Volume 4, Issue 1 (January, 2015) Online ISSN-2320-0073
47
Available online on www.abhinavjournal.com
Published by: Abhinav Publication
Abhinav International Monthly Refereed Journal of Research in
Management & Technology
DIRECT BENEFIT TRANSFER SCHEME: ISSUES AND
CHALLENGES
Dr. Pandurang Korde
Associate Professor, Hutatma Rajgurunagar College, India
Email : [email protected]
ABSTRACT
"A smart delivery mechanism will reach the people of India. The consumers will get hassle-free service
and at the same time, government would save on subsidies,"
The Narendra Modi-led government has relaunched DBTL in 54 districts since November 15. The
scheme has been extended to the entire country by January 1.
How will it work: a consumer's account would be credited with Rs.568 as one-time advance, while he
books his first refill starting January 1. Post the one-time advance, every time a refill is delivered the
subsidy amount will be credited to the bank account linked with LPG connection. The mechanism
would be similar to consumers of Indane, Bharat Gas or HP Gas.
Keywords: Direct Benefit Transfer Scheme; Subsidy Reduction
INTRODUCTION
On the New Year day, the government unveiled world's largest direct subsidy roll out scheme - Direct
Benefit Transfer for LPG consumer (DBTL) - across all the 676 districts in the country covering 15.3
domestic cooking gas consumers. The scheme is aimed at an efficient subsidy delivery mechanism to
the targeted consumer curbing leakages.
"A smart delivery mechanism will reach the people of India. The consumers will get hassle-free
service and at the same time, government would save on subsidies,"
The Narendra Modi-led government has relaunched DBTL in 54 districts since November 15. The
scheme has been extended to the entire country by January 1.
How will it work: a consumer's account would be credited with Rs.568 as one-time advance, while he
books his first refill starting January 1. Post the one-time advance, every time a refill is delivered the
subsidy amount will be credited to the bank account linked with LPG connection. The mechanism
would be similar to consumers of Indane, Bharat Gas or HP Gas.
For instance, in the national capital, after the one-time advance of Rs.568, consumer's account would
be credited with another Rs.235.91 (which changes every month) for every domestic refill delivered.
He will have to shell out another Rs.417 / cylinder from his pocket and pay Rs.652.91 to the cylinder
delivery person. This will be valid for 12 subsidised refill quota for every consumer. The consumers
need to register bank account with dealer, Aadhar is not mandatory.
In the pilot scheme rolled out in 54 districts since November 15, oil marketing companies -IOC, HPCL
and BPCL - have credited Rs.590 crore to consumers' accounts till December 29,2014. Every day,
nearly 30-35 million domestic refills are being delivered across the country This takes the total count
of domestic cylinders delivered in a year to about 100 crore. Nearly 99.67% of total domestic con-
sumers are within the subsidised limit of 12 refills every financial year.
