Skip to main content

LPG decision retrograde: FICCI

Leading business chambers and rating agencies have termed retrograde the Cabinet decision to raise the number of subsidised LPG cylinders from nine to 12 per household a year, and said it would hit oil
marketing companies (OMCs).
In a statement here on Friday, Federation of Indian Chamber of Commerce and Industry president Sidharth Birla said raising the quota and delinking LPG subsidy from Aadhaar were economically retrograde at a time when fiscal considerations must be balanced with welfare measures.
“FICCI believes that the rollout of the direct cash transfer scheme last year was a step in the right direction. We need to recognise that implementation is a drawn-out process and cannot be without glitches. We do not have the luxury of taking two steps forward, one step back.”
Subsidy burden up
Global credit rating agency ICRA termed the Cabinet decision credit negative for the OMCs. “The hike in [LPG] quota is expected to increase the subsidy burden by Rs. 5,000 crore on an annual basis and adversely impact state-run OMCs, which are already reeling under a very high subsidy burden, aggravated by elevated crude oil prices and depreciation of the rupee,” it said in a statement.
The move could also result in diversion of subsidised LPG to the commercial sector and shift the burden of LPG subsidy on the OMCs, ICRA said. Its senior vice president and co-head, Corporate Ratings, K. Ravichandran, said the increase in under-recoveries of the OMCs, coupled with delays in compensation by the government, was likely to strain the OMCs’ finances further.

  • Decision on cash transfer was a right move: chamber

  • OMCs will be hit hard, says rating agency
  • Comments

    Popular posts from this blog

    Khar’s experimentation with Himalayan nettle brings recognition (downtoearth)

    Nature never fails to surprise us. In many parts of the world, natural resources are the only source of livelihood opportunities available to people. They can be in the form of wild shrubs like Daphne papyracea and Daphne bholua (paper plant) that are used to make paper or Gossypium spp (cotton) that forms the backbone of the textile industry.

    Nothing can compete with the dynamism of biological resources. Recently, Girardinia diversifolia (Himalayan nettle), a fibre-yielding plant, has become an important livelihood option for people living in the remote mountainous villages of the Hindu Kush Himalaya.

    There is a community in Khar, a hamlet in Darchula district in far-western Nepal, which produces fabrics from Himalayan nettle. The fabric and the things made from it are sold in local as well as national and international markets as high-end products.

    A Himalayan nettle value chain development initiative implemented by the Kailash Sacred Landscape Conservation and Development Initiati…

    SC asks Centre to strike a balance on Rohingya issue (.hindu)

    Supreme Court orally indicates that the government should not deport Rohingya “now” as the Centre prevails over it to not record any such views in its formal order, citing “international ramifications”.

    The Supreme Court on Friday came close to ordering the government not to deport the Rohingya.

    It finally settled on merely observing that a balance should be struck between humanitarian concern for the community and the country's national security and economic interests.

    The court was hearing a bunch of petitions, one filed by persons within the Rohingya community, against a proposed move to deport over 40,000 Rohingya refugees. A three-judge Bench, led by Chief Justice of India Dipak Misra, began by orally indicating that the government should not deport Rohingya “now”, but the government prevailed on the court to not pass any formal order, citing “international ramifications”. With this, the status quo continues even though the court gave the community liberty to approach it in …

    Cloud seeding

    Demonstrating the function of the flare rack that carries silver iodide for cloud-seeding through an aircraft. 
    Water is essential for life on the earth. Precipitation from the skies is the only source for it. India and the rest of Asia are dependent on the monsoons for rains. While the South West Monsoon is the main source for India as a whole, Tamil Nadu and coastal areas of South Andhra Pradesh get the benefit of the North East Monsoon, which is just a less dependable beat on the reversal of the South West Monsoon winds.