Increase duty on diesel cars up to Rs 2.5 lakh: Jaipal Reddy

June 13, 2012

Jaipal-Reddy

New Delhi, June 13: If the government accepts oil minister S Jaipal Reddy's proposal, the price of small diesel cars could soon rise by Rs 1.7 lakh while medium-to-large guzzlers could become costlier by Rs 2.55 lakh a piece.

The proposal to impose additional excise duty on diesel cars is bound to trigger protests from automakers, who have seen sales growing at the slowest pace in seven months in May. Domestic car sales declined 24% in May compared to the year-ago period due to high fuel prices and interest rates.

The proposal drew a thumbs down from analysts and private players, who described it as an excuse to avoid fuel pricing reforms. "From the RBI to C Rangarajan, head of the PM's Economic Advisory Council, everyone has recommended deregulation of fuel prices. If you can't do that for political reasons, at least fix subsidy on diesel and then let the market determine the pump price. Taxing vehicles would serve hardly any purpose," said an industry analyst requesting anonymity.

But Reddy has his arguments for seeking taxing diesel vehicles that are outpacing petrol car sales. In a June 7 letter to finance minister Pranab Mukherjee, the oil minister gave three key reasons for his proposal aimed at arresting a ballooning fuel subsidy bill.

Reddy pointed out that the proposed additional excise duties are equivalent to the minimum benefit that a diesel car owner derives from the fuel's price differential with petrol — at current prices — over a 10-year assumed life of a vehicle. Petrol in Delhi costs Rs 71.16 a litre against Rs 40.91 for diesel.

Reddy's arithmetic goes like this: he first calculates the total distance a vehicle is expected to clock in its 10-year life span, assuming an annual run of 18,000km. Then, he works out the fuel costs by taking a median mileage of 18km to a litre for small cars and 12km for medium/large vehicles. For good measure, he shaves off 10% of the total cost to level.

According to Reddy's calculation, the additional excise duty amounts to asking the diesel car buyer to pay upfront the price differential with petrol that he or she would enjoy later. A petrol car owner, in contrast, shells out every time at the pump.

Reddy also pointed out the adverse impact of increased diesel car sales on the government's earnings. Petrol attracts an excise duty of Rs 14.78 per litre against Rs 2.06 a litre for diesel. So each time a buyer opts for a diesel car instead of petrol and visits a petrol pump, the government loses Rs 12.72 in excise duty on litre of diesel. Together with the Rs 12.53 a litre subsidy on diesel, the actual price differential with petrol at Delhi works out to Rs 25.75 a litre.

To drive home the enormity of the situation arising out of this increasing dieselization, Reddy says diesel consumption rose by 7.6% in 2011-12 against 6.2% in 2010-11. In contrast, growth in petrol consumption fell from 10.7% in 2010-11 to 5.6% in 2011-12.

The Kirit Parikh Committee on fuel pricing reforms had recommended an additional excise duty of Rs 80,000 in February 2010 when duty difference on petrol and diesel was Rs 9.75 a litre and under-recovery on petrol was more at Rs 3.97 a litre than Rs 2 on diesel.

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News Network
September 16,2024

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New Delhi: With Arvind Kejriwal announcing that he will resign as Delhi Chief Minister soon and return to office only after the people's verdict on the allegations of corruption against him, the big question is who in the Aam Aadmi Party (AAP) will get the top job.

Assembly polls in Delhi are due in February next year, even though Mr Kejriwal yesterday demanded that the election be held in November along with the Maharashtra polls. Former Deputy Chief Minister Manish Sisodia, too, has said he will go to the people and return to the top office only after re-election. This effectively means that the top leaders of AAP are not in the race for the Chief Minister's post.

Even though this Chief Ministerial stint will only be for a few months, the AAP leadership would be looking to choose a prominent leader who can articulate the party's position on key issues and has wide acceptability among the party ranks.

