Direct cash transfer not easy to implement: Petroleum ministry

Oil secretary refers to the low penetration of Aadhaar in the country

PTI | December 11, 2012



Weeks ahead of rollout of the direct cash subsidy transfer scheme, the petroleum ministry on Tuesday said the plan will not be easy to implement because of the low base of people with the unique identity Aadhaar cards. The government has identified 51 districts for the rollout of the scheme in the first phase beginning January 1.

Speaking at the 11th Petro India Conference organised by India Energy Forum and Observer Research Foundation, Oil Secretary GC Chaturvedi said direct cash transfer is "a very good concept as will check a lot of pilferage that is currently taking place in marketing of cooking gas (LPG)."

The scheme involves government transferring cash subsidy of Rs520.50 in bank accounts of LPG consumers and asking them to buy their LPG at market price of Rs931 per cylinder. Presently, oil companies sell LPG at subsidised rates of Rs410.50 per cylinder in Delhi and the difference between the cost and price realised is made good by subsidy doleout to them.

This has led to subsidised LPG being diverted to unintended use like commercial establishments who are otherwise supposed to buy gas at market price. "But the cash transfer is not easy as Aadhar penetration is very low. Only 20 crore population has been enrolled for Aadhaar out of the population of 120 crore," he said. "Rolling out direct cash transfer in districts Aadhaar penetration of less than 80-90% will be difficult. We cannot make Aadhaar for cash transfers as the basis in such places."

He said the direct cash transfer for LPG will be first implemented in 20 districts and the remaining 31 districts will be covered in February or March. "Earlier UIDAI had said they will reach 80% penetration in the 31 districts by April but now they say they will expedite the process, so may be in February can be launch the scheme in those districts," he said.

Sources in the petroleum ministry said another hinderance in the rollout of direct cash subsidy transfer scheme is that less than half of the beneficiaries currently have bank accounts. Absence of bank branches in key locations in the districts is one of the reasons for the beneficiaries not having bank accounts.

Also, before issuing LPG subsidy, consumers who hold more than one LPG connection would have to be identified. While it is possible to identify consumers with more than one connection with the same oil company, it is difficult to trace ones who have multiple connections from different companies.

The government had in September decided to restrict supply of subsidised LPG to six cylinders per household in a year. Any requirement above that would have to be purchased at market price.

Comments

 

Other News

‘Oral cancer deaths in India cause productivity loss of 0.18% GDP’

A first-of-its-kind study on the economic loss due to premature death from oral cancer in India by the Tata Memorial Centre has found that this form of cancer has a premature mortality rate of 75.6% (34 premature events / 45 total events) resulting in productivity loss of approximately $5.6 billion in 2022

Days of Reading: Upendra Baxi recalls works that shaped his youth

Of Law and Life Upendra Baxi in Conversation with Arvind Narrain, Lawrence Liang, Sitharamam Kakarala, and Sruti Chaganti Orient BlackSwan, Rs 2,310

Voting by tribal communities blossoms as ECI’s efforts bear fruit

The efforts made by the Election Commission of India (ECI), over last two years, for inclusion of Particularly Vulnerable Tribal Groups (PVTG) communities and other tribal groups in the electoral process have borne fruit with scenes of tribal groups in various states/UTs participating enthusiastically in t

GST revenue for April 2024 at a new high

The gross Goods and Services Tax (GST) collections hit a record high in April 2024 at ₹2.10 lakh crore. This represents a significant 12.4% year-on-year growth, driven by a strong increase in domestic transactions (up 13.4%) and imports (up 8.3%). After accounting for refunds, the net GST

First Magahi novel presents a glimpse of Bihar bureaucracy a century ago

Fool Bahadur By Jayanath Pati (Translated by Abhay K.) Penguin Modern Classics, 112 pages, Rs 250 “Bab

Are EVs empowering India`s Green Transition?

Against the backdrop of the $3.5 billion Production-Linked Incentive (PLI) scheme launched by the Government of India, sales of Electric Vehicles (EVs) are expected to grow at a CAGR of 35% by 2032. It is crucial to take into account the fact that 86% of EV sales in India were under the price bracket of $2

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter