Why in news?
Government is planning to reduce the kerosene subsidies.
What is the status of fossil fuels Subsides in India?
- In India, fossil fuels receive eleven times the financial support that clean energy sources do.
- India is making a lot of progress in cutting subsidies.
- Diesel subsidies, have fallen from 37 crore in FY14 to FY17.
- LPG subsidies have fallen from 50,327 crore in FY14 to Rs 15,132 crore in FY17.
- Kerosene from 30,574 crore to Rs 7,606 crore in the same period.
What are the pros of reduced kerosene subsidies?
- Financial burden is reduced largely for the nation.
- Government thinks that rational pricing will ensure optimal usage.
- This triggers the India’s plan to increase the use of renewable energy.
- E.g. Distributing 25.3 crore LED bulbs has reduced energy consumption by 32,896 million KWh.
- Some studies shows that subsidising fossil fuels will extracts a health cost many times larger than the subsidies costs, such costs also can be reduced.
What are the facts need to be considered?
- There is a view that, plan for reducing the kerosene subsidy would seriously affects the poor.
- Few report shows that use of fire food, kerosene and other low grade fossil fuels are contributing to diseases like respiratory disorders, heart attacks etc.
- Since health impacts on the society has high priority, such opinions should be addressed with alternate resources.
Source: Financial Express
