- The prime aim of the DBTL was to make that all the consumers of LPG gas receive the benefit of subsidy straight into their bank accounts, abolishing any kind of mishandling of the funds during the procedure.
- This also guarantees that the tax we are paying in is not being misused in any way and it is providing straight benefits to consumers.
- To authenticate consumer information the government of India made it mandatory to link Aadhar for complete database and to promote digitalization.
- It is implemented by the ministry of petroleum and natural gas.
- Remove incentive for diversion and Weed out fake/duplicate connections
- Protect entitlement and ensure subsidy to the consumer.
- Improve the availability/deliver y of LPG cylinders for genuine users
- Allow Self Selection in subsidy.
Options to receive LPG subsidy:
Under the modified scheme, the LPG consumer can now receive subsidy in his bank account by two methods. Such a consumer will be called CTC (Cash Transfer Compliant) once he joins the scheme and is ready to receive subsidy in the bank account. The two options are:
- Option I (Primary): For joining the scheme, the consumers have to fill up a form available with distributors. The consumers need to provide their Aadhaar number to LPG distributor and to Bank.
- Option II (Secondary): If LPG consumer does not have an Aadhaar number, then he can directly receive subsidy in his bank account without the use of Aadhaar number. This option which has now been introduced in the modified scheme ensures that LPG subsidy is not denied to an LPG consumer on account of lack of Aadhaar number. In this option, either consumer can present bank account information (bank account holder name /account number /IFSC code) to the LPG distributor for capture in LPG database OR Present LPG consumer information (17 digit LPG consumer ID) to his bank.
- Consumers using LPG cylinders.
- Government due to reduced leakages. Public money will be saved.
- Oil marketing companies – as intermediaries are eliminated.
- Anyone who wishes to use the benefits under DBTL scheme is bound to have a bank account. The subsidy sum will be directly transferred to the bank account of that person.
- The LPG cylinder will be offered at the normal market price, along with the subsidy sent to the bank account. By this, it makes sure that more than pricing is eradicated and it is fair for everyone.
- This scheme also offers a one-time advance which will be transferred to the consumer’s account directly. The money will be sent before the consumers buy the cylinder from the market.
- The subsidy will be given on the basis on the number of subsidized cylinders a consumer is allowed to buy in a year.
- Consumers can choose whether to link their Aadhar number or their bank account for the gas connection.
- The consumers signing up for this scheme will be provided with an advance of INR 568, and the amount will be transferred directly into their bank account.
- Anyone who does not require the subsidy amount can voluntarily give it up and that amount will be given the people in need.
- The consumers can link their contact numbers with the gas agency to SMS updates on their phones about the booking.
- This scheme will also avoid the selling of illegal and unauthorized gas cylinders; this also increases the safety and reduces black market deals.
- This scheme also eradicates the practices where people have numerous gas connections. And every house can have a single gas connection, so that the other people in need can be treated fairly as well.
- This also gets rid of mediators, serving every consumer and saving money. Even the oil companies can save some amount by this.
- This also helps in agencies maintain a track of their customers, which will help them in servicing their customers better.
- Anyone who does not own a bank account will not be able to enjoy these benefits. This scheme inspires everyone to open bank accounts which will result in a cashless and better economy.