DBT scheme to check LPG misuse, reduce subsidy burden: Lakshmi

Lakshmi said use of commercial LPG cylinders increased by 16 percent due to reduction in diversion of domestic gas.

Updated: Jun 01, 2013, 15:40 PM IST

Hyderabad: The Centre's subsidy burden, expected to be reduced to Rs 97,000 crore from Rs 1.61 lakh crore with the introduction of KYC scheme for LPG customers, is likely to come down further under the Direct Benefits Transfer (DBT), Minister of State for Petroleum and Natural Gas Panabaka Lakshmi said on Saturday.

Speaking at the launch of DBT for LPG consumers in Andhra Pradesh today, Lakshmi said use of commercial LPG cylinders increased by 16 percent due to reduction in diversion of domestic gas.

"The KYC scheme has helped prevent misuse of domestic LPG which is highly subsidised. The DBT scheme will further check this and also help further reduce the subsidy burden on government," the Union Minister pointed out.

Andhra Pradesh Chief Minister N Kiran Kumar Reddy launched the DBT scheme for five districts-- Hyderabad, Ranga Reddy, East Godavari, Chittoor and Anantapuram, here today.

The total number of LPG consumers in these five pilot districts is 48.82 lakh but only 17.7 percent of them have been linked to Aadhar.

"Aadhar enrolment is only about 57 percent in these five districts and only 83 percent have bank accounts," the Chief Minister said on the occasion.

Of the 8.4 crore population in the state, 7.7 crore individuals have enrolled for Aadhar so far while the process was continuing to cover the remaining population, he added.

He pointed out that AP alone was getting Rs 5,200 crore as LPG subsidy.

"We almost don't know that we are being heavily subsidised on LPG. Even if we save five per cent of consumption, we will be contributing to a huge saving in national wealth," the Chief Minister noted.

Kiran recalled how the introduction of online payment system for post-matric scholarships and fee reimbursement helped save Rs 300 crore for the state exchequer by eliminating the bogus and hoped the DBT for LPG too would weed out at least 20-25 percent of benamis.

"This will ensure that the subsidy reaches only the real and eligible beneficiaries," he said.

Union Minister of State for Highways Sarve Satyanarayana, MPs V Hanumantha Rao, Anjan Kumar Yadav, state ministers D Sridhar Babu, D Nagender and others attended.