In an interview to CNBC-TV18, oil minister Dharmendra Pradhan said the government has considered all aspects before linking diesel prices to market.
In an interview to CNBC-TV18, Pradhan said the government is committed to protect the interest of common man and putting economy on track. However, he said that there is no uniform model to reduce the subsidy burden for all categories at the same time like kerosene, LPG.
On new gas price , he said the fertilizer, power and expenditure secretaries were party to the decision and issues like purchasing capacity of consumers and investor friendliness were kept in mind before determining the prices.
Pradhan said the government has been trying to cut subsidy burden by linking to Aadhar and bank accounts. According to him, digitalising the fuel delivery mechanism will save some money, up to Rs 10,000 crore (from direct benefit plan by FY16), and expects a full implementation of DBT by next year.
According to oil minister, the department is in talks with finance ministry and clarity on subsidy sharing is expected soon. He said the government will spend funds on E&P and focus on creating international assets. Even a NELP-X related announcement can be expected once all issues are resolved, Pradhan said.
Stating that fertilizer subsidy will continue, Pradhan said power cost will rise by Rs 0.50 due to higher gas price. "It is not my job to look at power subsidy," he added.
Pradhan said the government is looking into augmenting output of ONGC and Coal India adding that they will focus on ONGC divestment in FY15.
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