New Delhi, May 15: The government will from June 1 roll out direct transfer of cash subsidy on cooking gas (LPG) in 20 districts as it looks to cut its subsidy outgo by up to Rs 10,000 crore annually by eliminating diversions.
Oil Minister M Veerappa Moily said 76 lakh consumers in 20 districts like Mysore, North Goa, Pondicherry, Mandi and Hyderabad, will get Rs 435 in their back accounts every time they book an LPG refill.
These consumers then will have to buy cooking gas at market price which is double the Rs 410.50 rate for a 14.2-kg bottle in Delhi.
Announcing the launch, Moily said the government intends to extend the scheme to rest of the country but refused to give timelines for the same.
“We are ready to launch the direct benefit transfer (DBT) scheme for LPG all over the country but we want to see the results of the roll-out in these 20 districts,” he said.
Moily said the 20 districts selected have high Aadhaar or unique identification number penetration. While as many as 89 per cent of the LPG consuming population in these districts have Aadhaar number, the government will give a three-month grace period to them to procure the UID number and seed it with their bank accounts where cash subsidy has to be transferred.
After three months, that is from September 1, only consumers having Aadhaar and banks accounts linked to them will get cash subsidy and the rest will have to buy LPG at market price, he said.
The government anticipates a saving of Rs 8,000 to 10,000 crore in LPG subsidy annually after the scheme is rolled out all over the country.
The massive KYC exercise to weed out duplicate and fictitious consumers have resulted in blocking of 63 lakh connections that alone will save about Rs 2,000 crore in subsidy.
