NEW DELHI: To prevent diversion of PDS kerosene into the black market and plug leakages in the system, the Petroleum and Natural Gas Ministry and oil marketing companies have mooted a pilot Smart Card scheme.

The objective is to ensure that the subsidy benefitreaches the targeted consumers. Depending on the success of the scheme, it will be taken up for implementation in future.

Streamlining distribution

It is learnt that efforts by the ministry and marketing companies to streamline distribution of subsidised kerosene have met with resistance from the State Governments. "The States are reluctant even to take up pilot projects as this new scheme would bring in an element of transparency and efficiency in the system. There is a clear involvement of officials in diversion of kerosene; that is the reason any new measures are strongly opposed by the States from time to time,'' a senior Ministry official said.

Under the pilot project, subsidised kerosene would be available to below poverty line families, while all other ration cardholders would get non-subsidised kerosene.

In 2005, the Ministry and marketing companies introduced the Jan Kerosene Pariyojna in 414 blocks. Though the scheme has been extended till June this year, the response has not been enthusiastic, according to officials of marketing firms.

The companies were asked to introduce a new tamper-proof tank truck locking system to prevent en route adulteration.

To prevent the misuse and diversion of kerosene for adulteration, import by private parties has been canalised through oil marketing companies.

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