M A I N   N E W S

LPG cash transfer scheme kicks off from June 1
Sanjeev Sharma/TNS

New Delhi, May 15
It will be a new way of buying cooking gas as the government scheme for giving cash subsidy directly to the consumers kicks off from June 1 in 20 districts. These include Nawanshahr in Punjab and Bilaspur, Hamirpur, Mandi and Una in Himachal Pradesh.

Petroleum Minister Veerappa Moily today announced that the Direct Benefit Transfer DBT for LPG (DBTL) scheme will be launched in 20 high Aadhaar coverage districts from June 1. The scheme aims to curb leakages and prevent black-marketing and provide subsidy to consumers in their bank accounts. The scheme will be rolled out all over the country in phases. Under this rollout, consumers will need to have an Aadhaar number linked to their bank account which is then to be given to the LPG distributor. The cash subsidy on each cylinder will be given directly to the consumer instead of the distributor while the consumer will get the cooking gas at market rate.

Currently, consumers are entitled to nine subsidised cylinders at Rs 410 each while the market price is Rs 850.

This means that consumers will get roughly Rs 4,000 in their bank account annually while they buy cooking gas at market rates. For those LPG consumers in these 20 districts who cannot complete formalities by June 1, a grace period of three months is being given to complete the formalities. After this period, all consumers who have not completed the formality will get LPG cylinders at market price, without any subsidy, till they complete the same.

This is the first scheme under the DBT platform which is a mass scheme and has no entitlement criteria. This is the most ambitious of the DBT rollouts as at least in urban areas a large number of people use cooking gas.

Nawanshahr among 20 Launch dists

• Consumers will need to have an Aadhaar number linked to their bank account which is to be given to LPG distributors
• The cash subsidy on each cylinder will be given directly to the consumer instead of the distributor while the consumer will get the cooking gas at market rate
• Currently, consumers are entitled to nine subsidised cylinders at Rs 410 each while the market price is Rs 850. This means that consumers will get roughly Rs 4,000 in their bank account annually while they buy cooking gas at market rates
• Bilaspur, Hamirpur, Mandi and Una in HP and Nawanshahr in Punjab are among the 20 districts where the scheme will be launched