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Direct subsidy transfer for LPG launched in 18 districts

Last Updated: Saturday, June 1, 2013 - 19:45

New Delhi: The ambitious direct transfer of cash subsidy on cooking gas (LPG) was today kick-started in 18 districts with consumers being paid Rs 435 directly in their bank accounts.

Oil Minister M Veerappa Moily formally launched the scheme at Tumkur, near Bangalore, and said after three months grace period the LPG in the 18 districts will only be avaiable at market price and customers should use the cash subsidy they get in their back account to purchase their requirements.

The scheme was simultaneously flagged-off by Andhra Pradesh Chief Minister Kiran Kumar Reddy in a function in Hyderabad which P Lakshmi, Minister of State for Petroleum and Natural Gas presided over.

"With this, the direct benefit transfer on LPG (DBTL) Scheme has become operational in 18 districts of the country," an official statement said here.

The subsidy on LPG cylinders in the districts would be provided directly to consumers in their Aadhar linked bank accounts. Over 67 lakh LPG Consumers in these districts will benefit from the scheme.

"All Aadhaar linked domestic LPG consumers will get an advance in their bank account as soon as they book the first subsidized cylinder before delivery. As soon as, the first subsidized 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," it said.

All LPG consumers who have not linked their Aadhaar number to LPG consumer number and their bank account will have three-month grace period from date of launch to do so. During this period they will continue to get the LPG cylinders at subsidised rate, as they are getting today, up to the cap of 9 cylinders.

"After the end grace period i.E. With effect from September 1, 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," it said.

The scheme is aimed at ensuring the subsidy reaches intended beneficiary thereby curbing wastage/ leakage in the subsidy delivery system.

The 18 districts where the DBT for LPG is being launched from June 1 include Anantpur, Chittoor, East Godavari, Hyderabad and Ranga Reddy in Andhra Pradesh; Diu in Daman and Diu; North Goa; Bilaspur, Hamirpur and Una in Himachal Pradesh; Tumkur in Karnataka; Pathanamthitta and Wayand in Kerala; Wardha in Maharasthra; Pondicherry; SBS Nagar/Nawanshahar in Punjab and East Nimar (Khandwa) and Harda in Madhya Pradesh.

The scheme would be rolled out in Mandi and Mysore from July 1.


First Published: Saturday, June 1, 2013 - 10:46
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