Mysore LPG consumers to get subsidy directly

The Unique Identification Authority of India (UIDAI) will take up the implementation of the innovative direct transfer of subsidy scheme on a pilot basis in Mysore from the second week of this month.

The UIDAI has informed all banks that it will start crediting the subsidy amount to the beneficiaries’ bank accounts online with respect to 30 LPG distributors in Mysore city, Chairperson of the State-Level Bankers’ Committee M G Sanghvi said here on Wednesday.

Addressing the 122nd SLBC meeting, he said the scheme is scheduled to be extended to the entire Mysore district by January 2013.

It is being implemented based on Aadhar-enabled payment system, he added.

State-owned oil companies – IOC, BP and HP – have already implemented a project in some pockets of Mysore wherein LPG domestic cylinders are being supplied after verifying biometric details of the consumers.

Biometric details of consumers are stored in an electronic hand-held machine. Cylinders are delivered at the consumers’ doorsteps after verifying their authenticity.

Under direct transfer of subsidy scheme, the oil companies have planned to connect the LPG consumer database to the Aadhar numbers. The LPG distributors will charge the full cost (market rate) of cylinder from the consumers at the time of delivery.

As soon as the delivery is made, the subsidy amount automatically gets credited to the consumers’ bank account.

Sanghvi, who is also the CMD of Syndicate Bank, said that the State government also intends to take up disbursement under social security pensions, MGNREGS, housing schemes and distribution of scholarship under Aadhar-enabled service delivery on pilot basis in Mysore and Tumkur. Aadhar enrolment is about 95 per cent in these districts.

Chief Secretary S V Ranganath asked banks to inform about the current status of their preparedness to take up Aadhar-enabled opening of accounts and disbursements of benefits.

Banks should ensure that smooth sharing of data among them so that Aadhar-enabled direct transfer of subsidy scheme can be rolled out.

Ranganath also expressed concern over decreasing credit-deposit (CD) ratio of the State. The CD ratio (it is a ratio of the credit extended to the total deposits received by the banks) was 80.4 per cent in June  2010. But now it has nosedived to 74.15 per cent.

“It is a matter of concern. Karnataka is competing with other States. The CD ratio of States like Tamil Nadu, Andhra Pradesh and Kerala is much higher,” he stated.

He also said lending to the priority sector has also come down. Though the total lending to the priority sector in the fiscal 2011-12 was Rs 55,232 crore against the estimated Rs 48,212 crore, the lending for the current fiscal is fixed
at Rs 56,000 crore.