In the name of poor

The pleasant climate of July at the hillock and the happiness of entering into cool second year are enough reasons to relax and improve upon my laziness. Few days ago, after sleeping for more than 12 hours in a go, I decided to watch Shoaib Mansoor's brilliant movie titled "Khuda Ke Liye (In the name of God). I had read a lot about the movie when it was released in Pakistan in 2007 and subsequently in India in 2008. I had watch it too in pieces. With tea breaks and phone calls coming nonstop, I finished the movie in 4-5 hours! Just after finishing that movie I read some article about oil subsidy in India and in particular the subsidies on Kerosene. I was still engrossed by the thoughts of the movie and found some relations between the movie storyline and Kerosene subsidy.
For a long time political parties of India have favored the huge subsidy burden of Kerosene in the name of poor. But, I seriously doubt if a poor really wants to pass his whole life in the dim light of a Kerosene fulled diya or lantern and to imagine the same happenings with his/her upcoming generations. It is just the corrupt Indian netas and babus who wants to fill their pocket by diverting the subsidy are shouting that the poor needs subsidized Kerosene. It is as similar as killing human in the name of Khuda. I seriously doubt if any god, allah, or bhagwan would like his followers to kill his own creature! But people with their vested interests in this killings try to justify it in the name of Khuda.

Weird the above comparison may sound, but the similarity betwen both the acts is that both are being done in the wrong names (poor and khuda). Following table gives the figures of under recoveries on the sell of different petroleum products:

Amount of Under-recoveries Suffered by Public Sector Oil Marketing Companies (OMCS) in Selling PDS Kerosene and Domestic LPG, Petrol and Diesel in India (2004-2005 to 2008-2009)
(Rs. in Crore)
Under Recovery*	2004-05	2005-06	2006-07	2007-08	April-Dec., 2008
PDS Kerosene	9480	14384	17883	19102	25100
Domestic LPG	8362	10246	10701	15523	16137
Petrol	150	2723	2027	7332	6383
Diesel	2154	12647	18776	35166	58595
Total	20146	40000	49387	77123	106215

As crude prices had fallen down during the first quarter of 2009, the total under recovery on Kerosene would be in the range of 30000 Crores during FY 2008-2009. This amount is sufficient to establish 6000 MW of Coal or gas based thermal power station. Simple calculation further suggests that if we provide four pieces of 10 W CFL to each of those BPL families for whom the subsidized kerosene was meant, a 6000 MW plant can light up 80-100 million households even under Indian T&D losses. The electricity charges for these lighting would be in the tune of Rs. 6000-8000 Crores considering each unit of electricity at Rs. 4. I understand the practice is not so simple as this calculation. There are a lot more requirements starting from plant building, to transmission grid and electrification to providing CFL tubes. But, I am not talking something impossible. If the poor's symphatizer government can spent around Rs. 90,000 crores in Kerosene subsidies over last five years alone, why did it fail to spend even a small portion of that to provide electricity to these poors.
The motive of these governments run by the corrupt and cunning politicians is clear. They want the poor to continue living under the kerosene light so that they (netas and babus) and number of their upcoming generations can enjoy their evening in the glittering surroundings of five star hotels with the looted money out of subsidy scheme. Who is benefitting from these subsidies? A report by NACEAR had estimated around 40% of the subsidized Kerosene don't reach to the teargetted population. Following table about the leakage in the Kerosene distribution will clear the picture:

Extremely high leakage (More Than 50%)	Very high leakage (40- 50%)	High leakage (20-40%)	Low leakage (Less Than 20%)
Six States	Four States	Nine States	Four States
Bihar, Chandigarh, Delhi, Jharkhand, Orissa and Punjab	Assam, Chhattisgarh, Tamil Nadu and Uttaranchal	Andhra Pradesh, Gujarat, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Meghalaya, Rajasthan and Uttar Pradesh	Goa, Himachal Pradesh, Kerala and West Bengal

So, for whom these subsidized Kerosene meant for? Definitely not for the poor. It is meant to divert the taxpayers money to netas and babus. By the means of these subsidies in the name of poor we are subsidizing OPEC nations! Now, I shift my focus towards last few central governments. Frankly speaking, it is hard to expect a clean government in India. But, there is a possibility of looking for best among the worst. A closer look at following graph makes things more clear and tell the truth about the government of aam aadami headed by a really clean and honest person!