What is LPG Subsidy Scheme? “PAHAL” Scheme

What is LPG Subsidy

HEY all indians you check here lpg subsidy ………The DBTL scheme was actually launched on 1st June 2013 and it covered 291 districts.

As many customers faced problems in linking their Aadhar card, the Government launched the modified version of scheme keeping in mind the issues faced earlier. The new DBTL scheme was launched on 15th November 2014 for the 54 districts of the country.

For the remaining districts, the scheme has started on the first day of new year that is 1st January 2015.

Not only the government made some significant changes in the scheme, they renamed it to ” Pratyaksh Hanstantarit Labh or PAHAL“.

What is LPG subsidy?

Subsidized LPG is provided largely for domestic use(use in house), but institutional use is permitted for Government schools, hospitals, canteens, police stations, etc. Subsidized LPG cylinders are red in colour and contain 14.2kg of LPG, whereas commercial LPG cylinders are purple and contain 19kg of LPG.

Domestic Consumers are entitled to nine subsidised LPG cylinders.  The government will send the cooking-gas subsidy directly to the bank accounts of subscribers as  a part of extension of Direct Benefit Transfer(DBT). Annually, this would amount to about Rs 4,000 per year by the government to each household as a cash transfer……….

For example, Suppose i am a resident of one of the Districts where scheme was launched on 15th November 2014. Now from 15th November 2014 to 14th February is the time which will be called as Grace period. In this time period i will be eligible to get cylinder at the Subsidized rate but i need to join the scheme with in these three months.

Another scenario in the same example is that if i didn’t join the scheme till 14th February 2015. Now in this case i will enter into the parking period. The government is generous enough to give me extra three months(till 14th May 2015) but i will get the LPG at market price. Once i join the scheme before 14th May i will be considered as CTC by government and all the subsidy will be transferred to my account…………

.Overview of the Direct Benefit Transfer of LPG scheme is given below. More details can be found …………

  • Consumers will need a bank account to join the scheme and receive LPG subsidy
  • Domestic Consumers are entitled to 12 subsidised LPG cylinders in a financial year. Number of cylinders are counted  from 1 Apr  to next year 31 Mar.
  • Consumers will also get one time permanent advance in their bank account prior to buying the first market priced LPG cylinder
  • Consumers will receive subsidy in their bank account as per their entitlement of subsidized cylinders
  • For the 54 districts where the scheme was launched on 15 Nov 2014
    • Till consumers join the scheme they will get cylinders at Subsidized price for 3 months w.e.f 15.11.2014 till 14.02.2015.
    • Market price for next 3 months, but the subsidy due will be given to them if they join the scheme within these 3 months i,e till 14.05.2015
  • From  15.05.2015 all LPG consumers will get cylinders at market price and only those who join the scheme will receive one time permanent advance & subsidy from the date of joining
  • To join the scheme and receive subsidy Aadhaar is not required. Consumers can avail LPG subsidy even if they don’t have Aadhar……….How does Direct Benfit Transfer for LPG cylinder work Pricing under DBTL

    Currently, 12 cylinders are available to consumers at a subsidised rate. Any requirement beyond this will have to be purchased at the market price . The Centre had capped the supply of subsidised domestic cylinders to six cylinders a year for all domestic consumers effective from September 14, 2012. Later, the cap was increased to nine cylinders. And, just before general elections, it was raised to 12 cylinders a year.In the DBTL district(s),

    • A one-time Advance will be provided to every CTC consumer joining DBTL. The Advance will be notified, from time to time and will remain fixed for a financial year. It will remain with the consumer till the time of termination of connection, when it will be finally adjusted.
    • Domestic LPG cylinders will be sold to CTC LPG consumers at Market Determined Price from the date of launch of the scheme.
    • The total cash applicable on LPG cylinder will then be transferred to the CTC consumer for each subsidized cylinder delivered (up to the cap) as per his entitlement as shown in figure below
    LPG Cylinder subsidy

    LPG Cylinder subsidy

    • Prime Minister Narendra Modi’s office has fixed the subsidy on domestic LPG at Rs 568 per cylinder , to be borne equally by the government and national oil companies (NOCs) . The Prime Minister’s Office on October 22 also decided to keep the consumer price unchanged during the current fiscal year ending March 2015 after which the deliverable price could vary with the change in international price. The proposed fixed subsidy is higher than current under-recovery of Rs 416.35 per cylinder
    • From 1 Jan 2015 prices in few cities are as given below
      • In Delhi Subsidized cylinder costs Rs 417 while Non Subsidized cylinder is priced at Rs  708.50
      • In Kolkata Subsidized cylinder costs Rs 419 while Non Subsidized cylinder is priced at Rs 746.00
      • In Mumbai Subsidized cylinder costs Rs 452 while Non Subsidized cylinder is priced at Rs 725.50
      • In Chennai Subsidized cylinder costs Rs 404.5 while Non Subsidized cylinder is priced at Rs 705.00
      • In Bangalore urban cylinder costs Rs 425.00 while Non Subsidized cylinder is priced at Rs  737.00
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