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Kerosene subsidy will also be transferred directly into bank accounts from Apr 1

Kerosene subsidy will also be transferred directly into bank accounts from Apr 1

news January 2, 2016 6 Views

After the success of LPG subsidy directly transferring into userΓÇÕs bank account, the government is all set to launch a similar scheme for kerosene from April 1. Now, users will buy the cooking fuel at the market prices but the subsidy will directly get transferred into their bank accounts.

The cash subsidy will be equal to the difference between the market price which is around Rs.43 and current PDS price of Rs.12. The government subsidy in the financial year 2014-15 stood at about Rs.24, 799 crore.

As per the official statement: ΓÇ£Several state governments have come forward to implement direct benefit transfer (DBT) in kerosene in selected districtsΓÇÙ.

The scheme will be rolled out firstly in Chhattisgarh, Jharkhand, Haryana, Madhya Pradesh, Punjab and Rajasthan.

“To avoid any inconvenience to the beneficiary through payment of un-subsidized price, subsidy shall be credited to eligible beneficiaries in advance during the initial purchase,” it said.

According to National Sample Survey, total consumption of kerosene stood at 71.30 lakh kiloliters in the period 2011-1r, including both market and PDS kerosene.

Source: ET