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Direct Benefit Transfer of LPG (DBTL) Scheme

This topic covers about process and steps for direct benefit transfer of LPG scheme.

The Direct Benefit Transfer of LPG (DBTL) or PAHAL (Pratyaksh Hanstantrit Labh) scheme was earlier launched on June 1, 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. The modified 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.

As on Jan 1, 2015, the scheme covers over 15.3 crore consumers across 676 districts of the country. As part of the first phase, over 6.5 crore consumers ie. 43% have already joined the scheme and are receiving the subsidy in their bank account. As on 30.12.2014, an amount of Rs.624 Crore has been transferred to over 20 Lakh LPG consumers since the launch of the scheme on 15th November 2014.

Modified DBTL 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:

  1. Option I (Primary) : For joining the scheme, the consumers have to fill up a form available with distributors and also on www.mylpg.in. The consumers need to provide their Aadhaar number to LPG distributor and to Bank.
  2. 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 consumer can Present bank account information (bank account holder name /account number /IFSC code) to the LPG distributor for capture in LPG database OR Present LPG consumer information (17 digit LPG consumer ID) to his bank.

LPG consumers who do not wish to avail the LPG subsidy for LPG cylinders can simply choose to opt out of subsidy. Over 12000 citizens have already voluntarily given up subsidy freeing up crores of subsidy amount for their less privileged brethren.

LPG Consumers who are already CTC prior to launch on modified DBTL

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

Pricing under DBTL

Under DBTL, once a consumer joins 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 s/he makes the first booking for a cylinder after joining the scheme to ensure that s/he has extra money required to pay for the first LPG cylinder at market price. This is in addition to subsidy that is paid on each cylinder. This process is followed for each subsidized cylinder delivered (up to the cap) as per his/her entitlement.

To keep consumers informed about their status in the scheme, consumers will receive SMS at every stage in the scheme. To avail of 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 join the scheme will get the cylinder at subsidized price.

Between 1st April 2015 and 30th June 2015 (three months), those LPG consumers who still do not join 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 lapse.

From 1st July 2015, consumers who have still not joined the scheme will get the cylinder at market price, but subsidy will not be admissible. Subsidy will be transferred only to the bank account of those consumers who have joined the scheme prior to 30th June 2015.

Any consumer joining the scheme after 30th June 2015 will get permanent advance and subsidy with prospective effect.

Permanent Advance

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. Currently it is fixed as Rs 568. It will remain with the consumer till the time of termination of connection, when it will be finally adjusted. LPG consumers who were provided permanent advance on a previous scale will not be eligible for any differential payment on account of the revision in the permanent advance.

Coverage of districts under DBTL

The scheme is to be launched in two phases

Helplines

Oil Manufacturing companies - IOCL, HPCL, BPCL - 18002333555
UIDAI : 18003001947

For detailed information about PAHAL (DBTL), click here.

GiveItUp Campaign

Domestic LPG is heavily subsidized by the Government of India and every cylinder that we use in our kitchen carries a substantial subsidy. This translates to a huge annual subsidy burden on the Government, draining precious resources which otherwise could have been used in developmental activities. Subsidy on domestic LPG instead of being universal needs to meet the needs of the truly needy citizens. Fortunately, many able and aware citizens are not in favor of subsidies and would rather pay the full price for the products and, thereby they also make a personal contribution towards nation-building. There is a need to spread this message. Accordingly, the Government has launched the ‘#GiveItUp’ campaign which is aimed at motivating LPG users who can afford to pay the market price for LPG to voluntarily surrender their LPG subsidy.

For more information, visit http://www.givitup.in/.

Source : Ministry of Petroleum and Natural Gas

Benefit of LPG subsidy will not be available if the consumer or his/her spouse had taxable income of more than Rs Ten lakh in previous financial year

The Government has decided that the benefit of the LPG subsidy will not be available for LPG consumers if the consumer or his/her spouse had taxable income of more than Rs 10,00,000/- during the previous financial year computed as per the Income Tax Act, 1961. In keeping with the approach of trusting the citizens, this will be given effect to initially on self-declaration basis while booking cylinders from January 2016 onwards.

Source : PIB

Related resources

  1. FAQs on DBTL
3.06896551724
ssk Apr 29, 2016 08:01 AM

Dear sir,this is to inform you that I paid ₹690 towards the gas but I received only 120₹ in my account so I kindly request to u please in form u actual gas price &what is the subsidy amount to be deposited in account

Satyendra Kumar Gupta Jan 04, 2016 09:37 AM

Dear Sir,

My subsidy Amt. has not been transferred in my bank A/c, when I have received Msg. five day ago, I want to take directly my cylinder from godawn not though delivery person, because delivery person deduct the gas before the delivery. pls. advice the process.

Jyoti Manojkumar Kandoth Jan 02, 2016 11:07 AM

The subsidy system is ridiculous & irritiating. Why are we charged more in first place!!!!!??????

The system is irritating - NOT a good decision - not good for common people - sign of bad government

trivedi Nov 01, 2015 05:41 PM

sir,
to give up subsidy is foolishtnesh. govt is looting indian people. why govt want subsidy to be givenup by people. on the contrary clearly ceylinder cost should be rs. 275 per each cylinder to any one.

Dinesh Aug 14, 2015 11:20 AM

My LPG subsidy has not been deposited in my account one month ago. why

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