Direct Benefit Transfer for LPG (DBTL) scheme


Direct Benefit Transfer for LPG consumer (DBTL) is the scheme launched by the Ministery of Petroleum & Natural  Gas on June1, 2013. It aimed to improve the subsidy administration of LPG across the country. The scheme has been introduced to curb such leakages and diversion so that subsidized LPG is available to the genuine users. Under the scheme, Consumers will have to pay the market price for the domestic cylinder and the subsidy amount will be transferred directly 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.
Objectives of the Scheme
(i)  DBTL scheme will ensure that there is a single pricing of the LPG cylinders across domestic LPG cylinder category thereby creating a disincentive for diversion since dual pricing of Domestic LPG cylinder category encourages diversion of subsidized LPG cylinders for unauthorized usage. Diversion of LPG cylinders for unauthorized usage leads to huge loss to the exchequer.
(ii) Subsidy disbursement will be better managed with a system based audit trail and transparency in fund transfer through direct transfer of Subsidy into the LPG consumers’ bank account.
(iii) DBTL will curb diversion of cylinders, leading to better availability of LPG cylinders for genuine users and prompt cylinder deliveries which will lead to higher satisfaction among beneficiaries as diversion of LPG cylinders to unauthorized channels mounts pressure on the overall supply chain of the LPG distribution network thus creating an artificial shortage of LPG cylinders.
(iv) DBTL scheme will ensure Aadhaar based subsidy transfer to weed out duplicate and ghost/fake connections as the LPG control order prohibits more than one LPG connection per household under PDS.
Salient Features of the DBTL Scheme
The following are the salient features of the scheme:
(i) All LPG consumers desirous of availing subsidy will have to first enroll with UIDAI to obtain their Aadhaar number.
(ii) To start receiving the subsidy directly into the bank account; consumers need to link their Aadhaar number to:
(a) LPG Consumer Number with Oil Marketing Company
(b) Bank account.
(iii) An LPG consumer who has linked his/her Aadhaar number to both LPG consumer number and to the bank account is called Cash Transfer Compliant (CTC) Consumer. LPG consumers can check for their CTC status on OMCs Transparency portal and their CTC status will be defined from the date the LPG consumer is reflected in Green color (both LPG and Bank linking) in OMCs transparency portal.
(iv)Consumer who has not linked his/her Aadhaar Number to either LPG Consumer Number or Bank Account or Both is called Non-CTC (Non Cash Transfer Compliant) Consumer.
(v) On launch of DBTL in a district, all CTC consumers will get the LPG cylinders at Market (non-subsidized) rate and the subsidy amount will be transferred directly into their bank accounts.
(vi) All CTC consumers will get a one-time advance in their bank account as soon as they book their first subsidized cylinder so that the consumer has advance money available to make the payment at the time of cylinder delivery at Market (non-subsidized) rate.
(vii) This advance will remain with consumer till the termination of connection. The advance for any year will be the average subsidy rate based on (fiscal subsidy plus under recovery) for 9 months starting from April of the previous financial year. For the financial year 2013-14, the permanent advance is Rs 435/-.
(viii) On delivery of first cylinder, the subsidy amount for the cylinder delivered will get credited in the consumer’s bank account.
(ix) Thereafter, subsidy eligible on each subsidized cylinder, up to the cap of 9 cylinders per financial year, will be directly transferred to the Aadhaar linked bank account of the LPG consumer.
(x)Non-CTC consumers will get a grace period of three (3) months to become CTC consumer. During this period they will continue to get the cylinders at subsidized rate just as they have been receiving before launch of DBTL scheme. However the number of subsidised cylinders would be limited to the cap of 9 cylinders per Financial Year.
(xi)At the end of grace period, LPG cylinders will be delivered to all domestic LPG consumers at market (non-subsidised) rate. However, the subsidy will be transferred only to CTC consumers. Other consumers i.e. non-CTC consumers will not be eligible to receive subsidy till the time they become CTC Consumers.
(xii)After the end of grace period, a non-CTC consumer (NCTC) as and when he links the Aadhaar number to bank account and in LPG database (i.e. become CTC consumer) will start receiving LPG subsidy from prospective effect (upto the balance of 9 subsidized cylinder in a Financial Year) and will also receive a one-time advance on booking of first cylinder after becoming CTC consumer.
(xiii) VAT applicable if any will have to be borne by the consumer.

Wednesday, 05th Feb 2014, 08:02:03 PM

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Bhaskar Chakraborty
Apr 29, 2017 05:59 AM