What is Direct Benefit Transfer of LPG scheme?

What is Direct Benefit Transfer of LPG scheme?

The Direct Benefit Transfer of LPG (DBTL) or PAHAL (Pratyaksh Hanstantrit Labh) scheme was initially introduced on June 1, 2013, and finally covered 291 districts. It required the consumer to necessarily have an Aadhaar number for availing LPG Subsidy. The government has comprehensively reviewed the scheme and after identifying the difficulties faced by the consumer substantively modified the scheme. The altered scheme is being re-launched in 54 districts on 15.11.2014 in the 1st Phase and in the rest of the country on 1.1.2015.

If the consumer or his/her spouse had taxable income of more than Ten lakhs during the previous financial year evaluated as per the Income Tax Act, 1961 the Government has taken a decision that the benefit of the LPG subsidy will not be available for LPG consumers. With the approach of faith in the citizens, this will be given effect to earlier on self-declaration basis while booking cylinders from January 2016 onwards.

Options to receive LPG subsidy

Under the altered scheme, the LPG consumer can now receive a subsidy in his bank account by two methods. Once he joins the scheme such a consumer will be called CTC (Cash Transfer Compliant) and is ready to take subsidy in the bank account. The two options are:

  1. Option I (Primary): The consumers need to provide their Aadhaar number to LPG distributor and to Bank. For taking up the scheme, the consumers have to fill up a form available with distributors and also on plugin www.mylpg.in.
  2. Option II (Secondary): In this option, either consumer can present bank account information (bank account holder name /account number /IFSC code) to the LPG distributor for capture in LPG. LPG consumers who do not wish to take the LPG subsidy for LPG cylinders can simply choose to opt to out of subsidy.
  3. If LPG consumer does not have an Aadhaar number, then he can directly receive a subsidy in his bank account without using Aadhaar number. This option which has now been launched in the modified scheme says that LPG subsidy is not denied to an LPG consumer on account of because of not having the Aadhaar number.

Domestic LPG Consumer who had already come earlier in DBTL scheme by linking their Aadhaar to bank and LPG database doesn’t need to take fresh action for receiving a subsidy, as their subsidy will be transferred to their bank accounts via Aadhaar based on the previous information. Such cash transfer compliance consumers cannot exercise Option II above. Consumers can check CTC (cash transfer compliance) status on portal www.mylpg.in.

Pricing under DBTL

Under DBTL, once a consumer started the scheme, he will get the cylinders at market price and will receive LPG subsidy directly in his bank account. A sum of Rs 568 will be paid in advance to the consumer, in the bank account, who now joins the scheme, as soon as she/he makes the first booking for a cylinder after joining the scheme to ensure that she/he has paid extra money for the first LPG cylinder at market price. This process is following for each subsidized cylinder delivered as per his/her order and selection.

To keep consumers know about their status in the scheme, consumers will receive an SMS at every level of the scheme. To avail this feature all LPG consumers are requested to register their mobile number with their distributor if they have not done so. They are also advised to receive cylinders only with cash memos to be assured of their subsidy transfer.

Grace Period

  • Non-CTC consumers will be allowed 3 months from the date of launch of DBTL to become CTC. During this period such consumers will receive their entitlement of subsidized cylinders at the then applicable subsidized retail selling price.
  • Between 1st January 2015 and 31st March 2015 (three months), any LPG consumer who does not start the scheme will get the cylinder at a subsidized price.
  • Between 1st April 2015 and 30th June 2015 (three months), those LPG consumers who still do not attach to the scheme will start getting the cylinder at market price and subsidy will be parked with the Oil Marketing Companies. As soon as they join the scheme within this 3 month period, the parked subsidy would be sent to their bank account, else it will withdraw.
  • From 1st July 2015, consumers who have still not started the scheme will get the cylinder at market price, but subsidy will not be admissible. The subsidy will be transferred only to the bank account of those consumers who have joined the scheme before 30th June 2015.
  • Any consumer Commencing the scheme after 30th June 2015 will get advance and subsidy with prospective effect.
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