Govt eyes diesel price rise, fuel consumption curbs

September 7, 2013

Diesel_price_copyNew Delhi, Sep 7: Government may announce more measures to curb fuel consumption later this month and raise diesel prices by close to 10 percent soon in a bid to cut the biggest item in its import bill and support the rupee, officials said.

The world's fourth-biggest energy user is considering a 3-5 rupee increase in the price of diesel, which accounts for over 40 percent of fuel use, as it looks to cut oil costs by nearly $20 billion.

Rising global prices of crude oil and a slide in the rupee have left India facing an oil bill potentially 50 percent higher than on May 1.

"The timing and the quantum of the hike is a political decision," said a government official who declined to be named. "But it should happen. Political discussions are going on." The official said it would come sometime after the current parliament session ends on Saturday.

Foreign Minister Salman Khurshid said on Friday his oil ministry counterpart, M. Veerappa Moily, could announce steps to curb fuel consumption on September 16, when he gets back from a trip to South Korea and Japan.

"No matter what happens, we will have to cut down on fuel consumption," Khurshid told business channel CNBC TV18. "You can't keep subsiding the costs of fuel and not restrict the use of fuel." Khurshid provided no details on the possible steps.

Moily suggested ways to cut fuel import costs in letters to the prime minister and finance ministry a week ago, ranging from a street theatre campaign to encourage careful use of fuel to stepping up imports from Iran, which India pays for in rupees. The official said talks were also on with Iraq, India's biggest crude supplier, to pay in rupees for its oil.

Khurshid said Indians were increasingly realising the inevitability of moving away from government-controlled prices. "That's beginning to happen but has political implications," he said.

Fuel price rises generally provoke stiff resistance from opposition parties, and any increase now is expected to draw a bigger protest as India approaches a general election. The election must be held by May 2014.

SAVING BILLIONS ON SUBSIDIES?

India, where energy consumption per person is among the lowest in the world, has little elasticity in its fuel use as it tries to power exports and agriculture to help boost its economy and stave off a currency crisis.

The official said the government also hopes to be able to raise prices of cooking gas and kerosene, calculating the rupee's fall has added 350-400 billion rupees to its subsidy bill, which is budgeted at 650 billion for 2013/14.

These two fuels are used largely by India's poor and aspiring middle classes, making increases a hot political issue.

Diesel accounts for more than 40 percent of fuel demand, or about 1.4 million barrels per day (bpd), and the bulk of that is used by trucks, farmers and industry, which needs back-up generators to cope with frequent power blackouts.

Diesel demand has edged down 1.1 percent between April and July, Oil Secretary Vivek Rae told Reuters, largely due to reduced consumption by trucks as heavy monsoon rains in June and July hit road transport. The rains also reduced the need for farmers to run irrigation pumps.

Support from the government means diesel is now around 52 rupees a litre, some 10 rupees below market levels.

An increase of 5 rupees per litre on diesel could save as much as $4.3 billion in costs, Reuters calculations show. Total subsidies on fuel amount to about $25 billion a year, and India's crude oil import bill was $144 billion last fiscal year.

A previous price rise of 5 rupees a litre in September last year had little impact on consumption, and monthly increments of about 1 cent per litre from January 2013 have actually been wiped out by the falling rupee and higher global oil prices.

Bulk purchases were put on a market footing at the start of this year, but there has been little impact on consumption.

Overall use of fuel products rose 1.1 percent between April and July, Rae said, with petrol consumption up 11.4 percent. Motorcycles and scooters, which run only on petrol, are the backbone of private transport in India, where middle-class incomes are still too small for most families to afford cars.

The government has also asked the Petroleum Conservation Research Association, which works for the oil ministry, to report on the potential for curbs to oil consumption, the government official said.

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News Network
June 18,2020

New Delhi, Jun 18: The border clash between Indian and Chinese soldiers in Ladakh broke the brittle quiet – and also the sense of security for anxious Chinese nationals in India who fear a backlash with anti-Chinese sentiment spiralling in the country.

With the high altitude violent face-off in eastern Ladakh’s Galwan Valley spurring hashtags such as “Boycott China” and “Teach Lesson to China” and leading to street protests, the undercurrents of tension were evident.

Wary of being identified, some said they had been reassured by their friends but were still apprehensive for themselves and their families.

"They (Chinese families) don''t want to speak to the media. They are not going out and are worried about their security and well being. Their families are also worried back home," Mohammed Saqib, secretary general of the India China Economic & Cultural Council, told PTI.

He added that his Chinese friends in India been calling him since they heard news about Monday night’s clashes in which 20 Indian soldiers were killed -- the worst military confrontation in five decades -- and expressed concern over growing anti-China sentiments.

A Chinese national from Beijing working in Gurgaon for a Chinese mobile firm initially refused to talk, saying he did not want to speak to the media and later shared his thoughts only on condition of anonymity.

"There is talk of border standoff and tensions, but we know Indians are very warm people and that is why I have told my family that all is fine here and they should not worry," he said.

Another Chinese national working in Gurgaon said he and his family are feeling the stress amid the spiralling conflict between India and China, but many friends have been reassuring him.

"They (Chinese in India) are under a lot of stress naturally. Such a conflict puts a lot of stress as they could bear the brunt and the same applies to Indians in China," B R Deepak, professor at the Centre for Chinese and South East Asian Studies of the Jawaharlal Nehru University said.

He said it was unfortunate that the border standoff derailed the commemorative programmes aimed at strengthening ties at a time the two countries were gearing to celebrate 70 years of establishment of diplomatic ties.

Experts also feel the border clash is likely to have a significant negative impact on the economic and people to people ties.

