The government is examining a viable and sustainable system of pricing of petroleum products and is addressing the issues relating to under-recoveries of State-run oil majors
Annual under-recoveries of State-run oil marketing companies (OMCs) have been estimated at Rs1.1 lakh crore, the government told the Lok Sabha today, reports PTI.
“The annual under-recoveries of the public-sector oil OMCs on sale of four sensitive petroleum products —petrol, diesel, PDS kerosene and domestic LPG—have been estimated to be around Rs1,10,000 crore,” minister of state for petroleum Jitin Prasada said during Question Hour.
The under-recoveries have been calculated assuming an average crude oil price at $85 per barrel and at a rupee-dollar exchange rate of Rs45 per dollar for the year 2010-2011, he said.
Mr Prasada said that the government has recently constituted an Empowered Group of Ministers to consider issues relating to the under-recoveries of the OMCs in the light of the recommendations of the Kirit Parikh Committee report.
The committee was set up to suggest a viable and sustainable system of pricing of petroleum products and address the issues relating to under-recoveries of the OMCs.
Mr Prasada said that with regard to pricing of petroleum products it has been the endeavour of the government to ensure that the least burden is put on consumers.
He pointed out that a subsidy of Rs300 per cylinder has been extended by the government for domestic consumers.
Replying to another question, Mr Prasada said that 26 allocations have already been made for coal bed methane while eight others were in the pipeline.
He said two million metric standard cubic meters per day (scmd) have been allocated for small and medium enterprises from the KG-D6 basin.
The allocation has been made on fallback basis to city gas distribution entities for supply to their industrial and commercial customers whose total consumption of natural gas does not exceed 50,000 scmd.
The government has set an export target of $200 billion for the fiscal 2010-11 and is confident of exceeding it
India's exports in 2009-10 fell 4.7% to $176.5 billion, as a late revival in demand failed to fill the vacuum created in the first half, reports PTI.
The country's exports fell for 13 months in a row, starting October 2008, due to the global slump in demand. Exports turned positive for the first time since the slowdown in November 2009.
The value of India’s outward shipments in 2008-09 stood at $185.3 billion.
"Some sectors continue to hurt badly like engineering, which declined by 21%, electronic goods, handicrafts, and carpets," commerce and industry minister Anand Sharma said.
As regards the performance in March, exports grew 54% to $19.9 billion. March was the fifth straight month of growth.
Mr Sharma said the export target for 2010-11 will be $200 billion. "We have a modest target of $200 billion of merchandise exports in 2010-11. We are confident of achieving the target and hopefully exceeding it,” he said.