Aadhaar & LPG: Cabinet puts subsidy transfer scheme on hold; raises subsidised LPG cylinder cap to 12
Moneylife Digital Team 30 January 2014

Moily said there were complaints about implementation of the direct benefit transfer for LPG-DBTL scheme and a committee has been formed to look into the issue

Bowing to political pressure and hue and cry from common citizens, the Indian government on Thursday put on hold its scheme to transfer subsidy money into bank accounts of consumers through Aadhaar. The cabinet also raised the quota of subsidised LPG to 12 cylinders per household in a year from nine at present.


Oil Minister M Veerappa Moily, while announcing the decision taken by the Cabinet Committee on Political Affairs, said the direct benefit transfer for LPG (DBTL) scheme, where consumers in as many as get 289 districts in 18 states got the subsidy amount in their bank accounts so that they could buy cooking gas at market rate, has been put on hold.


Currently, a subsidised LPG cylinder costs Rs414 while the market price comes to Rs1,021.


Explaining the reasons behind the move to put on hold a scheme that was dubbed 'game-changer, he said there were complaints about implementation of the scheme and a committee has been formed to look into them.


"Pending the committee examining the issues, the Aadhaar-linked LPG subsidy transfer has been put on hold," he said.


There had also been demands from within the Congress to scrap the DBTL as many consumers did not either have the Aadhaar number or banks accounts linked to the Aadhaar number.


DBTL, under which consumers got Rs435 advance money in their bank accounts so as to help them buy a LPG cylinder at market price, was this month extended to 105 districts including Delhi and Mumbai.


He said, households will get one cylinder extra, on top of the quota of nine cylinders, in February and March and from April they will be entitled for 12 cylinders -- one cylinder per month at subsidised rates.


Moily also said raising the LPG quota will cost Rs5,000 crore in additional subsidy annually.


Earlier this month, Congress vice president Rahul Gandhi had at the All India Congress Committee (AICC) session earlier this month asked Prime Minister Manmohan Singh to increase the quota of subsidised LPG to 12 cylinders of 14.2-kg each.


Moily said 89.2% of the 15 crore LPG consumers use up to nine cylinders in a year and only 10% have to buy the additional requirement at the market price.


After the quota is raised to 12, about 97% of the LPG consumers would be covered by subsidised LPG, he said.


The government had initially capped the supply of subsidised domestic LPG cylinders to six per household annually in September 2012 in a bid to cut its subsidy bill. The quota was raised to nine in January 2013.


Consumers, who have exhausted their quota, have to buy LPG at the market price of Rs1,258 per cylinder. Subsidised LPG costs Rs414 per cylinder in Delhi.

1 decade ago
1) Received on 12Feb2014 first (Forced) DBTL subsidized HP-LPG Cylinder under Cash Receipt No.175550 for Rs. 1162 amount without any breakup.

2) Concerned authorities adamantly-stubbornly ignored to mention in Cash Receipt, Breakup details as follows,

Amount payable Rs. 1162 = Rs.423.50 + DBT Rs. 738.5

(Please Note: Actual amount for subsidized direct supply without DBTL scheme of Rs. 423.50 was obtained from Delivery Person after verifying the Cash Receipt for other Consumer.)

3) Accordingly the pending DBT amount to be received will be Rs. 738.5 - Rs. 435 = Rs. 303.5 (My worked out calculation. Rs. 435 first blind DBT already received.)

Concerned authorities forceful DBTL implementation without protecting the Consumer in all respect is highly objectionable.

Concerned authorities foremost duty is to work sincerely and faithfully for the authentic Domestic Consumers.

Concerned authorities should Stop DBTL if not interested to implement proper breakup in Cash Receipt for easy verification of DBT amount and actual subsidized cost of cylinder for Consumer.
Concerned should take up the matter urgently to help and protect authentic Domestic LPG Consumers.

All Indian Citizens forced under DBTL scheme for Domestic LPG supply are suffering due to irresponsible improper
implementation, leading to hardship and harassment by all concerned authorities, also leading to wasteful administration at all levels.

1 decade ago
1) Totally forced and irresponsible implementation of DBTL scheme. HPGAS Complaint Category "DBTL problem" not available under Complaint Type for Domestic LPG supply.

2) Delivery cum Cash invoice receipt for subsidized supply of Gas Cylinder must have break up details of DBTL amount matching to subsidized supply applicable to supply without DBTL scheme.

3) Do not make supply of subsidized Gas Cylinder under DBTL unless and until properly implementing, totally transparent details of breakup as mentioned above in Delivery cum Cash invoice receipt.

4) No direct email IDs for LPG Consumer.

