Tuesday 21 January 2014

What is Direct Benefit Transfer of LPG (DBTL) scheme

Direct Benefit Transfer of LPG (DBTL) scheme
LPG is a clean fuel and hence the Government of India wanted to popularize the use of this fuel by subsidizing LPG for domestic use making it affordable for the consumer. However, due to LPG being subsidized, there is dual pricing in the market which has lead to unscrupulous elements misusing subsidized LPG for other than domestic purposes.
Government of India launched the Direct Benefit Transfer for LPG (DBTL) Scheme in 291 districts covering over 9 crore consumers.
The scheme has been launched in six phases
under the scheme Customers will have to pay the market price for the cylinder and the subsidy amount will be transferred to their bank account. Effectively, the government wants to provide your benefit in your account. which means subsidy directly reaches the intended beneficiary as the amount is credited in his bank account.
Once the scheme is launched in the district, customers who have not completed formalities for being cash transfer compliant will get 3 months to complete the formalities. During this period they will get cylinders at the subsidized price. But if they do not complete formalities to become Cash Transfer compliant (CTC) within the grace period, they will continue to get cylinders but they will have to pay the non subsidised price (market price) for the cylinder.

What needs to be done by the customer?
The customer needs to do the following:
1. Obtain the Aadhaar number
2. Get his Aadhaar number linked to his consumer number
3. Also link his Aadhaar number to his bank account

How it works?
The Government notifies the districts for the launch of DBTL scheme. The customers in the DBTL districts need to be Cash Transfer compliant (CTC) i.e. the customer has to obtain an Aadhaar number, get the Aadhaar linked to the bank account and also to his LPG consumer number.
On launch of the scheme, all Cash Transfer Compliant Customers will get a fixed advance amount when they book cylinder for the first time after the scheme is launched, presently this amount is Rs. 435/-. This advance is given so that the Customer does not have difficulty in paying for the cylinder at market price. This advance amount remains with the consumer till he surrenders the connection. The amount is recovered from the consumer at the time of surrender of connection.
On delivery of the cylinder, the consumer will also get the actual subsidy for that cylinder upto the capped quota of cylinders (which includes cylinders delivered to the consumer at subsidised price during the financial year). VAT applicable if any, will have to be borne by the consumer.
For details about banks listed on Aadhaar Payment Bridge, status of linkage of Aadhaar to your bank account and LPG consumer number, frequently asked questions about the scheme, please visit the following website: http://www.petroleum.nic.in/dbtl/

Aadhaar number is not required to avail LPG cylinders at non-subsidized rate. LPG consumers not desirous of availing subsidy on LPG are not required to furnish their Aadhaar numbers.

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