Direct subsidy transactions for LPG cylinders cross 4.5 mn

DBTL scheme was launched on June 1 in 18 districts and in following months in Mysore in Karnataka and Mandi in HP

Continuing its successful run, the scheme for paying cooking gas (LPG) subsidy to customers directly in their bank accounts has crossed 4.5 million transactions with over Rs 187.65 crore given out so far.

Under the scheme launched on June 1, consumers get Rs 435 in their bank accounts when they book an LPG cylinder. They are expected to use this cash subsidy to buy an LPG refill at the market price, which is roughly double the subsidised rate of Rs 410 per 14.2-kg cylinder in Delhi.

"Over 4.5 million direct cash transfers have been effected to consumers' bank accounts by August 20 under the Direct Benefit Transfer for LPG (DBTL) Scheme. These transactions amounted to Rs 187.65 crore transferred in the hands of LPG consumers in the 20 districts," an official statement said.

The DBTL scheme was launched on June 1 in 18 districts and in following months in Mysore in Karnataka and Mandi in Himachal Pradesh.

Petroleum Minister M Veerappa Moily, the statement said, has recently approved roll out of scheme in 35 more high Aadhaar coverage districts from next month.

"This will add about 1.4 crore LPG consumers in these 35 districts taking total number of LPG consumers to 2.12 crore to fall in the ambit of DBTL for receiving LPG subsidy directly in their bank accounts," it said.

Further, roll out will be announced soon after a detailed review.

The districts which will be covered on September 1 fall in Kerala (12), Andhra Pradesh (seven), Himachal Pradesh (seven), Punjab (five), Madhya Pradesh (two) and one each in Maharashtra and Goa.

The government had envisaged DBTL with an aim to curb leakages and prevent black-marketing.

"All Aadhaar linked domestic LPG consumers get an advance of Rs 435 in their bank account as soon as they book the first subsidized cylinder before delivery.

"As soon as, the first subsidised cylinder is delivered to such consumers, the next subsidy will again get credited in their bank account, which can then be available for the purchase of the next subsidised cylinder at market rate," the statement added.