Eight states, including Chhattisgarh, Haryana, Himachal Pradesh and Jharkhand, have agreed to implement direct benefit of transfer (DBT) scheme for kerosene across 26 districts.

The scheme will be implemented from April 1 and till then state governments will be consulted in the run-up to the scheme. Consumers in these districts will pay the un-subsidised price of kerosene at the time of purchase and subsequently the subsidy amount will be directly transferred to the bank account of the beneficiary.

“To avoid any inconvenience to the beneficiary through payment of un-subsidised price, subsidy shall be credited in advance during the initial purchase,” the Ministry of Petroleum and Natural Gas stated.

It said, the government has decided that states will be given a cash incentive of 75 per cent of subsidy savings during the first two years, 50 per cent in the third year and 25 per cent in he fourth year.