Aadhar compliance made mandatory for LPG subsidy

Three months window for 20 districts from June 1

Domestic LPG consumers in 20 districts would now have to get the aadhar number and seed it with their bank accounts to avail of subsidy on nine cylinders.

This exercise would have to be completed in three months starting June 1 after which they would lose their entitlement for subsidy.

The mandatory requirement of aadhar number and its seeding is part of the Direct Benefit Transfer (DBT) scheme for LPG customers announced today.

Addressing a press conference, Petroleum minister M Veerappa Moily said, “Reciprocal initiative has to be taken by consumers.”

He said all LPG consumers would get an advance in their bank account as soon as they book the first subsidize cylinder even before delivery. This is to reduce their financial burden when they purchase the first LPG cylinder at market rate after launch of the scheme.”

As soon as, the first cylinder is delivered to such consumers, subsidy eligible on date of delivery will again get credited in the bank account, which will then be available for the purchase of the next cylinder at the market rate.

The launch of DBT in LPG is the biggest programme under the government policy of direct credit of subsidy. There are 14 crore LPG consumers in the country which comprises 60% of the population. “So, the first step is a small one,” said Vivek Rae, secretary, ministry of petroleum and natural gas.

On the question of why Aadhar has become compulsory, Rae said it was needed to credit LPG subsidy into bank accounts.

“If you want LPG subsidy then aadhar is compulsory.” After the grace period of three months, as soon as a consumer links the Aadhar number to bank account and in LPG database, one-time advance and subsidy transfer will re-commence as per the balance entitlement.

There is 89% Aadhar penetration in these districts with 52% seeding with LPG data base of some 75 lakh consumers in the 20 districts. Seeding with bank account is 15%. The 20 districts include five in Andhra Pradesh, four in Himachal Pradesh, two each in Karnataka, Kerala and Madhya Pradesh, one each in Dam and Diu, Goa, Maharashtra, Pondicheery and Punjab.

An assessment would be done after a month. “We will review the scheme and then extend to other districts, he said. Once implemented, the government will transfer close to Rs 4,000 to every household annually to enable people to buy nine cylinders of LPG at the current market price.

Currently, state-owned oil firms sell domestic cooking gas at a highly subsidised rate of Rs 410.50 per 14.2-kg cylinder. Consumers are entitled to get nine cylinder of 14.2-kg each at the subsidised rate in a year. Each consumer will get a little less than Rs 4,000 annually but will have to buy LPG at market price.

One fourth of LPG subsidy would be released by the ministry of finance every quarter to oil marketing companies who will be responsible for crediting it into the account of LPG consumers.

What consumers need to know?

<sup>* Get an Aadhaar number if they don’t have one at Aadhaar enrollment centers

* Open a bank account with Aadhaar number if they do not have one by going to a bank branch with Aadhaar number

OR

* If they already a bank account then link their Aadhaar number with their bank account by visiting their branch or through a request form available with LPG distributors and deposit it in the drop boxes placed at LPG distributors premises</sup>

* Provide Aadhaar numbers to LPG distributors for linking with LPG consumer number