New Delhi, 14 November 2014

The Direct Benefit transfer of LPG(DBTL) scheme was launched on 1st June 2013 and finally covered 291 districts. It required the consumer to mandatorily 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. The modified Direct Benefit transfer of LPG (DBTL) 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.

-Consumers who had joined the scheme earlier and had received cash subsidy in their bank accounts do not need to do anything further. To confirm this, they should check their CTC (cash transfer compliant) status on www.MyLPG.in.

-The major changes in the modified scheme are designed to enhance consumer convenience and are as follows:

-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 CTC will get a 3 month Grace Period during which they will receive the cylinders at subsidised rate. After the Grace Period, they will get an additional period of 3 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 bank account.

-The 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 shall be notified for the consumers now joining the scheme separately.

-In the 54 Districts covering 11 states, the scheme will cover 2.33 crore households. Currently, the Aadhaar generation level is 95 % in these districts. The customers who have already given Aadhaar number to the LPG distributor but not to the bank are requested to link their Aadhaar numbers with their banks immediately. The balance LPG consumers who have not given their Aadhaar number to LPG distributor or to Banks must give their Aadhaar number to both if they have it. If they don’t have Aadhaar number, they need to give their bank account details to the OMC distributor or in the alternative they can give their 17 digit LPG ID to their banks if they are accepting it.

-DBTL is designed to ensure that the benefit meant for the genuine domestic customer reaches them directly and is not diverted. DBTL also ensures that public money is saved. All LPG customers are requested to immediately join the scheme as above.

-As part of the improvements to the scheme, consumers will now receive SMS at every stage of enrollment in the scheme. To avail of this feature all LPG consumers are requested to register their mobile number with their distributor if they have already not done so. They are also advised to receive cylinders only with cash memos to be assured of their cash transfer.

Salient Features/Timelines of the modified DBTL scheme (for 54 districts)

What if LPG consumer had joined the scheme earlier?

-LPG consumers who had joined the scheme earlier by linking their Aadhaar number in LPG and Bank database will get the cylinder at Market price w.e.f 15.11.2014 and the cash will be transferred into their bank account. They do not have to do anything further. They can check their CTC (cash transfer compliance) status on www.mylpg.in.

How to join the modified DBTL Scheme?

Option I (Primary) : LPG consumers who have an Aadhaar number must provide their Aadhaar number to LPG distributor using Form 2 and to Bank using Form 1. This is the preferred mode of joining the scheme.

Option II (Secondary) : If the LPG consumer does not have Aadhaar number, he can do one of the following:

a. Give Bank details to LPG distributor in Form 4

OR

b. Give 17 digit LPG ID to the Bank using Form 3.

What happens if the LPG Consumer joins the scheme or if he doesn’t join it?

-LPG consumers who join the scheme on 15th November 2014 onwards will get a one time permanent advance as notified, as soon as they book a cylinder after joining the scheme. LPG consumers who had already joined the scheme earlier and had received a permanent advance of Rs. 435/- will not receive any permanent advance again.

-All consumers who have joined the scheme till 15th November 2014 will start getting LPG cylinders at market price and cash in their bank accounts.

-Between 15th November 2014 and 14th February 2015 (three months), any LPG consumer who does not join the scheme will continue to get the cylinder at subsidized price as they are getting it today.

-Between 15th February 2015 and 14th May 2015 (three months), those LPG consumers who still do not join the scheme will start getting the cylinder at market price and cash admissible will be parked with the OMCs. If they join the scheme within this 3 month period, the parked cash would be sent to their bank account, else it will lapse.

-From 15th May 2015, consumers who have still not joined the scheme will get the cylinder at market price, and cash subsidy will not be admissible.

-Any consumer can join the scheme after 15th May 2015 and he/ she will get permanent advance and cash subsidy with prospective effect as per the entitlement.

LPG customers who do not wish to avail the LPG subsidy can choose to Opt out of subsidy. They can register and exercise this option on www.MyLPG.in. Around 9000 citizens have already voluntarily given up the LPG subsidy thereby freeing up crores of fund for their less privileged brethren.