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India will start to directly transfer subsidy on retail sale of kerosene to bank accounts of some consumers by March 31, Oil Minister Dharmendra Pradhan told Reuters on Friday, as the country seeks to better target federal doles to the poor.
Pradhan said his ministry was in talks with state governments to launch the scheme in 25 districts.
India has saved Rs 10,000 cr ($1.56 billion) subsidy outgo on cooking gas through a similar scheme, which the government says has knocked off about 40 million illegal consumers from the system.
"The objective is not to stop the use of kerosene but to make it available to the targeted and poor audience," Pradhan said in an interview.
Pradhan also said his government was encouraging companies to buy more oil from the spot market instead of long-term contracts to take advantage of lower prices.
