Direct cash transfer of LPG kicks off in 18 districts

Petroleum and Natural Gas Minister M Veerappa Moily today formally launched the direct benefit transfer scheme for liquefied petroleum gas at Tumkur in Karnataka. It was launched simultaneously in 17 districts.

With this, the scheme has become operational in 18 districts. The subsidy on LPG cylinders would be provided directly to consumers in their Aadhar-linked bank accounts.

Over 6.7 million will benefit from the scheme.

The districts where the scheme was launched today included Anantpur, Chittoor, East Godavari, Hyderabad and Ranga Reddy in Andhra Pradesh; Diu in Daman and Diu; North Goa in Goa; Bilaspur, Hamirpur and Una in Himachal Pradesh; Tumkur in Karnataka; Wayanad in Kerala; Wardha in Maharashtra; Pondecherry in Pondicherry; East Sikkim and West Sikkim in Sikkim; and Dhalai and West Tripura in Tripura.

Though the DBT scheme has been launched, the seeding level of Aadhar numbers with bank accounts is as low as 20 per cent in the 18 districts featured for the first phase.

On the other hand, the seeding of LPG database with Aadhar numbers is above 55 per cent and overall Aadhar penetration is 90 per cent in these districts.

Through the scheme, all Aadhaar-linked domestic LPG consumers will get an advance in their bank account as soon as they book the first subsidised cylinder.

The government would transfer Rs 4,000 to every household annually for buying nine cylinders at the current market price.

However, those who have not linked their Aadhaar number to LPG consumer number and their bank account will have three-months’ grace to avail the facility.

“During this period they will continue to get the LPG cylinders at subsidised rate, as they are getting today, up to the cap of nine cylinders,” the petroleum ministry said.

‘75% to be covered’

The UPA government's ambitious Direct Benefit Transfer scheme that seeks to provide direct transfer of all government subsidies to people's accounts, is expected to cover about 75 per cent of the population in the next three years.

Speaking in Tumkur on Sunday at the launch of the scheme, Veerappa Moily, Union Minister of Petroleum and Natural Gas, said, “We want to extend the scheme of domestic LPG supply to cover about 75 per cent of the population in the next three years,” Moily said.

Saying that the government had big expectations on DBT schemes, he said his ministry plans to incentivise the LPG gas distributors to ensure the success of the scheme.

“This special incentives for distributors is for the smooth and effective roll-out and for early implementation of the scheme across the country,” he said.

There are around 12,600 LPG distributors across the country who supply to over 140 million households covering 60 per cent of the population.

The oil ministry is working on a mechanism on incentivising distributors for a seamless implementation of DBT for LPG consumers scheme.

He said, “The details and the quantum of incentives is being worked out and will be decided in three months.”

The minister urged the state governments to support the oil ministry for the smooth implementation of the DBT for LPG consumers.

“The effective implementation of the DBT for LPG consumer’s scheme will be a 'big game changer’ in the country.

"The scheme is likely to see a saving of Rs 10,000 crore (Rs 100 billion) to Rs 11,000 crore (Rs 110 billion) annually,” he said.

Moily said the LNG and LPG were fuels of the century and were clean fuels compared to fossil fuels like kerosene and diesel.

It is important for state governments to encourage the use of gas in public transport and make Indian households kerosene free this benefits both the people as well as environment.