12-Oct-2022: Cabinet approves Rupees 22,000 crore as one time grant of PSU OMCs for losses in Domestic LPG

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, today has approved the proposal of Ministry of Petroleum & Natural Gas to give one time grant amounting to Rs.22,000 crore to three Public Sector Undertaking Oil Marketing Companies (PSU OMCs). The grant will be distributed among Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL).

The approval will help the PSU OMCs to continue their commitment to the Atmanirbhar Bharat Abhiyaan, ensuring unhindered domestic LPG  supplies and also supporting the procurement of Make in India products.

Domestic LPG Cylinders are supplied at regulated prices to consumers by the public sector Oil Marketing companies namely, IOCL, BPCL, HPCL.

During the period from June 2020 to June 2022, the international prices of LPG increased by around 300%.  However, to insulate consumers from fluctuations in international LPG prices, the cost increase was not fully passed on to consumers of domestic LPG.  Accordingly, domestic LPG prices have raised by only 72% during this period.  This has led to significant losses for these OMCs.

Despite these losses, the three PSU OMCs have ensured continuous supplies of this essential cooking fuel in the country.

9-Aug-2021: Government continues to modulate the effective price to consumer for Subsidized Domestic LPG

The Minister of State for Petroleum and Natural Gas, Shri Rameswar Teli in a written reply to a question in the Lok Sabha today informed that the total amount of fuel subsidy paid by Government since F.Y. 2011-12 is Rs. 7,03,525 cores. The Budget Estimates for F.Y. 2021-22 for LPG & Natural Gas (NG) subsidy is Rs. 12,995 crores.

The prices of petroleum products in the country are linked to the price of respective products in the international market. The Government continues to modulate the effective price to consumer for Subsidized Domestic LPG. The prices of non-subsidized Domestic LPG are however determined by the OMCs in line with changes in the international markets. The subsidy on the product increases/decreases with the increase/decrease in the product price in international market and decision of Government on subsidy.

1-Apr-2022: DBT on Fertilizer Subsidy

Department of Fertilizers has successfully implemented Direct Benefit Transfer system across all States/U.Ts by 1st March 2018. Under the fertilizer DBT system, 100% subsidy on various fertilizer grades is released to the fertilizer companies on the basis of actual sales made to farmers/buyers through Point of Sale (PoS) devices installed at each retail shop.

Two extensive & independent evaluation studies were conducted by NITI Aayog appointed agency ‘M/s. Micro Save’. The highlights of the assessment made by Microsave are as under: 

  1. Implementation of DBT System has streamlined the Fertilizer distribution. Retailers and farmers in all districts reported “Nil shortage" of urea owing to neem coating.
  2. There is improved tracking through mFMS Id i.e. Fertilizer companies have on-boarded untraceable retailers and co-operative depots on mFMS system to avoid delay in subsidy payments.
  3. Overcharging by retailers has reduced as each fertilizer purchase by farmers is supported by a receipt generated through PoS machines indicating both MRP paid by the farmers and the subsidy component paid by the Government on the quantity of fertilizer purchased by the farmers.
  4. Cross border sale has also reduced e.g. across border to Nepal and Bangladesh from Kishanganj.
  5. The reports meant for relevant Stakeholders are available at https://www.fert.nic.in and www.urvarak.nic.in under Publications/ Reports tab.

The number of buyers under DBT during the last two years is as follows:-

Year wise buyer count of all fertilizer products

   

Sl.No.

Year

No. of Aadhaar Buyer Count

1.

FY 2020-21

4,54,87,885

2.

FY 2021-22 (upto 28.03.2022)

6,69,80,127

22-Mar-2022: Subsidy on fertilizers

Urea is provided to the farmers at a statutorily notified Maximum Retail Price (MRP). The MRP of 45 kg bag of urea is Rs.242 per bag (exclusive of charges towards neem coating and taxes as applicable). The difference between the delivered cost of urea at farm gate and net market realization by the urea units is given as subsidy to the urea manufacturer/importer by the Government of India. Accordingly, all farmers (including poor and marginal farmers) are being supplied urea at the subsidized rates.

