Direct Benefit Transfer to help control misuse of LPG by upto 15 per cent

MUMBAI: State-run oil marketers today said the direct benefit transfer (DBT) scheme for cooking gas, which is to be relaunched tomorrow, could help control misuse of the fuel by up to 15 per cent and save around Rs 8,000 crore per annum in the subsidy bill.

"Upto 15 percentage of multiple use or misuse of LPG cylinders can be controlled through the DBT scheme," Bharat Petroleum Corporation (BPCL) Executive Director (LPG business) told reporters here today.

The modified DBT scheme for cooking gas is to be relaunched in 54 districts tomorrow in the first phase and in the rest of the country from January 1, 2015.

The scheme which was launched in June 2013 and covered 291 districts, required the consumer to mandatorily have an Aadhaar number to avail of LPG subsidy.

However, the Modi government examined the scheme and modified it prior to its launch due to which Aadhar is not mandatory but a bank account is, to avail of the subsidy.

Consumers who had joined the scheme earlier and had received cash subsidy in their bank accounts do not need to do anything further, he said, adding they should check their cash transfer complaint (CTC) status online at www.MyLPG.in, an HPCL official said.

Consumers who do not have Aadhaar numbers could receive cash directly to their bank accounts without producing the Aadhaar number.

However, as and when they get Aadhaar numbers they may have to shift to Aadhaar-based cash transfer.

Consumers who are not on CTC would get a three-month grace period during which they would receive LPG cylinders at subsidised rate.

After the grace period, they would get an additional period of three months as 'parking period' during which they would have to buy cylinders at the market rate.

In the 54 districts covering 11 states, the scheme would cover 2.33 crore households. Currently, the Aadhaar generation level is 95 per cent in these districts.