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PAHAL (Direct Benefit Transfer for LPG) Scheme) : In News

PAHAL (Direct Benefit Transfer for LPG) Scheme) : In News

The Indian government has deactivated more than 4 crore duplicate or inactive domestic LPG connections under its PAHAL direct benefit transfer scheme.

  • Pratyaksh Hanstantrit Labh/Direct Benefits Transfer For LPG (PAHAL) scheme, launched by the Ministry Of Petroleum and Natural Gas, is India’s Direct Benefit Transfer (DBT) system for LPG subsidies.
  • Instead of subsidized cylinders being delivered directly, the consumer pays the full market price for LPG and the government transfers the subsidy amount to the registered bank account.
  • It covers over 17 crore LPG consumers nationwide, making it the largest cash transfer program globally.
  • Objectives:
    • Ensures transparency and eliminates intermediaries.
    • Removing incentives for diversion.
    • Protect the entitlement and ensure the payment of subsidy to the consumers.
    • Improving the availability or delivery of LPG cylinders for genuine customers.
    • Eliminating the fake or duplicate connections.
    • Providing self-selection in subsidy.
  • Eligibility:
    • The applicant must be an LPG user.
    • The combined taxable income of the applicant and their spouse should not exceed ₹10,00,000 in the previous financial year, as per the Income Tax Act, 1961.
  • Working:
    • The consumer books a gas cylinder at the market price.
    • Once delivered, the government credits the subsidy amount directly into the linked bank account of the consumer.
  • There are two types of consumers in the scheme:
    • Primary Aadhaar-Based DBT (preferred): Aadhaar is linked with both the LPG consumer number and the bank account.
    • Alternative (Non-Aadhaar-Based): Bank account is linked directly with the LPG consumer number if Aadhaar linking is not available.