Bhubaneswar, Nov. 15: A pilot project is likely to be launched in Balangir, one of the poorest districts in Odisha, to curb blackmarketing of kerosene. Odisha consumes 33,372 kilo litres (KL) of kerosene per month while Balangir alone uses 1,464 KL.

Official sources said the project envisages purchase of kerosene from the public distribution system (PDS) dealers through barcoded coupons at a higher retail price than the existing price that varies between Rs 13 and Rs 13.80 depending upon the distance between the retail point and the kerosene supply depot. The extra amount paid by the consumers will later be reimbursed by the government with the money being deposited in their bank accounts.

“Odisha is one of the five states of the country where this project is proposed to be launched. The details may take a few more months to be worked out,” said Madhusudan Padhi, secretary, department of food supplies and consumer welfare. Balangir has been picked out not only because of its poverty profile but also the fact that the exercise of preparing the National Population Register database has been completed in the district.

Officials said that once the pilot project is launched, PDS consumers entitled to a monthly quota of four litres of kerosene would be issued barcoded coupons for making purchases from common service centres at the panchayat level. “They can produce these coupons at the retail outlet for acquiring their quota. Each litre of kerosene will cost them Rs 40 though so far they had been getting it for prices ranging between Rs 13 and Rs 13.80. Retailers will retain a portion of the coupon and deposit it later at the common service centre where their sales figures will be updated,” said an official.

The extra amount paid by the consumer would later be refunded with the money being deposited in his bank account. “We are going to organise an awareness campaign before launching the scheme so that everyone has a bank account,” said Padhi.

The blackmarketing of PDS kerosene is rampant in the state as it comes cheap and is used for mixing with diesel, which costs between Rs 40 to Rs 42 per litre. Sources said the bulk of PDS kerosene used to find its way to the blackmarket from the retail shops. “The introduction of barcoded coupons with each litre costing Rs 40 will serve as a disincentive for these unscrupulous elements as the cost of kerosene and diesel will be almost the same,” said an official.