Direct benefits transfer for LPG again put off

This is the second postponement of the DBT launch in LPG. It was initially planned to be introduced from January 1

In a setback to the government’s Direct Benefits Transfer (DBT) programme, its scheduled launch for the liquefied petroleum gas (LPG or cooking gas) subsidy on May 15 has been postponed.

The decision has been taken owing to the low seeding level of 13 per cent for Aadhar numbers with bank accounts.

This is the second postponing of the DBT launch in LPG. It was initially to be introduced from January 1, but the oil marketing companies (OMCs) said they couldn’t proceed so early.

As per the earlier plan, the Cabinet was supposed to take a decision on the process of disbursal of subsidy on cooking gas through DBT within this week. However, with the Karnataka elections results to come up on May 8 and the United Progressive Alliance facing heat from the Opposition over corruption charges, it is believed that Cabinet is unlikely to take up the issue soon.

“We would like to launch it within this month only, but it is not going to be launched on May 15. This is mainly because of the lower seeding level of Aadhar numbers with bank accounts,” said a petroleum ministry official who did not want to be quoted.

Till now, the seeding level of Aadhar numbers with bank accounts is as low as 13 per cent in the 20 districts figured for the first phase. On the other hand, the seeding of LPG data base with Aadhar numbers is slightly above 50 per cent, making things difficult for the authorities to launch the programme at one go.

When asked, Petroleum Minister M Veerappa Moily refused to comment on the issue.

The National Payments Corporation of India and State Bank of India  are in charge of disbursement of money to customers’ accounts. Though the petroleum ministry had earlier given a choice of using the National Population Register numbers, in addition to Aadhaar, for transfer of the LPG subsidy, the low seeding level is a major hindrance.

Direct cash transfer on LPG and kerosene is expected to save Rs 15,000 crore on the subsidy. Moily had earlier said the DBT on LPG would cover the entire country by October. The OMCs have a database of 140 million customers. To raise the seeding, the ministry is preparing to launch a massive print and audio-visual campaign on the issue.

A senior member in the Unique Identification Authority of India (UIDAI) said, “We are always being blamed on the seeding. But the major issue is related to banks. None of these banks are cooperating. Moreover, the process of finding beneficiaries and to get them enrolled is itself a major headache for us. If it is not getting rolled out, the blame should not be on UIDAI, as it is a common effort of various government branches.”   

The 20 districts involved in the first phase covered Andhra Pradesh, Daman and Diu, Goa, Himachal Pradesh, Karnataka, Kerala, Maharashtra, Pondicherry, Sikkim and Tripura.