Further, the Government has implemented Nutrient Based Subsidy Policy w.e.f. 1.4.2010 for Phosphatic and Potassic (P&K) Fertilizers. Under the policy, a fixed amount of subsidy, decided on annual basis, is provided on subsidized P&K fertilizers depending on their nutrient content. Under this policy, MRP is fixed by fertilizer companies as per market dynamics at reasonable level which is monitored by the Government. Accordingly, any farmer, including poor and marginal farmers, who is buying these fertilizers is getting benefit of subsidy.          

As per the final report prepared by Agricultural Development and Rural Transformation Centre (ADRTC), Bengaluru, Neem Coated Urea has led to:

  1. Improvement in soil quality.
  2. Decrease in cost of pest & disease control and weed management.
  3. Improvement in the yield of all crops and their by-products.
  4. Highest incremental income in case of tur, followed by sugarcane, soybean, paddy, jute and maize crops.
  5. Diversion of normal urea to other than crop production purposes has completely stopped post introduction of Neem Coated Urea(NCU).

30-Mar-2022: Gender Budgeting System

The Government is committed for promoting gender equality in all sectors and at all levels of governance. Financing for gender equality is central to mitigate gender inequalities and Gender Budgeting is a critical strategy in this endeavour. The Government has adopted Gender Budgeting as a strategy to incorporate a gender perspective in all stages of policy making.

The Government has emphasised that Gender Budgeting includes gender sensitive formulation of legislation, policies, plans, programs, schemes, resource allocation, implementation, monitoring, audit and impact assessment of programs and schemes. In this regard, the Ministry has focused on (i) establishing institutional mechanisms and processes to undertake Gender Budgeting in all Ministries/Departments at the national and State/UT level and (ii) strengthening capacities and building expertise across levels of governance on undertaking Gender Budgeting.

The Ministry of Women and Child Development is implementing a scheme on Gender Budgeting to provide financial grant-in-aid to government departments, national and state training institutes and organisations to conduct training and workshops to build capacities of various stakeholders on Gender Budgeting. The funds allocated/released during the last three years are as under: 

(In Rs. Crore)

S. No.

Year

BE

RE

Released/Expenditure

1

2018-19

3.50

3.50

3.17

2

2019-20

3.50

3.50

1.70

3

2020-21

5.00

5.00

0.24*

* Due to COVID-19 pandemic, virtual trainings were conducted leading to less expenditure

The Government publishes a Gender Budget Statement (Statement13) annually along with the Union Budget. The Gender Budget Statement is a reporting mechanism for Ministries/Departments to review their programmes from a gender perspective and present information on allocations for women and girls.

In Financial Year 2021-22, 43 Ministries/Departments/Union Territories reported an amount of Rs. 1.53 Lakh Crore in the Gender Budget Statement, an increase of 7% over 2020-21 (Budget Estimates).

In Financial Year 2022-23, 41 Ministries/Departments /Union Territories reported an amount of Rs. 1.71 Lakh Crore in the Gender Budget Statement, an increase of 11.5% over 2021-22 (Budget Estimates).

29-Jul-2021: Implementation of Gender Budgeting

The Ministry of Women and Child Development has made consistent efforts to support the institutionalization of Gender Budgeting (GB) at the State/UT level. So far, 27 States/UTs have adopted Gender Budgeting and have taken various steps to address gender gaps and advance gender equality. These steps inter-alia include identification of a nodal Department for Gender Budgeting, constitution of Gender Budgeting Cells, formulation of State Women/Girls Policy, creation of Gender Data Bank and adding Gender Budget Statement in the State Budget.

The Ministry has developed a handbook for Gender Budgeting to further strengthen the process of institutionalizing gender mechanisms across sectors and across all levels of governance. The Ministry also provides financial support to Government training institutions for capacity building of Government officials to enhance Gender Budgeting at the State/UT level. Additionally, 21 States/UTs have established designated State Nodal Centres for sustained capacity building efforts on Gender Budgeting.