PMO asks PetroMin to roll out cash transfer for LPG

Ministry says it is not ready yet

Before launching the Direct Benefits Transfer (DBT) scheme across more districts, the petroleum ministry wants to ensure a minimum level of penetration for Aadhaar and banking accounts, according to an official privy to the development.

Pulok Chatterji, principal secretary to the prime minister, has written to the petroleum secretary, urging steps be taken to transfer subsidy on liquefied petroleum gas through DBT in 20 districts, according to a Prime Ministers’ Office release.

“The roll-out is to take place in other districts after crossing a certain threshold in Aadhaar enrolment in each district. The ministers of finance and petroleum and natural gas have assured the prime minister all necessary steps would be taken to ensure the roll-out happens as planned,” Chatterji said in the letter.

“We want them to fix a trigger level for penetration, if not 100 per cent, for the benefit of the customers. However, the first phase would be rolled out on May 15,” said an official.

The main challenge for both the ministries would be is ensuring that the consumer database with OMCs and the bank accounts of consumers are seeded with Aadhaar numbers. “Further, the financial transactions will have to be managed by the three OMCs without having to deal with intermediate agencies,” he added.  

According to the PMO, MoPNG will need to coordinate with financial services and the banks to ensure that the seeding in customer bank accounts also improves. “A dedicated team in MoPNG for this effort would help,” Chatterji added.