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The petroleum ministry has managed to cover two-thirds of the country’s 150 million consumers of liquefied petroleum gas (LPG) under the modified version of the Direct Benefits Transfer in LPG scheme launched nationwide on January 1.
The scheme, named Pratyaksh Hastantarit Labh, is the largest cash transfer programme in the world. It aims at directly transferring cash subsidy on cooking gas into the bank accounts of consumers thereby weeding out duplication and plug leakages. The petroleum ministry the government had transferred Rs 4,299 crore since November 15 to consumers in 113.3 million transactions.
Prime Minister Narendra Modi called the increased coverage of the scheme a “momentous accomplishment” and tweeted the scheme will "bring an end to black-marketeering and subsidy will reach people more effectively. Its role in nation-building is important".
Under the scheme, LPG cylinders are sold at market rate. Consumers receive Rs 558 in their bank accounts so that they can buy LPG at market rate of Rs 605 per 14.2-kg cylinder. Subsidised LPG currently cost Rs 417 per cylinder. According to oil minister Dharmendra Pradhan, the scheme will help the government save 10-15 per cent of the Rs 40,000 crore annual LPG subsidy.
