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Govt working on extending direct benefit scheme to LPG: Moily

10 Apr 2013 Evaluate

The government is working out propositions to roll out direct transfers of cash subsidy for cooking gas (LPG) to the final consumers under the Direct Benefit Scheme (DBT).  After a meeting with the finance minister, oil minister M Veerappa Moily said that, they discussed moving LPG under Direct Benefit Transfer scheme and the finance ministry is working out modalities of LPG subsidy under DBT. 

Presently, state-owned oil firms are selling domestic cooking gas at a highly subsidised rate of Rs 410.50 per 14.2-kg cylinder, which is half the market price and the difference is paid by the Government in the form of subsidy to oil companies. Once the DBT for LPG is implemented, the Government will transfer the subsidy of around Rs 435 per cylinder directly to consumers instead of giving it to oil companies and will transfer close to Rs 4,000 to every household annually to enable people to buy 9 cylinders of LPG at market price.

The government has planned to implement the DBT for LPG in phases beginning with one district and extending to 20 by May 15. Further, the proposed scheme will be extended all over the country through ‘Aadhar’ the unique identification number and will have their bank accounts linked to that.

 

 

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