LPG subsidy to go directly in bank accounts of sunbscribers from 1 Oct
29 April 2013 7:16 AM IST
The government plans to provide subsidy to 14 crore LPG subscribers directly in their bank accounts from 1 October, using the Aadhaar payment platform.
The government, official sources said, has decided to launch ‘direct benefit transfer (DBT) for LPG throughout the country tentatively from 1 October’.
‘This (transfer of LPG subsidy) would require a much larger number of beneficiaries to be covered for opening of bank accounts and linked to Aadhaar and banks have been asked to get ready for the launch,’ said one official.
A consumer will have to get his or her bank account seeded with Aadhaar number for getting the LPG subsidy. The annual subsidy per consumer is estimated at Rs 4,000. The supply of subsidised LPG cylinder has been capped at 9 cylinders per year for a consumer.
While about 32 crore Aadhaar cards have been issued by UIDAI, only 80 lakh bank accounts have linked to the unique identity numbers so far.
Under a pilot project for LPG subsidy transfer, 20 districts in the country will be covered by 15 May.
While the exact procedure to transfer the subsidy is being worked out, sources said subscribers will have to buy the LPG bottle at prevailing market price (currently Rs 901.50 per 14.2-kg cylinder in Delhi) and subsequently the subsidy amount will be transfered to the bank account.
Finance Ministry has asked public sector banks to speed up process of linking accounts with Aadhaar. The govt expects that DBT will eliminate all ghost LPG connections and diversion of cylinders. Under DBT scheme, subsidies and other benefits are transfered directly into Aadhaar linked bank account.
The government, official sources said, has decided to launch ‘direct benefit transfer (DBT) for LPG throughout the country tentatively from 1 October’.
‘This (transfer of LPG subsidy) would require a much larger number of beneficiaries to be covered for opening of bank accounts and linked to Aadhaar and banks have been asked to get ready for the launch,’ said one official.
A consumer will have to get his or her bank account seeded with Aadhaar number for getting the LPG subsidy. The annual subsidy per consumer is estimated at Rs 4,000. The supply of subsidised LPG cylinder has been capped at 9 cylinders per year for a consumer.
While about 32 crore Aadhaar cards have been issued by UIDAI, only 80 lakh bank accounts have linked to the unique identity numbers so far.
Under a pilot project for LPG subsidy transfer, 20 districts in the country will be covered by 15 May.
While the exact procedure to transfer the subsidy is being worked out, sources said subscribers will have to buy the LPG bottle at prevailing market price (currently Rs 901.50 per 14.2-kg cylinder in Delhi) and subsequently the subsidy amount will be transfered to the bank account.
Finance Ministry has asked public sector banks to speed up process of linking accounts with Aadhaar. The govt expects that DBT will eliminate all ghost LPG connections and diversion of cylinders. Under DBT scheme, subsidies and other benefits are transfered directly into Aadhaar linked bank account.
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