats / Gram Sabhas to report any deficiencies to the State administration and OMCs concerned.---INFA

 

 

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