35 more dists to be covered under direct subsidy transfer for LPG from Sept 1

Richa Mishra New Delhi | Updated on August 12, 2013 Published on August 12, 2013

The Minister of Petroleum & Natural Gas M Veerappa Moily has given go ahead to roll out Direct Benefit Transfer for LPG (DBTL) scheme in 35 more high Aadhaar coverage districts from September 1 in the States where the scheme is already existing. With this total number of districts to be covered by DBTL Scheme comes to 55.

This will add about 1.4 crore LPG consumers in these 35 districts taking total number of LPG consumers to 2.12 crore to fall in the ambit of DBTL for receiving LPG subsidy directly in their bank accounts.

Further, roll out will be announced after considered view is arrived at, an official communique issued by the Ministry said.

The districts, which will be covered on September 1 are: 12 in Kerala, 7 districts in Andhra Pradesh, 7 in Himachal Pradesh, 5 in Punjab, 2 Madhya Pradesh and one each in Maharashtra & Goa.

Launched on June 1 in 18 districts and on July 1 in Mysore (Karnataka) district, August 1 in Mandi district (Himachal Pradesh) to cover 20 high Aadhaar coverage districts in 8 States and 2 UTs the scheme has been a success, the Ministry said.

About 4 million direct cash transfers have been effected to consumers’ bank accounts by August 9. These transactions amounted to Rs 150.6 crore transferred in the hands of LPG consumers in these districts.

The scheme was launched with an aim to curb leakages and prevent black-marketing and provide subsidy to consumers in their bank accounts. In these districts the subsidy on LPG cylinders is being provided directly to consumers in their Aadhaar linked bank accounts.

All Aadhaar linked domestic LPG consumers get an advance of Rs 435 in their bank account as soon as they book the first subsidised cylinder before delivery. As soon as, the first subsidised cylinder is delivered to such consumers, the next subsidy will again get credited in their bank account, which can then be available for the purchase of the next subsidized cylinder at market rate.

After the launch of the Scheme in June, all LPG consumers in 18 districts who have not linked their Aadhaar number to LPG consumer number and their bank account have been given a grace period to do so till August 31. During this period they are continuing to get the LPG cylinders at subsidised rate, up to the cap of 9 cylinders. In Mysore the grace period ends on September 30 and in Mandi it ends on October 31.

After the end of grace period, LPG cylinders will be sold to all domestic LPG consumers at market price. However, the subsidy will be transferred to only those who have linked Aadhaar number to LPG consumer number and bank account and others will not get any subsidy.

Published on August 12, 2013
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