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Direct transfer of LPG subsidy in 18 districts from June 1

30 May 2013 Evaluate

The government will provide subsidy to LPG consumers in 18 districts across the country from June 1, 2013. The consumers in the select districts will get the subsidy amount transferred into their bank accounts linked with Aadhaar number. Earlier, the scheme was to be rolled out in 20 districts initially but the launch in Mysore in Karnataka and Mandi in Himachal Pradesh has been put off by a month due to assembly and Parliamentary by polls.

From June 1, consumers in 18 districts will get Rs 435 in their bank accounts every time, when they book a LPG refill. The government intends to extend the scheme to rest of the country but want to see the results of the roll-out in these districts.  Meanwhile, the move will help the government to cut its subsidy outgo by around Rs 8000-10,000 crore annually by eliminating diversions.

Oil Minister M Veerappa Moily said, although around 90 per cent of the LPG consuming population in these districts has Aadhaar number, the government will give a three-month grace period to them to procure the UID number and seed it with their bank accounts where cash subsidy has to be transferred. From September 1, only consumers having Aadhaar and banks accounts linked to them will get cash subsidy and the rest will have to buy LPG at market price, he added. There are around 14 crore LPG consumers in India and once the DBT for LPG is implemented, the government subsidy will reach the intended beneficiary only.    

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