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Direct Transfer of LPG Subsidies From June1

Home > News >Direct Transfer of LPG Subsidies From June1

The government has chosen 20 districts to implement these Direct Benefit Transfer schemes. The consumers have to follow some simple steps to avail the benefits. They need to open a bank account, register and get the Adhaar card, link the Adhaar number with their bank account and initiate a request and cast their forms in the select LPG counters. Once their request is processed, the subsidies are automatically credited into the customer’s account.

This process is targeting 20 districts for implementation from June 1st because not all people have applied for Adhaar cards and even those who have Adhaar cards have not yet linked it with their bank accounts. Petroleum minister Mr.Veerappa  Moily has not given a clear indication as to when this would be implemented across India. 

Knowing the practical impossibility of ensuring that everybody in the 20 districts had Adhaar cards linked to their bank accounts within June 1st deadline, the govt. has wisely given a 3 month extension for the people to complete all formalities. The govt. offers this scheme so that the consumers don't have to pay the cylinder rate available in the market which is very exorbitant as compared to the subsidized rates. However, even after the three month extension, if the consumer does not complete the formalities, then he has to pay the market rate for the cylinders consumed.

When the Adhaar number, bank account number and LPG consumer numbers are all linked, the consumer can see a financial advance credited to his account once he or she makes the first cylinder booking. This is a huge welcome boost for people who have suffered the exorbitant rates of the cylinders for too long a time. These subsidies get credited into the Adhaar linked account for up to 9 cylinders per year. This scheme is very effective in controlling cylinder leakage and ensuring that illegal hoarding is avoided.

Though this scheme is seen as a tactic to retain power in the 2014 elections, it is a wonderful scheme if implemented properly. It helps the consumer to save huge costs and also curbs the agencies from selling these in the black market at huge rates.  However applying for Adhaar card and ensuring that one gets access to all these subsidies is purely a call that the citizen himself has to make. Hence the govt. is not sure as to when the entire population will have access to these benefits.

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