Monday, March 21, 2011

ALL ABOUT MARKER A NEWS ITEM FROM INDIANPETRO.COM
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ravi srivastava

show details 1/1/09
Marker issue come to an end

31st December, 2008 It seems the government has decided not to renew
an agreement with Authentix to ferret out marker-blended kerosene used
for adulterating diesel and petrol. The two-year deal has been given
a quiet burial on December 31, 2008.
So has the market system, introduced for the first time in the
country, been successful? Prior to introduction of the marker
programme, the government estimated approximately a third of kerosene
was illegally diverted. Since the launch of the programme,
international third party certification agency, SGS, which was
mandated with the task of inspecting more than 175,000 retail outlets
across India, positively identified more than 950 sites with
adulterated fuel which subsequently either have been either shut down
or remained under investigation.
There are many who were critical of the marker based
anti-adulteration programme. They claimed that the hit rate was very
low compared to the scale of adulteration across the country.
But apologists for programme were of the view that the threat of
detection brought down the level of adulteration in the country. "The
increased threat of capture has meant that many more retailers have
ceased illicit activities and remain ?on alert? that they can be
caught and punished and subsequently the catch rate has fallen from
40-60 sites per month to 15-20 sites caught per month. The high strike
rates of 2.8% for retail sites and 0.5% for retail audits and
subsequent closures can be attributed to the robust marker technology
that enables detection at very low levels of adulteration together
with the expert testing skills of more than 250 trained SGS auditors,"
sources close to SGS told this website.
Background:

The Marker Programme was launched in October 2006 by the Ministry of
Petroleum and Natural Gas to identify and control diversion of
subsidized kerosene intended for the underprivileged from the PDS
(Public Distribution System) to road fuel.

Prior to the Marker Programme the Government estimated approximately a
third of kerosene was illegally diverted although only a few sites
were caught adulterating. Since the Marker Programme, SGS has
inspected more than 175,000 retail outlets across India and positively
identified more than 950 sites with adulterated fuel which
subsequently either have been either shut down or remain under
investigation. As the Marker Programme became more successful, the
increased threat of capture has meant that many more retailers have
ceased illicit activities and remain ?on alert? that they can be
caught and punished and subsequently the catch rate has fallen from
40-60 sites per month to 15-20 sites caught per month.

The high strike rates of 2.8% for retail sites and 0.5% for retail
audits and subsequent closures can be attributed to the robust marker
technology that enables detection at very low levels of adulteration
together with the expert testing skills of more than 250 trained SGS
auditors.

The Marker Programme has received formal acknowledgement and
significant praise for successfully identifying malpractice,
increasing road fuel sales, reducing diversion of kerosene and as a
consequence increasing kerosene to the poor.

?Up to the end of this year, the programme remains on track, retail
sites are getting caught and when proved guilty terminated by the
OMC?s and there is high overall commitment of the Ministry and OMC?s
to punish those involve in this illegal activity? commented SGS
Director Sundip More,


?We are grateful to have been part of the success of the marker
Programme and particularly the achievement of increasing PDS kerosene
to the poor. In readiness for the new tender, Authentix will continue
to upgrade and enhance the components in our multi-layered suit of
marker technologies to ensure we deliver improved performance for the
new Programme?. said Lal Pearce, Authentix, Executive Vice President.

Free rein to adulterators soon
NEW DELHI, Dec. 29: The innovative "marker" system, which had been
implemented two years back by the UPA government to check the Rs 5,000
crore worth diversion of public distribution scheme kerosene for auto
fuel adulteration, is being given a quiet burial on 31 December.
An indication in this regard was given when a ministry spokesman said
that ?no official decision has been taken on its continuation?. Ms
Cari J Weinberg, spokesperson for Authentix, the current British
supplier of the marker, confirmed this. ?Our contract will expire on
31 December, 2008. It has not been renewed so far,? she said.
The scheme, launched in October 2006, provided for introduction of a
permanent marker in kerosene on an all India basis. If the
marker-blended kerosene is used for adulterating auto fuels ~ diesel
or petrol ~ it can easily be detected through a visual test procedure
using a special testing kit. With the marker?s presence, adulteration
even with very low levels of kerosene can be detected.
The system was introduced after the murder of a Lucknow-based Indian
Oil Corporation official, Shanmugham Manjunath in November 2005 after
he conducted a surprise raid at a petrol pump selling adulterated
fuel, an episode that shook the nation and highlighted the menace of
the oil mafia.
The government?s decision has come as a surprise to many including
those working in the NGO sector, who have been waging a battle against
the oil mafia. In fact, the petroleum ministry had assured the Mumbai
High Court only in September that it would complete the tendering
process for continuation of marker system on permanent basis by 31
December.
According to Shama Khan, president of Sahara Kalyan Samiti, an NGO
working in the resettlement colonies, the government?s decision, even
if temporary, will open the flood gates for diversion of PDS kerosene.
?We have observed definite improvement in the availability of PDS
kerosene after the introduction of the marker system?, she said.
According to ministry sources, some sections of unscrupulous petroleum
dealers and transporters, were lobbying hard to get the order amended
permanently or at least make a fast buck while the process for a fresh
tender is on.
A study in 2005 sponsored by the petroleum ministry had found that
38.6% of PDS kerosene meant for the poor was being diverted, among
other things, to adulteration of transport fuels.
HC notice to govt on marker system abolition

Statesman News Service
NEW DELHI, Dec. 30: A vacation bench of the Delhi High Court has
issued notice to the petroleum ministry and oil marketing companies
(OMCs) on the move to abolish the kerosene "marker system" by 31
December. They have been asked to reply by 7 January 2009.
The court notice came after a public interest litigation (PIL) by an
NGO challenging the government's decision to go ahead with this move
which the petitioner said would hurt the interest of the common man.
The petition was filed following reports that the government "planned
to give the scheme a quiet burial" and the petitioner said the
decision of the government was "a surprise to many including those
working in the NGO sector, who have been waging a battle against the
oil mafia". The scheme was launched in October 2006 and provided for
the introduction of a permanent marker in kerosene on an all-India
basis which was to be carried out by OMCs at their terminals and
depots.
The petroleum ministry had assured the Mumbai High Court in September
that it would complete the tendering process for continuation of the
marker system on permanent basis by 31 December this year.
The petitioner said that if the marker system is removed, it would led
to adulteration of auto fuels which would not only damage automobiles
but also have adverse environmental impact.
The 'marker' system was introduced by the government after the brutal
killing of Shanmugham Manjunath, a Lucknow-based Indian Oil
Corporation official, after he conducted a surprise raid at a petrol
pump in Lakhimpuri Kheri selling adulterated fuel in November 2005.
The UPA government had launched this scheme with much fanfare in 2007
to check the Rs 5,000 crore worth diversion of public diversion scheme
(PDS) kerosene for auto fuel adulteration
About SGS
The SGS Group is the global leader and innovator in inspection,
verification, testing and certification services. Founded in 1878, SGS
is recognized as the global benchmark in quality and integrity. With
more than 53`000 employees, SGS operates a network of over 1?000
offices and laboratories around the world.
About Authentix
Authentix is the global leader in authentication and provides brand
protection solutions for the oil and gas, pharmaceutical, consumer,
tobacco, spirits, and agrochemical industries, as well as fiscal tax
recovery and security services for governments worldwide

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