Starting June 1, cooking gas (LPG) consumers in 18 districts will get Rs 435 in their bank accounts when they book an LPG cylinder, as the Centre rolls out its ambitious direct benefits transfer programme to cut its fuel subsidy.
The scheme was to be rolled out in 20 districts initially, but the launch in Mysore in Karnataka and Mandi in Himachal Pradesh has been put off by a month due to Assembly and Parliamentary byelections, sources said.
Oil Minister M Veerappa Moily will launch the scheme in Tumkur in Karnataka on June 1 while Minister of State for Petroleum and Natural Gas Lakshmi Panabaka will simultaneously kick off the scheme in Hyderabad, the capital of her home state Andhra Pradesh.
Sources said that after the launch of the scheme, consumers in 18 districts like North Goa and Pondicherry will get Rs 435 in their bank accounts every time they book an LPG refill. These consumers then will have to buy cooking gas at market price, which is double the Rs 410.50 rate for a 14.2-kg cylinder in Delhi.
The government intends to extend the scheme to the rest of the country before the end of the year, but wants to see results in the 20 districts first.
While as many as 89 per cent of the LPG-consuming population in these districts have Aadhaar numbers, the Centre will give a three-month grace period to the rest to procure the UID number and synchronise it with their bank accounts.