Petroleum Minister announces launch of Direct Benefit Transfer for LPG scheme in 20 Districts

Government of India is launching Direct Benefit Transfer for LPG (DBTL) scheme in 20 high Aadhaar coverage districts (as annexed) from 1.6.13. The scheme aims to curb leakages and prevent black-marketing and provide subsidy to consumers in their bank accounts.

All LPG consumers are advised to immediately do the following to avail of subsidy in their bank accounts:

• Get an Aadhaar number if they don™t have one at Aadhaar enrollment centers.
• Open a bank account with Aadhaar number if they do not have one by going to a bank branch with Aadhaarnumber.

OR

If they already a bank account then link their Aadhaar number with their bank account by visiting their branch or through a request form available with LPG distributors and deposit it in the drop boxes placed at LPG distributors premises.

• Provide Aadhaar numbers to LPG distributors for linking with LPG consumer number.

For the benefit of LPG consumers, OMCs have provided the facility on their web-sites to check whether the Aadhaarnumber has been attached to LPG consumer number/bank account.

For the benefit of LPG consumers, who cannot complete formalities by 1.6.13, 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.

The salient features of the DBTL scheme are described below:

• All LPG consumers desirous of availing subsidy will have to provide the Aadhaar number to Oil Marketing Companies and also to their bank accounts for linking with their LPG consumer numbers and bank accounts respectively.
• All Aadhaar linked domestic LPG consumers will get an advance in their bank account as soon as they book the first subsidized cylinder even before delivery. This is to reduce their financial burden when they purchase the first LPG cylinder after launch of scheme at market rate.
• As soon as, the first cylinder is delivered to such consumers, subsidy eligible on date of delivery will again get credited in the bank account, which will then be available for the purchase of the next cylinder at market rate.
• Thus, subsidy eligible on each such domestic cylinder, up to the cap of 9 cylinders per year will be directly transferred to the Aadhaar enabled bank account of the consumer.
• All LPG consumers who are not Aadhaar linked will have three month grace period to link LPG consumer number and bank account with Aadhaar number and during this period they will continue to get the LPG cylinders at subsidized rate, as they are getting today, up to their entitlement.
• After the grace period, LPG cylinders will be sold to all domestic LPG consumers at market price. However, the subsidy will be transferred to only those who have linked Aadhaar in LPG database and Bank account. Others will not get any subsidy.
• After the grace period, as soon as a consumer links the Aadhaar number to bank account and in LPG database, one-time advance and subsidy transfer will re-commence as per balance entitlement.
• Consumers who do not provide Aadhaar will continue to get LPG cylinders at market price.

Annexure

List of 20 DBTL districts