Ramesh wants subsidy on diesel, LPG phased out

Says the needy are not benefited

PTI | May 25, 2012



In the midst of uproar over hike in petrol prices, Rural Development Minister Jairam Ramesh on Friday attacked the policy of subsidising diesel, kerosene and LPG and suggested that a roadmap be chalked out for phasing it out as the needy are not benefited.

"In our country if we combine diesel, Kerosene and LPG, Rs 1,90,000 crore is the amount of subsidy given. The budget of the entire Rural Development and Drinking Water ministries in comparison is Rs 99,000 crore," Ramesh told reporters here.

"What kind of country is this? For development of rural areas Rs 99,000 crore and such heavy subsidy for diesel SUVs. For defence we spend Rs 1,00,080 crore but give much more as subsidy," he added.

Ramesh, while responding to a question on Rs 7.5 hike in petrol price, said taxes had to be imposed on sale of petrol so that development work could be carried out in the country.

"Where does the tax go? Where does the money come for NREGA? Where does the money come for Prime Minister's Gramin Sadak Yojana? It comes from tax," he said.

At the same time, he said, subsidy should only be given to those families which are poor and for whom it is important.

He added that there were many in the country who were getting subsidy benefits without really needing them.

"There are many lower and middle income families which use LPG, but there are many rich, including myself who get subsidy on LPG cylinders despite not needing it. There is a subsidy of Rs 503 on every LPG cylinder," Ramesh said.

"I don't say that subsidies should be immediately scrapped. No Government is that insensitive. But a roadmap for the next two three years should be formed, because in such conditions economic development is not possible," he said.

Ramesh also said that 20 per cent of the diesel sold in the country was used for running SUVs while 40 per cent kerosene was adulterated.

Comments

 

Other News

Nepal Floods: India keeps close watch on the situation

India`s central government has been keeping a close watch on the situation arising out of the flash flood in Nepal on Wednesday. Union home minister Amit Shah spoke with the chief ministers of Bihar and Uttar Pradesh, the two states that share the border with Nepal, regarding the disaster

UPI completes 10 years of digital payments revolution

The Unified Payments Interface (UPI), launched on August 25, 2016 by the National Payments Corporation of India (NPCI) under the regulatory oversight of the Reserve Bank of India (RBI), has completed 10 years of transforming digital payments in India. UPI has emerged as the backbone of India’s digi

Here’s an I.D.E.A. for career growth and success

Success in today’s professional organisation is no longer solely determined by academic qualifications, technical expertise or years of experience. While these attributes do matter, organisations increasingly value individuals who demonstrate the right mindset and behavioural qualities. The ability

PM interacts with CEOs, founders of space startups

Prime minister Narendra Modi interacted with CEOs and Founders of 20 Space Startups at Seva Teerth on Friday.   CEOs of leading companies in the space sector working in diverse fields ranging from building rockets and reusable semi-cryogenic launch vehicles, avionics, satelli

From one cow to a dairy business

In 2012, Anita Dash wasn`t dreaming of building a dairy brand. She wasn`t studying business models or planning market expansion. Like countless mothers across India, her focus was on something much simpler: giving her children a better future.   At the time, her most valuable

Ethanol blending: The two sides of a story

India`s crude oil consumption is estimated to be around 88.5% imported from abroad. This one single figure is also responsible for why ethanol has become both an economic strategy and fuel policy at the same time. In an economy like India, which depends so heavily on foreign oil, any increase in internat

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter