Kerosene dole may fuel solar lanterns

NEW DELHI: The poor may now hope to use non-polluting lanterns instead of carbon emitting kerosene lamps. The government is considering a proposal to use a portion of kerosene subsidy to fund distribution of solar lanterns in rural areas. The proposal, discussed in the Prime Minister���s Energy Co-ordination Committee (ECC) meeting recently, is to formalise a scheme after extensive consultation with the state governments.

The move assumes significance amidst growing concerns over rising cost of fossil fuel, particularly crude oil. India imports over 70% of its crude oil requirement.

As per the proposal, about 10% of kerosene subsidy doled out by the government could be set aside into a separate fund that may be used for funding purchase of solar lanterns for the poor, official sources said. ���Once implemented, the new proposal would only supplement government efforts by replacing a portion of smoke blowing kerosene with an environmentally friendly alternative,��� an official said.

The groups supporting green energy have been seeking abolition of subsidy on kerosene oil used in lamps for a long time. According to environmentalists, kerosene, which is highly subsidised as the fuel for the poor, mainly goes into adulteration with diesel. ���The key aspect of promoting renewable energy is to divert resources allocated to distorting subsidies for conventional energy sources, particularly if they are misused,��� an expert said.

The government has provided a sum of Rs 2,700 crore towards subsidy payments for supply of domestic LPG cylinders and kerosene oil (being sold through the public distribution system) for fiscal 2008-09. The budgetary support is just tip of the iceberg. In fact, subsidy burden shared between the government (non-budgetary support) and the oilcos is quite high. In 2007-08, under-recoveries of public sector oilcos on account of selling subsidised kerosene and cooking gas were Rs 19,128 crore and Rs 15,598 crore, respectively.

Use of kerosene for lighting lanterns is also considered to be against climate change mitigation policy signed by India. ���Kerosene subsidies while having aided the poor to obtain lighting in the past are not only incompatible with the climate change mitigation policy but also becoming exorbitant in terms of social costs due to rising fuel prices,��� an expert said.