35 more districts come under direct transfer of LPG subsidy

After its tremendous success in 20 districts, the watershed scheme of giving gas (LPG) subsidy directly to consumers in their bank accounts will be extended to 35 more districts like South Goa, Jalandhar and Ludhiana from September.

This will add about 1.4 crore LPG consumers to 2.12 crore already being covered by the scheme where consumers get an advance Rs 435 in their bank accounts the moment they book a LPG refill. They are then supposed to use this to buy cooking gas cylinders at market price which is double the subsidised rate of Rs 410 per 14.2-kg cylinder in Delhi. A similar amount will be transfered every time the consumer books for a subsidised refill.

"With this total number of districts to be covered by the direct benefit transfer for LPG (DBTL) scheme comes to 55," an official statement said in New Delhi. The districts which will be covered from September 1 including 12 in Kerala, 7 in Andhra Pradesh, 7 in Himachal Pradesh, 5 in Punjab, 2 Madhya Pradesh and one each in Maharashtra and Goa.

Since its launch on June 1, about 4 million direct cash transfers have been effected to consumer's bank accounts. So far, Rs 150.6 crore has been transferred in the hands of LPG consumers in the 20 districts of phase-1. "The government had envisaged launch of direct benefit transfer for LPG (DBTL) scheme with an aim to curb leakages and prevent black-marketing and provide subsidy to consumers in their bank accounts," it said.

All Aadhaar-linked domestic LPG consumers get an advance of Rs 435 in their bank account as soon as they book the first subsidised 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 rates.