NOC subsidy plan on government table

Nepal Oil Corporation (NOC) has forwarded to the government a draft manual for subsidy to targetted groups and students in cooking gas and kerosene.
"NOC -- with the aim of granting relief in petroleum products to lower strata of society and students -- has prepared the draft on subsidy and forwarded it to the government," said NOC managing director Digamber Jha.
However, gas dealers are complaining that the draft is ineffective and un-scientific. "The draft lacks a scientific mechanism," Gyaneshwor Aryal, president of Gas Dealers' Federation said adding that there should have been throrough homework before such a relief proposal.
Devi Neupane, president of the authentic employees' union of NOC said the subsidy should be provided only to students of public schools and government schools. "The government need not provide subsidy to students of private boarding schools as they are well-off," he added.
According to the draft, targetted groups to get subsidy are people staying on rent, students, and their families. "All residents in rural and urban areas, colleges, universities and those who live in rented houses along with certificates and necessary documents and students with identity cards are liable to get subsidy in gas and kerosene," said the draft. A single family will get Rs 100 subsidy per cylinder per month while those using kerosene will get Rs 50 per month subsidy. However, according to the draft, people getting subsidy in kerosene will not get it in LPG and vice-versa.
NOC will be the authorised body to issue consumer cards and the respective Metropolitan City, Sub metro, Municipality and Village Development Committee will distribute their respective certified consumers the cards. Meanwhile, after certification from the landlord people living on rent will be able to get subsidy while students of colleges and universities will be eligible with official recognition from their respective institutions. However, students with their own houses will not eligible for subsidy.
"The draft can only regulate the business but cannot control illegal activities," Aryal said adding that a committee should be formed with the participation of consumers, students, dealers and buyers to distribute the cards.
According to the draft manual, students with consumer cards will get Rs 100 subsidy on the purchase of one cylinder per month. Gas dealers will have to certify the consumer with detailed information about the gas cylinder in the card, which will work as the medium for distribution of subsidy to college and university students.
Aryal argued that the card system would not be effective as fake student cards cannot be regulated. "Special holograms should be used," he suggested. "Similarly, people getting subsidy should be classified according to their income level both in the rural and urban areas."