Here are five leaders who can make the cut

Atishi:

Delhi Minister Atishi, holding key portfolios such as education and PWD, is one of the key contenders. An Oxford University alumnus and a Rhodes scholar, Ms Atishi has worked extensively in the AAP's flagship exercise to overhaul education in Delhi's schools. An MLA from Kalkaji, the 43-year-old became a minister after Mr Sisodia was arrested in a corruption case linked to Delhi's now-scrapped liquor policy. When Mr Kejriwal and Mr Sisodia were behind bars, Atishi articulated the party's position. On August 15, Mr Kejriwal chose her to hoist the tricolour at Delhi government's Independence Day event. While Delhi Lieutenant Governor VK Saxena foiled the plan, it was clear that the AAP leadership places a lot of faith in Ms Atishi.

Saurabh Bharadwaj: 

Mr Bharadwaj is a three-time MLA from Greater Kailash and holds portfolios such as vigilance and health in the Arvind Kejriwal government. He, too, was named a minister after Mr Sisodia's arrest in the liquor policy case. Mr Bharadwaj, who has worked as a software engineer in the past, was also a minister in Arvind Kejriwal's 49-day government. He is also a national spokesperson of the AAP and was articulating the party's position when its top leaders were in jail after being arrested by central agencies in corruption cases.

Raghav Chadha: 

A member of the AAP's national executive and political affairs committee, Mr Chadha is a Rajya Sabha MP from the party and one of its top faces. Mr Chadha has earlier worked as a chartered accountant and has been in the AAP since its inception. He has been an MLA from Rajinder Nagar and played a key role in the AAP's thumping victory in Punjab in the 2022 state polls. The 35-year-old is among the most prominent young politicians in the country and is known for articulating AAP's position on key issues in Parliament.
Kailash Gahlot: 

Kailash Gahlot:

A lawyer by profession, Mr Gahlot is among the senior members of the AAP government in Delhi and holds key portfolios such as transport, finance and home affairs. The 50-year-old leader is MLA from Delhi's Najafgarh constituency since 2015. An advocate who has practised in both Delhi High Court and Supreme Court, he has served as a member executive in the high court bar association between 2005 and 2007

Sanjay Singh: 

A Rajya Sabha MP since 2018, Sanjay Singh is one of the AAP's most prominent faces known for his spirited speeches in Parliament. The 52-year-old leader is among the founder members of the party and is a member of its national executive and political affairs committee. He is also a regular in the party's media interactions to articulate its position on key issues. Sanjay Singh was also arrested in connection to a corruption case linked to the Delhi liquor policy case and is currently out on bail, like Mr Kejriwal and Mr Sisodia.

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News Network
September 17,2024

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As the Modi-led NDA government completes the first 100 days of its third term, the Congress party has launched a scathing attack, dubbing it as the "U-Turn Sarkar" for its failures and policy reversals.

At a press conference in Delhi, Congress spokesperson Supriya Shrinate highlighted what she called "100 days of instability, indecisiveness, and immaturity," accusing the Modi government of damaging critical sectors of the economy and public infrastructure.

Shrinate criticised the government's handling of the economy, which she described as being in "dire straits".

She argued that under Modi's leadership, sectors such as agriculture, youth employment, and infrastructure have been neglected. "These 100 days have been very heavy on the country's economy, farmers, youth, women, infrastructure, railways, and institutions," she said, adding "It has become clear that Narendra Modi has no vision to deal with the country's problems."

She went on to debunk the government's claims of progress in infrastructure development, citing multiple instances of structural failures in key projects.

“The airports inaugurated by Narendra Modi--from Jabalpur to Delhi and Rajkot--could not even withstand a single monsoon,” Shrinate pointed out. She also referenced failures such as:

•    Atal setu: Constructed at a cost of Rs18,000 crore, the bridge developed cracks soon after its inauguration.

•    Sudarshan setu in Gujarat: Opened in February 2024, it also developed cracks within months.

•    Shivaji statue collapse: The iconic statue of Chhatrapati Shivaji Maharaj was destroyed within eight months of being unveiled, an event Shrinate described as an "insult to Shivaji Maharaj."

