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PaHaL - DBTL Scheme

PaHaL (Pratyaksha Hastaantarit Laabh), the Direct Benefit Transfer scheme for LPG Subsidy (DBTL) is an ambitious scheme which was earlier launched on June 1, 2013 by the previous Government with the objective of giving cash subsidy on cooking gas and it covered 291 districts. The present government has comprehensively examined the PAHAL scheme and after reviewing the problems faced by the consumers, it modified the prior scheme and re-launched it in 54 districts on November 15, 2014 to cover 2.5 crore households.

The second phase of this revised scheme started on January 1, 2015 to cover all the districts of the country. Under the previous scheme, it was mandatory to have the Aadhar number for all consumers who want to receive the LPG subsidy. However, this was a big problem for consumers who did not have the Aadhar card, which meant that they could not avail the subsidy.

Features of LPG Subsidy Scheme:
  • This scheme will enable the LPG customers to get subsidy directly to their respective bank accounts.
  • You can link your aadhar card to the bank account to get the direct benefit of the subsidy. The govt has made another significant step by announcing that the the subsidy can also be availed without aadhar card also
  • As per this scheme the consumer who will avail this scheme to avail the subsidy directly to the bank account  will be referred as “Cash Transfer Compliant (CTC)”
  • The consumers will be offered Permanent Advance  once they join the PAHAL (DBTL) Scheme. The payment will be transferred directly to the bank account of consumers as soon as they make the first booking for a cylinder after joining the scheme.
Options to receive LPG subsidy:

Under the modified scheme, the LPG consumer can now receive subsidy in his bank account by two methods. Such a consumer will be called CTC (Cash Transfer Compliant) once he joins the scheme and is ready to receive subsidy in the bank account. The two options are:
Option I (Primary): Wherever Aadhaar number is available it will remain the medium of cash transfer. Thus, an LPG consumer who has an Aadhaar Number has to link it to the bank account number and to the LPG consumer number.
Option II (Secondary): If LPG consumer does not have an Aadhaar number, then he can directly receive subsidy in his bank account without the use of Aadhaar number. This option which has now been introduced in the modified scheme ensures that LPG subsidy is not denied to an LPG consumer on account of lack of Aadhaar number. In this option, either of the two options can be followed.
  • Consumer can present bank account information (bank account holder name /account number /IFSC code) to the LPG distributor for capture in LPG database
  • Present LPG consumer information (17 digit LPG consumer ID) to his bank

Benefits of PAHAL:
There are three bodies which are going to be benefited by the PAHAL scheme:
For LPG consumers: All consumers using LPG cylinders will get cash subsidy to buy 12 (subsidized LPG Cylinders applicable in a financial year) 14.2-kg cylinders or 34 5-kg refills. The amount of money which is equal to the difference between the present subsidised rate and the market price is automatically transferred to the bank account of the consumer, when he or she makes the first booking for a cylinder. However, this is possible only after joining the scheme. When the consumer takes the delivery of the cylinder, another advance subsidy is transferred to the bank account.
For Government: This scheme will reduce or prevent the unauthorised sale of LPG cylinders at higher rates. The purchase of multiple gas connections will be prevented. Accordingly, the subsidy burden for the Government will be reduced.
For oil marketing companies (OMC): The LPG gas distributors won't have much burden of sending the cylinders to the intermediate gas suppliers. They will be in direct contact with their consumers, thereby building a good customer relationship. Multiple unauthorized connections won't be provided. The OMCs will be able to ensure that the consumers receive the LPG gas at one fixed rate and do not have to stand in long queues if they had made the booking well in advance.

Pricing under PAHAL (DBTL):
In the PAHAL (DBTL) district(s), domestic LPG cylinders will be sold to CTC domestic LPG consumers at Market Determined Price (does not include subsidy) from the date of launch of the scheme.

Amount transferred to consumer:
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. 

Grace period:
Those consumers who are not yet in the CTC bracket will be given 3 months time from the date of launch of PAHAL to become CTC. During this period, such consumers will need to buy the LPG cylinders at the market rates but they will receive the subsidised amount in their bank account once they become CTC consumers.

Parking period:
After the grace period of three months, all non-CTC LPG consumers will get another three months time as Parking Period. In case a consumer does not become CTC during this period, the parked subsidised funds will lapse and consumer shall become ineligible to receive subsidies till the consumer becomes CTC. When non-CTC consumers become CTC after the parking period, they will get one time permanent advance and total cash subsidized cylinders in that financial year.

Permanent advance:
Once a consumer becomes a CTC after joining the PAHAl scheme, a one-time advance will be given to him or her. This is known as the permanent advance and will remain fixed for a financial year. This amount will remain with a CTC consumer till the time he has the gas connection. LPG consumers who have the permanent advance on a previous scale will not be paid for any extra payment on account of the revision in the permanent advance.

Things to remember:
  • All consumers need a bank account to join the scheme.
  • One time permanent advance will be received by the consumers in their bank account, before they buy the first market priced LPG cylinder
  • The subsidies will be debited to the consumers' bank account according to their entitlement of subsidized cylinders.
  • The consumers who have joined the scheme will get cylinders at subsidized price for three months from November 15, 2014 to February 14, 2015.
  • The consumers will get LPG cylinders at market price for the next three months, but the subsidy amount will be given back to them if they join this scheme before April 14, 2015.

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