DBT scheme for LPG to be extended to 35 more districts

The Petroleum and Natural Gas Ministry has decided to extend LPG Direct Benefit Transfer (DBT) scheme to 35 more districts from September 1, 2013 after observing a good response from the districts already in the scheme thus taking the total coverage to 55 districts.

The districts which will be covered include 12 in Kerala, 7 in Andhra Pradesh, 7 in Himachal Pradesh, 5 in Punjab, 2 in Madhya Pradesh and one each in Maharashtra and Goa

The decision to include 35 more districts would add about 1.4 crore consumers to the 2.12 crore already being covered by the scheme where consumers get an advance of Rs. 435 in their bank accounts.

What is the purpose of the DBT scheme?

The government has launched DBT scheme with the aim of restricting leakages, preventing black marketing by sending subsidy directly into the beneficiary’s bank account.

How does the DBT scheme for LPG benefit the consumer?

Consumers get their subsidy directly in their bank accounts. All Aadhaar linked domestic LPG consumers get an advance of Rs. 435 an LPG cylinder in their bank account as soon as they book the first subsidised unit before delivery. When the first subsidised cylinder is delivered to such consumers, the next subsidy will be credited to their bank account which can then be used for the purchase of the next subsidised cylinder at the market rate.

What is the current status of DBT?

Since its launch on June 1, 2013 about four million direct cash transfers have taken place to consumers’ bank accounts. So far Rs. 150.6 crore has been transferred to consumers in 20 districts of phase I.

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