Have you been receiving SMS’s saying:

Dear XXXgas Consumer, to avail LPG Subsidy in your bank account, kindly submit your Aadhaar to your Distributor and to your Bank immediately

These SMS’s are being sent by Hindustan Petroleum Corporation Ltd (HPCL),  India Oil Corproation (IOC) and Bharat Petroleum Corporation Ltd (BPCL) to its consumers, in violation of the Supreme Court’s interim order that no one can insist on Aadhaar for any government schemes like ration card, bank account, cash transfer or issue of LPG subsidies.

This has been confirmed today by Oil Minister M Veerappa Moily. The unique identification card will no longer be mandatory for giving subsidies unless Supreme Court gives a clearance.

What ‘cash transfer’ essentially means is that instead of paying less at the point of purchase, the higher price must be paid, and the difference will be paid into your bank account.

The neoliberal theology against subsidies is that “Subsidies Create Market Distortions”. The unquestioned assumption we are supposed to accept here is that the market is  a natural phenomenon, like rain or snowfall, and that any state intervention will distort its finely tuned natural functioning. (And we all know how strongly capitalism and economics stands for preserving “other” natural entities like forests and rivers and mineral resources!) Continue reading Cooking gas subsidy and the myth of market distortion →