Determined to
end the policy paralysis engineered by the opposition political parties the Government
of India ushered in a spate of reforms, first opening up the Indian multi-brand retail market for Foreign Direct Investment (FDI), and then hiking the heavily
subsidized diesel prices and putting a cap on subsidized cooking gas (LPG)
cylinders per household per year. Hiking LPG cylinder prices was considered too
risky.
Every household
in India
thus could get only three more cylinders from September to March this financial
year, because the cap of subsidized cylinders was fixed at 6 per household per
year. The 7th cylinder at market price became the most expensive
proposition thereafter and as the Indian families focused on their kitchens the
opposition parties got another excuse to ‘safeguard’ the interests of the
common man.
The Government
was also determined not to bow down to pressure and refused any rollback. The
growing fiscal deficit had to be reduced for the long term interest of the
country and the Government was also sure that the poor families and most of the
middle class households do not in fact need to go for the 7th
cylinder. With calculations in place the Government did not mind giving in a
concession to the effect that state governments of the India could, if they
prefer, consider increasing the cap of subsidized cylinders to 9 for below
poverty line citizens. Naturally the clamor increased for implementing this
provision to again help the common man.
The Government
of Maharashtra state finally decided in principle to increase the cap to 9
cylinders yesterday in Mumbai, but it came with two interesting conditions.
First, only households with annual income of 100,000 rupees or less can get
this concession. The cut-off point for annual income decided upon not exactly
below poverty neither above poverty. Second, if such a household ends up using
7 cylinders in this financial year (April’12 to March’13) it will get only 7
cylinders next year and will get 9 only if they end up using 9 or more. The
kitchen calculations get more exciting and intricate. With two months given for
implementation the gas agencies run by the oil companies can find themselves in
a web of intricacies too.
But no harm done
to the Government of India’s financial resolve and at the same time opposition
or even coalition partners get effectively silenced as the ‘common man’ stands
to benefit, no matter who finally gets or does not get what benefit.
The 7th
gas cylinder has somewhat become a symbol of the country’s struggle for
economic stability!
