Direct Benefit Transfer to LPG consumer (DBTL) scheme to cover 291 districts by 2014

New Delhi 13 December, 2013: The Minister for Petroleum & Natural Gas Shri Dr. M. Veerappa Moily informed the Lok Sabha in a written reply today that Direct Benefit Transfer to LPG consumer (DBTL) scheme will cover 291 districts of the country by 1.1.2014 covering a total of 9.22 crore LPG consumers. As per the approved expansion, DBTL scheme has been expanded to 184 districts covering 6.57 crore LPG consumers so far. The scheme was initially launched in 18 high Aadhaar coverage districts on 1.6.2013.

The Minister further said that pilot project based on Aadhaar authenticated LPG cylinder delivery was conducted in Mysore for three distributors of Indian Oil Corporation Limited (IOCL), Hindustan Petroleum Corporation Limited (HPCL) and Bharat Petroleum Corporation Limited (BPCL) during September 2011. A Scheme of Direct Benefit Transfer to LPG consumer (DBTL) was then formulated which took into account the learning from the pilot project.

He also stated that under the DBTL scheme all domestic LPG cylinders (up to and beyond the cap) will be sold to domestic LPG consumers who have linked their Aadhaar number to their LPG consumer number and to their bank account at market price. The difference between market price and subsidized retail selling price (excluding VAT) applicable on the date of delivery is automatically transferred to the consumer' Aadhaar linked bank account. One time Permanent Advance is also provided to each consumer at the time of joining the DBTL scheme for purchase of first cylinder. Consumers who have not linked their Aadhaar number to their LPG and bank database are allowed 3 months grace period from the date of launch of DBTL to seed their Aadhaar number in LPG and Bank database and join the scheme. They continue to receive their entitlement of LPG cylinders at Subsidized Retail Selling Price during the grace period. After the expiry of the grace period of 3 months, all LPG consumers will receive cylinders at Market Price and become entitled to subsidy/ Permanent advance on joining the scheme.

Dr Moily also informed the House that eleven states/ UTs have indicated their willingness to join the Scheme for Direct Transfer of Cash Subsidy on PDS Kerosene, 2012 was finalized based an experience of a Pilot Project, in consultation with Ministry of Finance and same was notified by MoP&NG on 11.10.2012. Out of these, three states have so far indicated the specific districts where the scheme would be implemented during 2013-14. A pilot Project for 'Direct Transfer of Cash Subsidy of PDS Kerosene' (PDS SKO) was launched in the Block Kotkasim, District Alwar (Rajasthan) in December 2011 by MoPNG, in collaboration with Government of Rajasthan. As per the report of the State Government of Rajasthan there has been a marked decline in consumption of Kerosene and consumption has been reduced by almost 60% of the allocation. Subsidy under the scheme is transferred into the Bank account of PDS SKO beneficiaries.

Under the DBTL scheme, subsidy is given at par to all consumer during the three months grace period regardless of whether their Aadhaar cards are linked to Bank accounts or not. Thereafter, all LPG consumers receive LPG cylinders at market price and become entitled to subsidy on joining the scheme. Additional VAT burden on market price of LPG cylinder is borne by LPG consumer. State Governments have been requested to make VAT on LPG specific and not ad valorem so that VAT burden remains the same for DBTL and non-DBTL consumers.




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