Aadhaar-LPG fail to link well

Hyderabad: Aadhaar-LPG linkage problems have steadily worsened for domestic LPG consumers in AP.

The hasty decision of Oil Marketing Companies to extend the linkage scheme to all districts in the state, ignoring the fact that not even half of the consumers have seeded their LPG connections with Aadhaar and bank accounts so far, is turning out to be a big problem, especially for middle and lower income groups.

Added to their woes, no redressal mechanism exists to resolve issues of consumers with banks, UIDAI, OMCs and gas dealers trying to put the blame on each other for the mess. Many of those who have seeded their Aadhaar numbers with gas agencies and banks are not receiving their subsidy amounts and are ending up paying Rs 1,300 to buy a cylinder against the per-Aadhaar linkage price of Rs 412.50. People of lower income groups have actually started returning cylinders, unable to bear the cost.

In Hyderabad and Ranga Reddy alone, over 9 lakh consumers are losing subsidy due to lack of cards and Aadhaar-LPG linkage issues. “Undelivered cylinders at gas agencies have increased significantly after the introduction of the Direct Benefit Transfer (DBT) scheme.

On average, 200 cylinders remain undelivered every day under the limits of each gas agency as customers are returning them, unable to pay Rs 1,327 for the LPG. This trend is being witnessed more in the case of consumers from lower income groups,” said Mr D. Ashok Kumar, president, Hyderabad LPG Dealers’ Association.

In Hyderabad, out of the total 13,88,107 domestic LPG connection holders, only 9.73 lakh have seeded their connections with Aadhaar and bank accounts. Thus about 4 lakh consumers have been losing their subsidy amounts since September last year.

Similarly, in Ranga Reddy district, of the total 14,32,159 domestic LPG connection holders, only 9.75 lakh consumers have seeded their connections with Aadhaar and bank accounts and about 4.57 lakh consumers are losing the subsidy amounts in the district.

Ironically, even after seeding LPG connections with Aadhaar and bank accounts, many consumers in the city are not receiving the subsidy amount in their bank accounts after the delivery of the cylinders.

"When we check the linkage status on the OMC’s website, it flashes all 'green' confirming that the linkage was done successfully. I have not been receiving the subsidy amount since September last year though the website clearly shows that the linkage was done.

I utilised three cylinders and ended up paying from Rs 1,000 to Rs 1,300 till now for each cylinder. When I enquired with the gas agency and banks, they said the problem was with the National Payments Corporation of India, which monitors the online disbursal of subsidy amount. They said my data had not been updated with it. Why should I suffer for the mistakes committed by the officials though I have done everything correctly on time?" asked Mr P. Sundar Raj, an LPG consumer from Secunderabad.

There have also been cases where subsidies have been promptly paid for the first two cylinders but has been delayed from the third cylinder onwards.

"I received the subsidy amount promptly for the first two cylinders. I thought the new system was effective and consumer-friendly. Then the problems started for me. I am not getting the subsidy amount from the third cylinder. I received the fifth cylinder last week and am awaiting subsidy for the previous three cylinders.

How can the system be so faulty? Officials and gas agencies are not in a position to clarify whether it was due to a technical glitch or any other reason," said Ms D. Hemalatha, an LPG consumer from  Musheerabad.

Next: Not enough banks in rural areas to credit subsidy

Not enough banks in rural areas to credit subsidy

Hyderabad: Even though the pilot project for Aadhaar-LPG linkage has proved to be a disaster in urban districts, it has been extended to all districts from January 1.

A majority of consumers in rural and remote districts are semi-literate or illiterate, with little or no awareness about Aadhaar and bank accounts and the need to link them to get the subsidy. There aren’t enough banks in rural areas and consumers have to travel up to 20 km to claim the subsidy.

Anantapur district has 5,84,396 consumers. Only 6.55 per cent have completed seeding with Aadhaar and banks. Consu-mers complained that they are getting messages about transfer of subsidy into banks in which they do not have accounts.

In Krishna district, out of total 10,98,144 consumers, only 5,41,594 have seeded their Aadhaar and bank accounts. Over five lakh consumers risk losing subsidy.

In Adilabad district, the situation is somewhat better with officials achieving 90 per cent seeding with Aadhaar. The district administration has linked Aadhaar with 3,05,700 connections out of 3,40,240. But, the bank linkage is only 72 per cent.

Warangal district has 4.25 lakh LPG consumers and 30-40 per cent have the Aadhaar and bank linkage. In Niza-mabad, of 3,78,746 gas connections, around 2,60,046 (68.66 per cent) connections are seeded with Aadhaar.

In Visakhapatnam district, nearly 75 per cent of LPG connections still have to be linked with Aadhaar and bank accounts. Only 2.05 lakh out of a total of 8.23 lakh connections have been seeded so far. In Chittoor, of 7,06,959 consumers, about 5.67 lakh have seeded with Aadhaar and 5.51 lakh seeded with banks. In Karimnagar, only 42 per cent have seeded the Aadhaar numbers.

Next: Graft to rise with cylinders

Graft to rise with cylinders

Hyderabad: It is being feared that the Centre’s decision to increase the quota for subsidised LPG cylinders from 9 to 12 per year might fuel black marketing of cylinders in the state.

With just about two months left to utilise the additional three cylinders within the deadline of March 31, many feel that the additional cylinders will be diverted to the black market as majority of consumers have not even utilised six cylinders so far since April 1, 2013, when the quota came into force.

Consumers say that if the Centre really wanted to resolve the problems being faced by LPG consumers, it should review the “faulty Aadhaar-LPG linkage system”, which is forcing consumers to shell out over Rs 1,300 to obtain a cylinder against the earlier price of Rs 412.50.

As per a study conducted by the Civil Supplies department, the average household consumption of LPG in the state is only 5.25 cylinders a year. Union Minister of State for Petroleum, Ms Panabaka Lakshmi, recently said at a press conference that the average household consumption at the national level was only 6.5 cylinders per year.

The state has 1.2 crore domestic LPG connections. Of them, 40 lakh are “Deepam” connection holders. Deepam connections are being issued since 1999 for women from Below Poverty Line (BPL) and the deposit amount of Rs 1,000 to obtain connections is borne by the state government.

The average consumption of Deepam consumers is even lower, at just three cylinders per year, as BPL families in rural areas find the cylinders too expensive and are shifting back to PDS kerosene and wood for cooking.

This has come as a blessing in disguise for black-marketeers to divert the unused cylinders to the black market and sell it at open market rates. “There is large scale diversion of cylinders to the black market with regard to Deepam connections. BPL families are being lured by other category consumers and commercial establishments to book their full quota of cylinders.

They purchase cylinders for Rs 800 from Deepam consumers against the market price of Rs 1,300. In this way, Deepam consumers make up to Rs 450 on each cylinder. The increase in quota will further fuel black-marketing in the state," said Dr P. Venkateshwar Rao, president, AP LPG Dealers' Association.

The increase in quota will also prompt gas dealers to lure all categories of consumers to book their full quota of cylinders and divert them to the black market and share the commission proportionately.

"There is no demand from consumers to increase the quota from nine to 12 cylinders, barring a few households with big families or joint families.

Consumers are facing troubles due to non-receipt of subsidy even after linking Aadhaar and bank accounts. The government should try to address the problem, which will bring relief to over 80 per cent of the consumers, who consume less than nine cylinders a year," said Mr D. Muralidhar Rao, a consumer.