Govt plans LPG subsidy rollout through cash transfer in 20 districts

Written by feBureau | New Delhi | Updated: Apr 11 2013, 06:14am hrs
The government is preparing itself for a quick rollout of subsidy on domestic cooking gas through the direct cash benefit transfer (DBT) scheme in 20 districts with effect from 15 May 2013. Pulok Chatterjee, the principal secretary to the Prime Minister, has written a letter to the petroleum ministry to expedite steps and ensure timely rollout of the scheme.

The scope of the scheme would be expanded and taken to other districts after crossing a certain threshold in Aadhaar enrolment. The government expects 14 crore beneficiaries to be included under the policy.

The National Committee on DBT, in its meeting held on 5 April 2013, took an important decision to roll out the transfer of LPG subsidy through DBT and directed the ministry to carry out the process with the help of oil marketing companies. As part of the process, the financial transactions will have to be managed by the three oil marketing companies (OMCs) without having to deal with intermediate agencies.

Explaining its plans of the rollout further, the subsidy will directly get transferred to the bank account of the beneficiaries holding an Aadhar card. Aadhaar seeding in OMC databases has risen considerably in the last four months. OMCs should make concerted efforts to ensure that the seeding rates improve further in the remaining time that is there, the letter said.

Eventually, the plan is for all subsidises on fuel, food and fertilizers to be deposited directly in the accounts of beneficiaries, using the Aadhar scheme, which assigns a unique biometric identity number to every citizen.