SC/ST forum demands slash in rate of interest under CFS

The Ministry of Petroleum and Natural Gas must slash the rate of interest under Corpus Fund Scheme (CFS) for SC/STs as they are economically weak, Federation of Scheduled Castes and Scheduled Tribes Petroleum Dealers president Manjappa demanded.

Addressing reporters after attending the national-level meeting in the city on Sunday, Manjappa said that oil companies collect 11% interest for petroleum products supplied under CSF. "We need the interest rate to be slashed to 4% as the SC/ST community people are economically weaker and it is difficult for them to run a petrol bunk," he said.

Manjappa said that as per CFS, oil companies should collect the amount from bunk owners only after supplying the petroleum products needed for seven days. He said the companies charge 11%interest for this period.

"The oil companies have provided reservation to open petrol bunks on MGRoad in Bengaluru and DDevaraj Urs Road in Mysuru. But, due to non-availability of suitable land and due to high rentals in these locations, no petrol bunks have been established," he said.

Manjappa also alleged that a few oil companies have failed to offer reservation for SC/ST and thus only a few are owning petrol bunks. According to him, out of 56,000 bunks in the country, only 5,638 bunks are owned by SC/STpeople.

Manjapppa said that oil companies have asked the Federation to approach Deputy Commissioners of the respective districts to provide land for bunks but the officers are ready to provide lands only in thinly populated areas or where the movement of vehicles is very less, he said.