The finance ministry on Thursday issued a letter giving Rs11,027 crore in cash compensation to IOC, Rs 4,595 crore to BPCL and Rs 4,379 crore to HPCL. The cash subsidy payout is more than half of the over Rs78,000 crore that the three firms lost on selling auto and cooking fuel below their imported cost in FY10-11
New Delhi: The government on Thursday approved Rs20,001 crore in additional cash subsidy to state-owned oil companies to compensate them for selling fuel below cost in the last fiscal, reports PTI.
With this, the government has paid a total of Rs40,912 crore in subsidy to oil companies in 2010-11, an oil ministry official said here.
"The finance ministry yesterday issued a letter giving Rs11,027 crore in cash compensation to Indian Oil Corporation (IOC), Rs 4,595 crore to Bharat Petroleum Corporation (BPCL) and Rs 4,379 crore to Hindustan Petroleum Corporation (HPCL)," the official said.
It had in two previous instalments given Rs20,911 crore to make up for part of the revenues oil companies lost on selling diesel, domestic LPG and kerosene below cost.
The cash subsidy payout is more than half of the over Rs78,000 crore that the three firms lost on selling auto and cooking fuel below their imported cost in FY10-11.
Upstream firms like Oil and Natural Gas Corporation (ONGC) will chip in about Rs25,750 crore, leaving the fuel retailing firms to fed over Rs11,000 crore of revenue losses by themselves.
The official said fuel retailers were demanding Rs30,000 crore in cash compensation but finance ministry gave only Rs20,001 crore today.
While, petrol price was freed from the government control in June, state oil firms continue to sell diesel, domestic LPG and kerosene at government-ruled prices which is substantially lower than cost of production.
IOC, BPCL and HPCL currently lose Rs18.19 per litre on diesel, Rs29.69 per litre on kerosene and Rs329.73 per 14.2-kg LPG cylinder.
In the 2010-11, the three firms lost Rs78,202 crore, but the government has provided only Rs40,912 crore in compensation. The oil marketing firms lost Rs2,227 crore on selling petrol below imported cost during April and June before its price was freed from the government control.
They lost Rs34,384 crore on sale of diesel, Rs19,566 crore on PDS kerosene and Rs22,025 crore on sale of domestic LPG.
The official said at current prices, the total revenue loss in current fiscal is estimated at Rs180,208 crore. A fuel price hike is on cards to contain the revenue loss.
J Jayalalithaa looks set for two-third majority in Tamil Nadu; Trinamool establishes lead in three-fourths of constituencies in West Bengal; Congress-led United Democratic Front has edge over Left in Kerala
J Jayalalithaa’s All India Anna Dravida Munnetra Kazhgam (AIADMK) surprised most pollsters this morning, establishing a huge lead in counting of votes to the Tamil Nadu state assembly, while Mamata Banerjee was sweeping through West Bengal with leads in nearly three-quarters of the constituencies for which trends were available till 11 am.
In Kerala, the other Left-ruled state, the ruling CPI(M)-led alliance was struggling to hang on to power. Kerala has never returned a ruling party for a second consecutive term. The Left Front was ahead in 53 of the constituencies and the Congress-led United Democratic Front (UDF) was leading in 57 of the about 120 constituencies for which counting trends were available. The LDF had won 13 of the seats for which results were declared so far and the UDF 15. The LDF previously had 98 seats against the UDF’s 42 in the 140-member Kerala state assembly.
In West Bengal, it was a clear knockout, with the CPI(M) suffering heavy losses across the state which it has ruled uninterrupted for over three decades. Mamata Banerjee’s Trinamool Congress (TMC) in alliance with the Congress party appeared likely to win about 216 of the 285 constituencies for which trends were available. This is even bigger than the 176 seats the CPI(M) had in the 294-member house of elected representatives. The TMC had just 31 members and the Congress 20 in the previous legislative assembly.
While the TMC was expected to win easily, the surprise perhaps was in Tamil Nadu, where poll pundits had given the corruption-tainted DMK a chance. The principal opposition AIADMK was leading in 192 of the constituencies till 11 am, while the ruling DMK-Congress alliance was ahead in only 41, which is a huge comedown from the 163 seats it had in the 234-member house. Exit poll predictions had given the DMK 102-114 and the AIADMK alliance 120-132.
In Assam and Puducherry, the ruling Congress party was making good gains to be able to strengthen its position further in the two states.
In Assam, the Congress was leading in counting in 74 constituencies, compared to only seven with the Asom Gana Parishad (AGP). Other parties including the Bharatiya Janata Party were ahead in 34 constituencies, but the Congress may not need much support from the smaller parties to form the new government this time. The Congress previously had 53 members in the 126-member house.
In Puducherry, the Congress-DMK alliance was leading in 11 constituencies, against 10 with the AIADMK-AINRC, with others ahead in three constituencies. Puducherry has a 30-member legislative assembly.
The campaign keeps it simple and straight, as usual. And it’s disruptive and entertaining. One will just have to wait and see whether consumers become fans of Havells
One good thing Havells does is to keep things simple and straight for their various hardware products. This ensures the advertising agency can fly with single-minded creative work. Rather than belting out five things… tech, quality, reliability, service, guarantee, blah, blah… and thus ending up nowhere.
And that's the case with the new campaign for Havells fans as well. There are three commercials on air. In each one, a person is featured using a common device to fan him/herself for some respite from heat. In one, a man uses a newspaper to fan himself. Suddenly, some journalists gherao him. They are upset that the paper, on which they invest their blood, sweat and tears, is being used as a fan. And they gift the fellow a Havells fan. (I think usage of newspapers as fans isn't such a bad idea. When you consider most people use them to chuck really dirty stuff… can't even list them!)
In another ad, a school teacher uses exam answer sheets to fan herself. And she gets berated up her angry pupils. In the third one, a housewife fans herself with her saree pallu inside her sweltering kitchen. In arrives an elderly lady who declares that the saree has been designed using exquisite ancient craft, and that it must not be disrespected. The voice over says: 'Hawa chahiye? Havells Fan lagaaiye'.
Yes, I like this campaign. It's simple, it's disruptive, it's witty, it's wicked and it's entertaining. However, here's a concern: One can safely assume what the marketer is trying to do with this communication. And that is to own the product category and make fans synonymous with Havells. And while in theory that may sound correct, this sort of extremely generic advertising runs a big risk. Which is that while it may motivate hot and sweaty laggards to go to the market and buy themselves a fan, the choice may not necessarily be a Havells fan. Because in their attempt to keep the communication very simple, the marketer has said nothing about the brand itself. We have no idea what makes Havells special. Sure, I do realize a fan is a fan is a fan, but such generic work does come with that one big question mark.
Anyways, whichever way the wind blows, must say this is a laudable effort. It remains to be seen if indeed the consumers become fans of Havells.