Direct benefit transfer of LPG subsidies launched in Mysore

Aadhaar-based direct benefit transfer (DBT) of LPG subsidies was launched in Mysore district on Monday.

The new transfer scheme which was scheduled to be launched on June 1 was advanced by a month due to the poll code that was in force in the district.

Despite the delayed launch, more than 1.9 lakh customers are yet to seed their bank accounts and LPG consumer numbers with Aadhaar, which is crucial for the DBT of LPG subsidies. However, a three-month grace period has been provided to streamline DBT, during which all the remaining beneficiaries will have to compulsorily seed their respective bank accounts and customer numbers.

If customers fail to seed them, they will have to shell out the full amount of Rs 900 per cylinder from October.

During the three-month period, customers who are yet to seed their accounts, can buy LPG cylinders at a subsidised rate. The customers who have completed the process will receive the subsidy amount of Rs 435 per cylinder. The subsidies, according to Unique Identification Authority of India (UIDAI), will be transferred within 24 hours after booking a cylinder.

When the cylinder is delivered by gas agencies, the customer will have to pay Rs 900 per cylinder, subsequent to the transfer of subsidy.

Aggressive campaign

General Manager of the Lead Bank, State Bank of Mysore, K Lakshmisha said that banks will aggressively campaign for the next 60 days to complete seeding of bank accounts and LPG customer numbers with Aadhaar.

Among the 5.18 lakh LPG customers, the accounts of 1.97 lakh customers have been mapped with the National Payment Corporation. Barring them, banks will dispatch letters to about three lakh customers in the district. “Around 2.69 lakh letters have been dispatched to customers on Monday,” Lakshmisha said.

Lead Bank Manager K Shivalingaiah said text messages will also be sent to customers to complete the seeding process. He said that the drop boxes have been kept at bank branches and LPG agencies to facilitate seeding have not been used by the consumers. The response for the drop boxes have been dismal.

During a video conference with district administration, UIDAI Secretary Neeraj Mittal advised officials to compile a list of all the beneficiaries of social security schemes in the district. This is in preparation for the second phase of DBT in the district.