Direct Benefits Transfer for LPG (DBTL) Scheme

The Direct Benefits Transfer for LPG (DBTL) Scheme or the Pratyaksh Hanstantrit Labh (PAHAL) was launched on the 1st of July, 2011 by the Government of India. However, the Scheme was last revised in the year 2015. Domestic LPG consumers are required to link their Aadhaar Number and Bank Accounts with their LPG Connection/ Consumer ID as per the Scheme to avail the subsidy on domestic LPG cylinders.

The Scheme

The Direct Benefits Transfer for LPG (DBTL) Scheme or the Pratyaksh Hanstantrit Labh (PAHAL) is a government scheme where the subscribers get a direct subsidy amount on their LPG connection to their bank account. The Scheme was launched to span over 291 districts across the country and relaunched a year later with an addition of 54 districts. By the year 2015, the Scheme has managed to cover the entire nation. Currently, the Government directly transfers the cost of the subsidised LPG to consumers through their Aadhaar Card or Bank Account and now has over 15 Crore customers over 676 districts in total.

Initially, the LPG subsidy was available to all under the condition of having an Aadhaar. Recently, the Government started the Give It Up campaign where well-off citizens who do not require a subsidy, to give up their LPG subsidy and pay for the same at a market rate. The campaign witnessed over 10 million people from the working class giving up their LPG subsidies. The amount the Government saved through the campaign was used to fund LPG connections for families under the poverty line in several backward states. However, if a consumer or their spouse earns more than INR 10 Lakhs which is taxable, the individual will not be eligible for an LPG subsidy.

Objectives of the Scheme

The following are the primary objectives of the Direct Benefits Transfer for LPG (DBTL) Scheme.

To remove the incentive for diversion.
To protect the entitlement of subsidy and to ensure the same to the consumer.
To eliminate fake/ duplicate LPG connections.
To improve the availability or delivery of LPG cylinders to genuine consumers.
To allow self-selection in terms of LPG subsidy.

Working of the Scheme

The Direct Benefits Transfer for LPG (DBTL) Scheme/ Pratyaksh Hanstantrit Labh (PAHAL) is implemented by oil marketing companies (OMC) with the help of its network of LPG distributors who, in turn, constitute the interface with LPG consumers. An LPG consumer database that includes information such as the particulars of the domestic LPG consumer, unique LPG ID, Name, Address, Date of Birth, Bank Account Details and Aadhaar number is maintained as per the Scheme. This database would depend on the area for distributorship and would be regularly synchronised with the same to the central system maintained by OMCs. The distributors deliver LPG cylinders to consumers as a response to their requests at market prices and would upload proof of receipt by the consumer. This would indicate completion of a transaction in the central system. The OMC would initiate the process for reimbursement of subsidy to the consumer. These companies send out a notification to the sponsor bank and then, to the National Payment Corporation of India (NPCI) which is an enabled payment platform for crediting the required amount to the bank account of the LPG consumer. The central system receives information regarding the transfer of the subsidy. The OMC would then claim the subsidy with the Government to initiate the reimbursement.

Options for DBT

There are majorly two methods that the Government has offered for customers to receive LPG subsidies.

Option 1: When an individual has an Aadhaar card, the same will remain as the medium of the subsidy transfer to the consumer. Therefore, an LPG consumer who has an Aadhaar must link it to the bank account and the LPG Consumer Number. The consumer would be called Cash Transfer Compliant (CTC). The CTC has to share their Aadhaar card details with the LPG distributor. Then, the customer will receive the subsidy amount directly to their bank account.
Option 2: This option is for those customers that do not have an Aadhaar. Initially, it was mandatory for a subscriber to have an Aadhaar card to receive the LPG subsidy; however, the Government has now removed that restriction. Now, for individuals without an Aadhaar card, they are required to share their bank account details such as account number, bank branch and IFSC code with the LPG distributor. Another option is to submit their 17-digit LPG Consumer Number with their relevant bank. By doing so, the individual will receive the LPG subsidy depending on the requirement on a monthly or quarterly basis.

Individuals who have already linked their Aadhaar to their bank account when applying for the LPG subsidy are not required to make a fresh application for the modified option to receive the subsidy.

Permanent Advance

For consumers who look forward to availing the LPG subsidy, a one-time permanent advance will be credited to their account. This amount will cover up the cost of the LPG subsidy for the initial month. Once the advance payment is made, the CTC will receive an intimation on their registered mobile number stating the same. For this, a consumer is required to submit their registered mobile number linked with the LPG distributor.

Linking Aadhaar to LPG Connection

There are various ways to link Aadhaar to your LPG connection. There are three prominent LPG distributors across the country namely HP Gas, Bharatgas, and Indane. The following are the steps to link one's Aadhaar to their LPG connection from these major gas distributors. Aadhaar may be linked with one's LPG connection in the following ways.

Submission of Application Form to the Distributor

Download, print and complete the form from the respective official LPG connection website.
Visit the nearest LPG distributor and submit the application.
The application may be sent to the required office via post as well.

Via Call Centre

An individual's Aadhaar may be linked to their LPG connection by a simple call to 18000-2333-555. The operator would guide the individual on how to go about the entire process.

Via Post

Download, print and complete the form from the relevant LPG website with all the required information. Enclose the related documents for proof of identity like Driving Licence, Electricity Bill or Passport along with the application form. Send the duly-filled Form 2 along with valid identity proof via post. The addresses for the LPG head offices are available on the appropriate company's official website.

Via IVRS

The subscriber may contact the respective LPG connection call centre and link their Aadhaar via Interactive Voice Response System (IVRS). Every district has a different IVRS and consumers may attain the number for their district from the list provided by the company.