New Delhi : The government should explore new technology-aided options to improve the mechanism of subsidy delivery and to ensure the subsidies reach the intended beneficiaries, according to a TERI report prepared for International Institute for Sustainable Development. Such measures would also curb inefficient and illegal usage of highly subsidised fuel.
The report revisits and reviews the existing mechanism of subsidy delivery through the Public Distribution System (PDS) and examines the possibility of using cash transfers as an option for fossil fuel subsidy reform. As a country highly dependent on imported crude oil, it is crucial for India to ponder on the appropriate delivery mechanism of petroleum subsidies. “The growing cost of underrecoveries and the economy-wide ramifications of the ad hoc pricing policy have brought about the urgent need to reform pricing of petroleum products, since each year of delay is adding significantly to the costs borne by the government, the oil sector and the economy in general,” the report said. Read more
Source : www.business-standard.com