•    Ram mandir water leakage: The sanctum sanctorum of the Ram Mandir, a symbol of faith for millions, was found to be leaking during the monsoon.

•    "Who will take accountability for these incidents?" Shrinate asked, questioning the government's competency in executing large-scale projects.

•    On railway safety, Shrinate accused the government of overseeing a period marked by frequent accidents and derailments.

•    "There have been 38 railway accidents in 100 days, resulting in 21 deaths," she stated. Despite the public outrage following the tragic Balasore accident, which killed nearly 300 people earlier this year, the Congress spokesperson said that the government has failed to take effective measures to improve rail safety.

•    She criticised the slow implementation of Kavach, an anti-collision device, stating, “The reality is that even after 21 deaths, Kavach is being installed at a pace of 2 km per year, while the Railway Minister shamelessly calls these 'minor' incidents.” Shrinate’s remarks come amidst mounting public concern over the Modi government’s inability to secure rail travel in one of the world’s largest railway networks.

In addition to infrastructure and safety concerns, Shrinate accused the Modi government of making hasty policy decisions, only to later backtrack under public pressure. "If any of your decisions affect the country negatively, it won’t become law because the government will take a U-turn on it," she said. Among the key policy reversals Shrinate cited were:

•    Lateral entry: A controversial policy of hiring private-sector professionals for bureaucratic roles, which was quietly shelved.

•    Broadcast Bill: Withdrawn after fierce opposition, highlighting the government's poor handling of policy legislation.

•    Waqf Board Bill: Another example of the government's failure to gauge the impact of its decisions.

•    NPS to UPS: Indexation policy changes that were hastily reversed after protests from key stakeholders.

"Narendra Modi's first 100 days symbolise not just U-turns, but a government that is fundamentally unsure of its direction," Shrinate remarked.

"In 100 days, 104 heinous crimes have been committed against women, in which there are 157 victims. Women are raped publicly in BJP ruled states but Narendra Modi doesn't say a word on this. But how will you speak, because you are the one who stood with those who sexually exploited the daughters of the country," she added.

The Congress's sharp critique of the Modi government's first 100 days has set the tone for the coming months, as the opposition gears up for a series of state elections and prepares for the 2024 general election.

"The country cannot afford this level of instability, immaturity, and incompetence," Shrinate concluded, calling on citizens to hold the Modi government accountable for what she described as its "endless U-turns and policy failures."

In these 100 days, Congress has made clear that it will focus on highlighting the government’s missteps in the economy, public safety, and governance, presenting itself as a viable alternative in the face of what it calls "a government in retreat."

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News Network
September 17,2024

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New Delhi, Sept 17: Atishi will be the new Chief Minister of Delhi. The decision came after a legislative party meeting was chaired by Arvind Kejriwal at his Delhi residence earlier today.

Kejriwal is expected to tender his resignation later today, and will also meet Lieutenant Governor VK Saxena at 4.30 pm.

On September 13, Arvind Kejriwal was released from Tihar Jail, where he had been lodged for his alleged involvement in the Delhi liquor policy case. Nearly two days after his release, on Sunday, Kejriwal said he would resign as the Chief Minister within 48 hours.

He also sought early polls in Delhi, and vowed not to sit in the chief minister’s chair until people gave him a “certificate of honesty”.

On Monday, the AAP held a series of meetings as Kejriwal sought feedback from members of the political affairs committee, the party’s highest decision-making body, on his successor in one-on-one meetings at his official residence.

Names of Delhi ministers Atishi, Gopal Rai, Kailash Gahlot and Saurabh Bharadwaj were making the rounds as contenders, news agency PTI had quoted party insiders as saying and added that Kejriwal’s wife Sunita Kejriwal and Assembly Speaker Ram Niwas Goel were also the probables.

Mangolpuri MLA Rakhi Birla, who is also the deputy speaker in the assembly, and Kondli legislator Kuldeep Kumar were also potential candidates, they added.

Earlier, sources with the AAP had told PTI that the surprise candidate could also be a member of the minority community as the party has witnessed its support among the community wavering since the 2020 Delhi riots.

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