DBT for LPG to be rolled out in 269 districts by January 1: FM

Following the success of its pilot programme in 20 districts, the scheme to pay LPG subsidy directly to cooking gas consumers will be extended to 269 districts by January 1, Finance Minister P Chidambaram said today.
Under the scheme, Rs 435 is credited to the accounts of LPG consumers the moment they book a cooking gas refill or cylinder. The consumer is then supposed to use this to buy a 14.2-kg LPG cylinder at market price, which is almost double of Rs 410 per bottle rate in Delhi.
The moment the refill is bought, another Rs 435 is credited to Aadhar-linked bank account of LPG consumer.

"Based upon the experience gained in 20 districts, we have decided to rapidly rollout the DBT for the LPG over 269 more districts," Chidambaram said while briefing reporters on the decisions taken by Cabinet Committee on Economic Affairs.
The scheme is aimed at checking subsidised LPG cylinders meant for household use finding way on the black market or being used in commercial establishments. The government estimates it can save Rs 9,000 crore annually when the scheme is rolled out all over the country.
Under the scheme, consumers will get cash subsidy to buy 9 refills of 14.2-kg each in a year. Any requirement beyond that would have to be purchased at market price.

"By January 1, a huge proportion of LPG beneficiaries will be covered under the DBT system. They will get their subsidy credited one month in advance. Therefore, they can go and get their cylinder for a month following that. It is already successful in 20 districts," the Finance Minister said.