Subsidy likely to be reinstated

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A meeting of senior Indian Officials chaired by Foreign secretary, Ranjan Mathai, held friday is to determine the lowering of LPG and kerosene prices in Bhutan that shoot up to triple the existing price just before general election. The meeting was attended by officials of Oil Ministry  and Ministry of External Affairs.

 According to PTI, the foreign ministry has initiated the process of assessing the financial and logistic components of reinstating the subsidy on cooking gas and kerosene.

 The meeting was aimed at restoring the subsidy soon enough even on a short term basis. However, the Union cabinet has to pass the detail reinstatement plan before the subsidy can be fully implemented, sources said.

 The subsidy amounting to Rs 150 crore per annum is borne by the Indian Oil as part of its under-recovery reported to the petroleum ministry.

 Meanwhile, Bhutan has officially requested the foreign minister Salman Khurshid not to keep the subsidy cut for longer time. Tshering Tobgay, the Prime Minister-elect is also reported to have requested the Indian side to allow subsidy to Bhutan on the backdrop of forming his new government by the end of this month.

 According to zee news, Ministry of External Affairs said that Bhutan’s 10th plan ended on June 30, for which the financial aids and subsidies allowed to Bhutan government has to undergo fresh negotiation.

Worth mention, the subsidy cut has come a week before the election date, most observers pointing it  as unhappy move by India,  for JYT’s meeting with Chinese premier during the Rio summit.