Jharkhand's petrol subsidy scheme linked to monthly self-certification

CM Soren to launch scheme on January 26

The Jharkhand state government’s decision to offer a subsidy of Rs 250 per month on petrol consumption will be linked to self-certification by the beneficiaries. According to a senior state government official in the Department of Food, Public Distribution and Consumer Affairs, the intended beneficiaries will have to submit a monthly self-certification to receive the amount in their bank accounts.

“If a registered beneficiary submits the self-certification form in February, then the amount will be credited in his or her account by March 10. This cycle will have to be repeated every month and the amount will credited before the 10th of the next month. The beneficiary will acknowledge in the self-certification form that the registered two-wheeler has been utilised during a month,” the official told Business Standard.

In December 2021, Jharkhand Chief Minister Hemant Soren had announced a subsidy of Rs 25 per litre of petrol for ration card holders in the state. The subsidy was capped to 10 litres of petrol consumption or Rs 250 in a month. This made Jharkhand the first state in the country to offer targeted subsidy on auto fuel.

The subsidy scheme will be administered by Jharkhand’s Department of Food, Public Distribution and Consumer Affairs. Intended beneficiaries need to register themselves on the CMSUPPORTS app launched by Soren last week. This app is for linking the ration cards of poor people covered by State’s National Food Security Scheme or Jharkhand State Food Security Scheme with their two-wheelers under the Petrol Subsidy Scheme.

According to the state government, 16 thousand applications were received for the scheme within the first 24 hours of the app launch on January 20. An official statement said that 656 applications of Bokaro, 544 of Ranchi, 407 of Lohardaga, 326 of Seraikela-Kharsawan, 289 of Khunti, among others, had been approved under the scheme.

Once registered, the beneficiaries covered by the ration cards can get the Rs 250 per month transferred into to their bank accounts through Direct Benefit Transfer (DBT). To be eligible, beneficiaries also need to have a driving license, a two-wheeler registered in the state, and an Aadhar-linked bank account. The beneficiary will be authenticated through a One-Time-Password (OTP) sent to the registered mobile number linked to the Aadhar card.

Soren is going to officially launch the scheme from Dumka on January 26.

Historically petrol and diesel were subsidised by the central government. But in 2010, petrol was deregulated and the centre allowed oil companies to sell the fuel at ‘market pricing’. In 2015, diesel was deregulated by the centre. This allowed much fiscal leg room to the centre that eventually started levying heavy taxes on auto fuels through excise duties when global crude oil prices fell. The state governments also levied tax on auto fuels through Value Added Tax (VAT) and cesses.

Petrol in Jharkhand’s capital Ranchi is currently sold at Rs 98.52 a litre. This includes a 22 per cent VAT (minimum Rs 17 per litre) and an additional cess of Rs 1 litre that is charged by the state government. The centre rakes in Rs 27.90 per litre through excise duty on petrol.