Concerned need to do the needful.
1 decade ago
The whole row of linking Aadhar cards to LPG registrations and bank accounts could have been avoided if the provision to enter bank account details as well as lpg regn number was available on the aadhar application form.
Even now if a provision to submit bank details and lpg registration numbers is provided on the aadhar site, it could be updated immediately and all the confusion and delay could be avoided. Now that the minister has put on hold the "linking" issue, he has not announced that till a decision is taken, the cylinders would be given to the customer at subsided rates and all "subsidy through banks" will be stopped. This is now creating two types of lpg customers - one who gets the cylinder at the subsidy price (non aadhar) and others who get it at a higher price as the subsidy is not matching the price difference.
S K Nataraj
Replied to MURALI MENON comment 1 decade ago
Are banks in a position today to handlethe subsidy administration for LPG? Does their infrastructure support this? Do they have proper grievance Redressal mechanisms , even assuming that they can handle the Subsidy and DBT? Don't you feel it has the portents to break out into the biggest scam in recent times?
Replied to S K Nataraj comment 1 decade ago
Most likely no and Consumer will have to run behind authorities endlessly resulting in harassment. For any reason if the DBTL scheme becomes compulsory correct DBTL amount credited should be clearly mentioned on the Gas cylinder delivery receipt for the record of Consumer. Credit detail in Bank should correlate respective Gas cylinder delivery receipt for the record of Consumer.
Replied to MURALI MENON comment 1 decade ago
Our Nation needs Administrative Servants, who put their honest efforts in doing work right way for the first time and every time and not Administrative Monarchs who deliberately create confusion for Citizens to run behind administrative authorities at all level.
S K Nataraj
1 decade ago
A complete somersault by the Government, and not surprisingly with elections round the corner. It is a shame that the Aadhaar Card which was much touted as a game - changer is now going to be dumped. It was launched with a lot of fan- fare, but even though several crores of rupees have been spent on it, it does not look like it will achieve finality in the near future, because of its poor planning and shoddy implementation. Our planners surely have to answer for all ths. It is a huge waste of tax- payers money.
1 decade ago
DBTL Scheme for LPG Cylinders of Domestic Consumers is definitely waste on all clerical administration at all levels.
Domestic Consumers shall be harassed by the all categories of Administrative Monarchs. Also leading to corruption, and noway of tracking and exposing it.
To prevent misuse of selling domestic LPG cylinders in open market for profit needs to be achieved by other strict measures and not by DBTL Scheme.
Simple Indian
1 decade ago
Even though the UPA Govt has stalled the DBT for LPG scheme, it had advertised just last week urging people to enrol for Aadhar for precisely this reason. Isn't that blatant violation of the SC order ?
Also, increasing the subsidy on LPG will benefit both poor and not-so-poor who can very well afford to buy the LPG cylinders at market rates. Why doesn't the Govt create slabs (as done for Ration Cards) to benefit such welfare schemes only to the needy ? But then, populist measures like this is what one can expect in a pre-poll period.
Dayananda Kamath k
Replied to Simple Indian comment 1 decade ago
it is a two pronged strategy.they forced you to take adhaar by linking everything to it. they are taking credit for adhaar as an achevement. this entire direct credit of subsidy in the name of giving 100% subsidy to common man instead of 15% as being given as admitted by them selves is a scheme to avoid being caught in scams. if you can not monitor subsidy to some 100 accounts and it takes years to audit it. how anybody can audit crores of account.
Simple Indian
1 decade ago
The UPA Govt promptly decided to raise the LPG cylinder cap from 9 to 12 after Congress VP Rahul G raised his concerns about it. All this while many other parties had been petitioning the PM and others in govt to increase the cap for over an year. This is just political posturing by Congress to project its PM-in-waiting as a people-friendly leader of the masses. His recent interview to TimesNow Editor Arnab Goswami showed his political naivety and immaturity though.
suresh hegde
1 decade ago
Veerappa Moily was highly inconsistent about lining Aadhar and about number of cylindrs to be supplied at subiedised rate. UPA eying on ensuing election has played this card. If at all UPA in genertal anmd Rahul Gandhi in particular is so conncerned on this should have resolved this much early. What happens to the amount of tension, hardship etc that were faced by common by on account of gas distributors and oil company and Bank. Few Banks have even collected Rs.100/- to entertain requset for Aadhar link. Even this decision would not have any impact in the absence of strong implimentation at root level.
MG Warrier
1 decade ago
Putting on hold implementation of subsidy-transfer to Aadhar-linked bank accounts and promise to supply additional two LPG cyliders during 2013-14 at subsidised price make good news for aam aadmi and may boost the morale of supporters of UPA Government. Ask someone who is booking an LPG cylinder about what is happening at the ground level. The front desk at the gas agency will continue to insist on AADHAAR Card and ask you to confirm that you have AADHAAR-linked your bank account to which subsidy is to be credited. This report also does not bring clarity as to the alternative route for providing subsidy.
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