Moneycontrol
Get App
you are here: HomeNewsBusiness
Last Updated : Dec 12, 2019 11:20 AM IST | Source: Moneycontrol.com

HPCL auto-booking LPG refills under PMUY without customers’ knowledge: Report

Dealers sell the subsidised cylinders on the open market, which leads to diversion where the subsidy is deposited to beneficiaries under direct benefit transfer, but the cylinder is being used by someone else

Representative image
Representative image
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Hindustan Petroleum Corporation (HPCL) is auto-booking LPG cylinders for inactive customers covered under the Pradhan Mantri Ujjwala Yojana (PMUY) without their knowledge, reports Business Standard.

This move by the state-run oil marketing company (OMC) comes after it emerged that LPG refills under the scheme have been falling. HPCL, however, termed it as an 'outreach and awareness' exercise, it added.

Moneycontrol could not independently verify the report.

Close

The company has auto-booked first refills for at least five million customers (25 percent) subsidised under the PMUY, the report said. HPCL covers 20 million of the scheme’s 80.3 million customers.

This has created problems at the distributor's end as customers are reluctant to accept cylinders they did not book, Pawan Soni, General Secretary, Federation of LPG Distributors of India, told the paper.

Another distributor pointed out that the practise also creates a fake backlog, which impacts their star rating and attracts penalty or licence termination in some cases.

To evade this, they sell subsidised cylinders on the open market, which leads to diversion where the subsidy is deposited to beneficiaries under direct benefit transfer (DBT), but the cylinder is being used by someone else.

The Centre is spending close to Rs 32,989 crore on LPG subsidy in FY20.

 

Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.
First Published on Dec 12, 2019 11:20 am
Sections
Follow us on