There are scores of Chinese in India working in various Chinese firms and also those who are studying in universities like JNU.

About 3,000 Chinese people, doing business or studying in big cities in India, were stranded in India at the start of the COVID-19 crisis, and about half of them returned to China before the lockdown began on March 25.

The Chinese Embassy in New Delhi announced on May 25 that they will arrange for flights to take back students, tourists and businesspersons to five Chinese cities, including Shanghai and Guangzhou.

"It will impact the psychology of the Chinese here. There are 2,000 Chinese firms in various sectors in India which are going to be impacted," Deepak said.

Future investments from the Chinese side could also be impacted, he said.

Moreover, as far as people-to-people contacts are concerned, the number of Chinese students choosing India as a preferred destination is likely to go down, Deepak said.

Alka Acharya, another China expert, said there are two kinds of impacts of such an incident -- short term and medium term.

Usually after the initial nationalistic reaction in the short term things tend to normalise in the medium term, but with such a border clash happening for the first time in decades clearly the resonance would be much more in both India and China, said Acharya, professor at the Centre for East Asian Studies, School of International Studies, in JNU.

“Due to the impact of the COVID-19 crisis on the economy, whether India can take a hardline in terms of economics towards China, is a tricky question,” she said.

In the immediate context, there may be a dip in economic ties with calls for boycott of Chinese goods and services, Acharya said.

The manner in which this crisis is resolved will affect how ties will be affected in the medium term, she said.

The headlines have added to the anxiety.

A group of ex-armymen gathered near the Chinese embassy to protest the killing of 20 Indian Army personnel in Ladakh’s Galwan Valley. And another group of around 10 protesters belonging to the Swadeshi Jagaran Manch protested near the Teen Murti roundabout in Central Delhi.

The anti-China sentiment prevalent among the common public is also finding a reflection in government policy with sources saying the Department of Telecom (DoT) is set to ask state-owned Bharat Sanchar Nigam Ltd (BSNL) not to use Chinese telecom gear in its 4G upgradation.

Trade bodies like CAIT are also calling for a boycott of Chinese products.

And Chinese handset maker Oppo cancelled the livestream launch of its flagship 5G smartphone in the country amid protests.

Monday night’s clashes between the Chinese and Indian troops in Galwan Valley significantly escalated the already volatile border standoff between the two countries.

The casualties on the Chinese side are not yet known. However, government sources, citing an American intelligence report, claimed the total number of soldiers killed and seriously wounded could be 35.

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Agencies
August 3,2020

Rajouri, Aug 3: Ashfaq Mehmood Choudhary, a 17-year-old boy from Chattyear of Jammu and Kashmir's Rajouri district, has developed a file-sharing app 'Dodo Drop' which would enable users to share audios, videos, images, and texts between two devices without Internet access.

While speaking to media persons, Ashfaq Mehmood said that the 'Dodo Drop' application is an alternative to the Chinese 'SHAREit' app. "The Indian government has banned several Chinese apps due to data breaching, and among those apps was SHAREit which was used for sharing files.

Users faced a lot of problems due to the ban, and so I decided to make this file-sharing app. With 'Dodo Drop', users can share audios, videos, images, and even texts," he said.

Ashfaq said that it took him four weeks to develop the application, and it was launched on August 1 this year. The 'Dodo Drop' application has a transfer rate of up to 480 mbps, which is faster than the SHAREit app and is "quite easy" to use.

"Users can transfer data comprising photos, videos, audios, apps, texts, etc. between two devices with no Internet access. The transfers are fully encrypted and secure," he added.

"Our Prime Minister has always asserted the need for decreasing the dependency on foreign products and apps and to focus on the development of India-based apps. I tried to be part of the initiative of 'Aatmanirbhar Bharat' by developing an India-based file-sharing app. I want to develop global-standard apps for India," he added.

"We support and cooperate with him. He generates his own income by working on some projects and utilises it. We will continue to support him," said Parvez Ahmed Choudhary, Ashfaq's father.

In July, the Ministry of Electronics and Information Technology (MEITY) banned 47 apps, which were variants and cloned copies of the 59 apps banned earlier in June. These banned clones included SHAREit Lite, Tiktok Lite, Helo Lite, BIGO LIVE Lite, and VFY Lite.

The 59 apps had been banned by the Centre in June in view of the information available that they were engaged in activities which were "prejudicial to sovereignty and integrity and defence" of the country.

Almost all the apps banned had some preferential Chinese interest and the majority had parent Chinese companies.

The ban came amid border tensions with China in the Eastern Ladakh region.

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News Network
March 2,2020

New Delhi, Mar 2: Senior Congress leader P Chidambaram on Sunday hit out at Union Home Minister Amit Shah for his comments that no one from the minority community will be affected by amended Citizenship Act and asked why then was the community excluded from the law in the first place.

Addressing a rally in Kolkata, Shah assured people of the minority community that not a single person will lose citizenship due to the Citizenship (Amendment) Act (CAA).

"The Home Minister says that no minority will be affected by CAA. If this is correct, they should tell the country who would be affected by CAA. If no one would be affected by CAA, as it currently is, why did the government pass the law?

"If the CAA aims to benefit all minorities (no one will be affected, says HM), then why are Muslims excluded from the list of minorities mentioned in the Act?," the former finance minister asked in a post on Twitter.

At his first public rally in Kolkata after the 2019 general elections, Shah said, "The opposition is terrorising the minorities. I assure every person from the minority community that the CAA only provides citizenship, does not take it away. It won't affect your citizenship."

"The opposition parties are spreading canards that refugees will have to show papers but this is absolutely false. You don't have to show any paper. We will not stop until all refugees are granted citizenship," Shah told the public.

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