Thursday 1 January 2015

LPG Consumers to Get Subsidy via Bank from Jan 1

PAHAL or Pratyaksh Hanstantarit Labh or PAHAL will replace Direct Benefit Transfer Scheme for LPG from January 1, 2015 as LPG consumers across the country will start getting cash subsidy into their bank account so that they can buy the cooking fuel at market price.

Cash equivalent to the difference between the current subsidized rate and the market price is transferred to the bank account of a consumer the moment he or she makes the first booking for a cylinder after joining the scheme.

The moment a consumer takes delivery of the cylinder, another advance cash subsidy is transferred to the bank account. DBT (direct benefit transfer) is designed to ensure that the subsidy meant for the genuine domestic customer reaches them directly and is not diverted.

The ambitious plan, launched by the previous UPA government in June 2013 but abruptly stopped earlier this year following court orders, has been modified to exclude the requirement of unique identification number (Aadhaar) for availing the cash subsidy.

The scheme has been rolled out in 54 districts from 15th November and will extend to rest of the country from 1st January. Government is looking at saving Rs 10,000 crore in subsidy by curbing diversions and pilferages. Under the scheme, consumers will now receive SMS at every stage of enrollment in the scheme.

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