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Linking Aadhar with LPG subsidy: PAHAL Scheme

Pahal (DBTL) Consumers Scheme

This Scheme was launched by Union Government, Ministry of Petroleum and Natural Gas in 2013 to provide benefit to the consumers by linking Aadhar cards with their LPG connection so that they can get the subsidy amount direct in their banks.

Objectives

  • Benefits Transfer is to ensure that benefits go to individuals’ bank accounts electronically.
  • Minimising tiers involved in fund flow thereby reducing delay in payment.
  • Ensuring accurate targeting of the beneficiary and curbing pilferage and duplication.

Eligibility

Every Indian household having Aadhar Card and a Gas connection gets subsidy on purchase of gas cylinders.

Benefits

  • Middlemen will be eliminated. Hence leakages will be reduced.
  • As Aadhar card is based on biometric identification, fake & duplicate beneficiaries will be eliminated.
  • DBT scheme allows time-bound transfers hence avoids delays in transferring money, which is one of the biggest problems beneficiaries are facing.
  • Eliminates intermediaries and rents for ‘fair price shops’ because subsidies and benefits of welfare schemes are transferred directly.
  • Transparency in the distribution of benefits.
  • As everyone can purchase goods at market price, there will be healthy competition between the sellers in the market.
  • It encourages people to have bank account.
  • The problem of food grains storage and spoilage in the process can be eliminated.

How to Apply

Consumers can receive subsidy in their bank accounts by two methods-

  • Option 1 (Primary)– LPG consumer who has a bank account linked with Aadhar number can get the subsidy directly in their bank account
  • Option 2 (Secondary) if a consumer does not have an Aadhar number then he may get the subsidy in their bank account by linking bank account directly with LPG connection.

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