The scheme will pay the LPG subsidy to consumers directly to their bank accounts, using the Aadhaar platform.
The Chief Minister, on Saturday, launched an Aadhaar-based Direct Benefit Transfer Of LPG Subsidy (DBTL) scheme in Hyderabad, Ranga Reddy, Chittoor, East Godavari and Anantapur districts, at a function held in Indira Priyadarshini Hall, Public Gardens, Nampally, Hyderabad.
He said that the main objective of the program is to benefit the eligible and eliminate the benami. He said that the Indian government is spending, as subsidy for cooking gas, Rs. 55,000 crore in the country, and Rs. 5,200 crore in AP.
The CM directed all oil companies to speed up the synchronisation and ceding of Aadhar cards to bank accounts, in coordination with other departments. He reiterated his plea to the government of India to allot more gas and LPG to the state of Andhra Pradesh for faster development.
The online payment system eliminates benami accounts and colleges, and will save the state Rs. 300 crore. In the case of input subsidy, out of the released Rs. 1,800 crore, only Rs. 1,400 crore could distributed to all eligible farmers, and the rest (Rs. 400 crore) could not be distributed because of benamis and for want of bank accounts.
The CM said that AP is "no. 1" in the country as far as Aadhar cards are concerned.
7.70 crore individuals out of a total population of 8.47 crore (as per the 2011 census) enrolled, but cards were generated for only 70% of them. The CM said that once enrollments are done, benefits of welfare schemes can be synchronised through the Aadhar system.
The Union minister for Petroleum & Natural Gas said that the main objective of the DBTL scheme is to see that the benefits reach the common man and the poor. She said that 10 more districts will be covered in the second phase.
Officials explained that the scheme would benefit over 48.82 lakh customers in the five pilot districts, along with over 73 lakh customers in 18 districts over 8 states and 2 UTs across the country.
They said that the scheme would pay the LPG subsidy to consumers directly to their bank accounts, using the Aadhaar platform. Advance subsidy will be transferred to the bank accounts of all LPG customers of oil marketing companies in the public sector (IOCL/HPCL/BPCL).
Officials said that with today's launch, subsidies of Rs. 1,65,22,605 have been transferred to bank accounts of 37,983 customers all over India in 18 districts, and of Rs. 1,20,27,315 to accounts of 27,649 customers in Andhra Pradesh in 5 districts. They added that this now enables them to buy cylinders at market rates.
"This is a landmark in the evolution of the direct benefit transfer program, by using an array of technologies. It is perhaps a first of its kind anywhere in the world, considering the scale and diversity of the beneficiaries," they said.
Officials said DBTL scheme would prevent the diversion of cylinders, and ensure that benefits are transferred to the intended beneficiaries, thereby curbing leakage in the subsidy delivery system.
"By participating in this scheme, LPG consumers directly partake in nation-building, as the government can plough back resources saved through this scheme into other social sector programs.
"Under the scheme, all LPG consumers attached to LPG distributors in these 18 districts will be required to get an Aadhaar number, open a bank account with an Aadhaar number, and provide their respective Aadhaar numbers to the LPG distributors, to get their bank accounts linked to the LPG service.
Oil marketing companies in the public sector (IOCL/HPCL/BPCL) let customers check the status of the Aadhaar-LPG linkage, on their websites.
LPG consumers who have not completed the formalities so far are allowed a grace period of 3 months, i. e., from June 1, 2013, to August 31, 2013, to get themselves enrolled. After this period, consumers who haven't enrolled will need to buy LPG cylinders at market prices, without any subsidy.
The scheme has been launched in 18 districts, and will be subsequently launched in the rest of the country in a phased manner. (INN)