The Union Government has made Aadhaar card mandatory for availing cooking gas (LPG) subsidies after November 2016.
In this regard, the Union Petroleum Ministry has asked Oil marketing companies (OMCs) to facilitate enrollments of Aadhaar of the consumers to avail the subsidy.
Currently, the government gives 12 LPG cylinders at subsidised rates per household in a year. The subsidy on every LPG cylinder is transferred directly into bank accounts of individuals who then buy the cooking fuel at market rates.
Why there is need of Compulsory Aadhar?
The LPG subsidy is an expenditure incurred from Consolidated Fund of India. The use of Aadhaar as identifier for delivery of government services/subsidies/ benefits will simplifies the delivery processes of government. It will also bring in transparency and efficiency in the delivery processes by plugging leakages and enable beneficiaries to get their entitlements from Government directly to them without any middlemen.
Aadhaar is a 12-digit unique number which acts as a proof of identity and address anywhere in the country. It is considered as the world’s largest national identification project. Its objective is to collect the biometric and demographic data of residents, store them in a centralised database. The unique number is issued by the Unique Identification Authority of India (UIDAI).