Soon, LPG subsidy will land in your bank account

It will be launched on pilot basis in three districts

Six nationalised banks in the State have recently informed the oil marketing companies (OMCs) their willingness to implement the proposed pilot project for Aadhar-based direct transfer of subsidy to LPG consumers.

The OMCs are awaiting clearance from the Centre to launch the pilot project.
The much-awaited launch of the pilot was delayed as the banks had sought more time in making their own preparations.

Some of the banks were averse to opening zero-balance Aadhar accounts for the project. Hence, the pilot, which was planned to be launched last month, was delayed.
Now, banks have started coming forward to take up the project. Other nationalised banks are expected to fall in line soon.

The six banks are: Syndicate bank, Canara bank, State Bank of Mysore, Punjab National Bank, Allahabad Bank and Indian Overseas Bank. The oil companies — Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited — are planning to directly transfer the subsidy amount of a domestic LPG cylinder to the Aadhar account of the customers.

The measure is aimed at preventing the misuse of cylinders. The customers will be charged the market price for the refill. Subsidy will be given to only six cylinders a year.
Official sources said the oil companies have completed all other preparations for the launch. The companies are now waiting for the Union Petroleum Ministry to issue a formal notification, making Aadhar numbers mandatory for obtaining refill cylinders in the notified areas.

​Identification, verification

As soon as the notification is issued, officials said, domestic LPG consumers in the notified areas will have to personally visit their respective LPG dealers and identify themselves by submitting their biometric details. The dealer will also verify the Aadhar number of
the customers.

The dealer will issue a letter to the consumer confirming that she/he is an LPG consumer. The consumer should open an Aadhar bank account using the letter in any of the nationalised banks.

A cut-off date will be fixed for the consumers to complete these processes. Only those who complete these processes will get LPG refill and the subsidy amount, officials pointed out.

The oil companies, sources said, have already given a detailed instruction to the LPG distributors in Mysore, Tumkur and Dharwad districts where the pilot will be launched in the State.

The Unique Identification Authority of India (UIDAI) will open a counter near all LPG distributors’ offices for on-the-spot enrolment of those who do not have Aadhar numbers. The distributors have been instructed to educate the consumers about the system over phone, sources said.