LPG in India is provided at subsidized rates, ensuring that people can afford it. The typical subsidy amount ranges between Rs.160 and Rs.170 per cylinder, helping people save a considerable sum each year. Because of the large sums involved, there were some issues with misuse, so the government started the PAHAL scheme, or Direct Benefit Transfer for LPG. This program was launched back in 2013 but has since been expanded to everyone across the country. With this scheme, LPG consumers get their subsidy money directly in their bank accounts, cutting out the middleman.
Purpose of PAHAL Scheme for LPG Consumers
The main goal of PAHAL was to make sure that LPG consumers receive their subsidy benefits directly in their accounts, which helps prevent any misuse of funds. This way, the taxes we pay are used properly, providing real benefits to the consumers. By linking Aadhar to this scheme, the intention was to verify information, create a comprehensive database, and encourage digitization.
Salient Features and Benefits of the PAHAL (DBTL) LPG Scheme
- Individuals who wish to utilize the benefits under this scheme need to have a bank account. The subsidized amount will be directly transferred to this account.
- The cylinder will be available at the market price, with the subsidy amount paid to the account. This ensures that multiple pricing is avoided and everyone is on par.
- Under the scheme, a one-time advance will be transferred to the bank account of a customer. This amount will be before they buy their first cylinder from the market.
- The subsidy will be paid depending on how many subsidized cylinders an individual is entitled to in a given year.
- Customers can choose to either link their Aadhar number with their gas connection or could directly link their bank account.
- Customers who join the scheme will be paid an advance of Rs.568, which will be transferred into their account.
- Individuals who do not require the subsidy amount can choose to voluntarily give it up. The amount saved will be used for other purposes.
- Customers can register their mobile numbers with their gas agency to get SMS updates related to the scheme.
- The scheme would prevent the sale of unauthorized cylinders, reducing black market deals. This also improves overall safety, for LPG cylinders purchased in the black market could be prone to leaks and other issues.
- It would eliminate cases where individuals have multiple gas connections. Each household can have only one connection, with this move leading to regularization of practices.
- The scheme eliminates intermediaries, helping everyone involved save money. Not only consumers, even oil companies can save money through this, for they need not hire any third party to keep an eye on the subsidy amount.
- It helps agencies keep a track of their consumers, helping them provide improved services.
- Individuals who do not have a bank account cannot utilise the benefits under this scheme. This scheme thereby motivates people into opening bank accounts, pushing the country towards a cashless economy.
