There
is a rot within – and it’s eating into the vitals of the system. The
canker at the root stems from the corruption that is endemic in Indian
society. And sometimes, just sometimes, one is tempted to ask which came
first: the corrupt, or the system that perpetuates corruption in one
long, iterative cycle.
One simple story will illustrate just how well-entrenched corruption
really is and just how helpless people are in the stranglehold of the
sinuous, coils of corruption. It was exactly 25 years ago that Samachar
Apartments, a cooperative housing society of Delhi journalists, came
into existence. Mayur Vihar, Phase- I was a backward region within a
thriving, but still small, metropolis. And that was one of the reasons
why there was no Mother Dairy milk booth nearby. Purely as a temporary
arrangement, the milk cooperative Mother Dairy sanctioned a booth at
Samachar complex that was run by a peon at a newspaper office with the
support of his family of four.
His family’s total daily income from the milk business, based on the
legally allowed commission, was a princely Rs 26. Mother Dairy had an
inspection agency of its own that visited every outlet frequently to see
how ethically the business was run. Its members had to be kept in good
humour, failing which an adverse report would be filed against the
booth.
Our
friend who managed the dairy booth at Samachar Apartments refused pay a
bribe to the inspectors as he did not dilute the milk in order to make
money. Though a low-level employee in terms of position and income, he
was a man of principle and considered adulterating milk a crime. The
inspection agency then advised him to mix milk with water so that the
enhanced income could be shared. He refused to do so and the milk
booth’s tenure was not extended.
This episode immediately comes to mind at a time when petroleum experts
have started debating the future scenario of the petroleum retail
outlets in the country. There are over 51,000 retail outlets in the
country, the bulk of which belong to the three Oil Marketing Companies:
IOC, BPCL and HPCL. Private players such as RIL and Essar account for
less than 5 per cent. Shell too has a negligible presence. Most of these
have been closed as it had become uneconomic to operate them when they
were denied the subsidy that the government extended to the state-run
oil marketing companies.
The
Modi government has ambitious plans to sanction more retail outlets so
that petroleum products can reach every nook and corner of the country.
But the basic issue is not the number of retail outlets, but rather the
quality and quantity of products coming out of them. Are the citizens of
this country entitled to unadulterated petrol and diesel without being
short-changed on the quantity they pay for.
This correspondent is one of a lucky few who has been able to get
quality petrol without being short-weighted. A friend working for Bharat
Petroleum advised me to buy petrol or diesel only from the company-run
outlet that is close to my house (not Samachar). Two kilometres away,
there is another company-run outlet belonging to HPCL. These outlets are
not crowded because this secret is not known to many vehicle owners.
Compared to the previous outlets from where I sourced petrol for months,
I save two litres for every 20 litres and am assured of unadulterated
fuel.
Blame it all on the politicians who not only adulterate the political
discourse but also the fuel supply network in this country. A large
number of retail outlets are owned by politicians and, invariably, the
uncouth
variety. All OMCs have an inspection wing and carry out mandatory
checks. Oil companies do not dare take action against the politically
powerful retailers. What happened to IOC’s Manjunath is still fresh in
memory.
There are genuine businessmen as well who find the survival difficult
because of the poor commission they earn on the sale of fuels. For
years, political parties in power have been mopping up election funds
through the allotment of retail petrol outlets. The kickback did rise to
as high as Rs 10 million per outlet. How will they recover the
investment? The paltry commission won’t pay for the kickback. So, they
must adulterate the fuel and resort to meter manipulations to make a
quick buck.
Things can improve if the private sector retailers are allowed to
compete on even terms. That seemed imminent when RIL and Essar opened
1400 outlets each a few years ago. But alsas, it wasn’t to be. The
private players are now trying to reactivate at least half of their
outlets. Even if all their outlets become active, they won’t have much
of an impact without solid backing from the political leadership.
The
PSU Oil Marketing Companies have a capable leadership. Prime Minister
Narendra Modi has to take a deliberate decision and empower the
managements of OMCs to ensure the quality of fuel. This is a tough task.
Only a management that is respected and backed by the administrative
ministry can be expected to deliver. The situation may call for Prime
Minister’s intervention.
The first major measure the government should adopt is to end the racket
surrounding the supply of subsidised kerosene, most of which finds its
way to diesel pumps for adulteration. It must also stop the pernicious
practice of paying kickbacks for petrol pump allotments – a situation
that blighted allotments during the earlier NDA and UPA regimes.
The Modi government should evolve professional criteria for picking the
beneficiaries with the help of reputed agencies while allotting new
outlets. Simultaneously, the government should create a professional
inspection agency, independent of OMCs, which can squarely deal with the
problem of fuel adulteration across the country.
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