Cash transfer for LPG to begin today in 54 districts

Permanent advance is paid in the bank account as soon as they book a cylinder

Update: 2014-11-15 01:43 GMT
Picture for representational purpose
New Delhi: The modified direct benefit transfer of LPG (DBTL)  is set to be relaunched from Saturday in 54 districts in the first phase. In the rest of the country, it will be implement from January 1.In the 54 districts covering 11 states, the scheme will cover 2.33 crore households. Currently, the Aadhaar generation level is 95 per cent in these districts.Under this, LPG consumers will start getting cash subsidy in their bank accounts so that they can buy LPG at market price.
 
After the NDA came to power the future of DBTL was in doubt. However, the new government decided to re-launch a modified version.Initially the DBTL sch-eme was launched on June 1, 2013 and finally covered 291 districts. “It required the consumer to mandatory have an Aadhaar number for availing LPG subsidy. The government has comprehensively reviewed the scheme and after examining the difficulties faced by the consumer substantively modified the scheme prior to launch,” said petroleum ministry. 
Consumers who had joined the scheme earlier and had received cash subsidy in their bank accounts do not need to do anything further.
 
As per the new scheme, consumers who affirm that they do not have Aadhaar number, can receive cash directly in their bank account without producing Aadhaar. However, as and when they get Aadhaar they may have to shift to Aadhaar based cash transfer.Consumers, who are not cash transfer compliant, will get a three month grace period during which they will receive the cylinders at subsidised rate.
 
After the grace period, they will get an additional period of three month as “parking period”.During the “parking period” they will have to buy cylinders at the market rate. If the consumer joins the scheme within the “parking period” the subsidy as per entitlement and consumption during “parking period” will be transferred to his or her bank account.
Under the scheme, permanent advance is paid in the bank account of consumers as soon as they make the first booking for a cylinder after joining the scheme, prior to the delivery.
 
This advance ensures that LPG consumers have extra cash to pay for the first LPG cylinder at market price.The permanent advance will be notified for the  consumers now joining the scheme separately.

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