FM ask banks to gear up for LPG subsidy rollout

lpg subsidy to adhar

Finance Minister P Chidambaram today asked banks to gear up for the rollout of direct cash subsidy scheme to cooking gas (LPG) consumers throughout the country.

 “I have asked them (bankers) to get ready for the rollout of LPG for the whole country,” Chidambaram told reporters after a meeting with senior PSU bankers here. 

As a pilot project, the government has decided to give cash subsidy to LPG consumers under its ambitious Direct Benefit Transfer (DBT) scheme soon, and will cover 20 districts by May 15. 

LPG consumers will get about Rs 4,000 per annum in cash from the government, and they will have to then buy LPG at market price of Rs 901.50 per 14.2-kg cylinder. 

Currently, each consumer is entitled to 9 cylinders of 14.2-kg each at subsidized price of Rs 410.50. On each of this cylinder the government bears a subsidy Rs 435.

 There are about 14 crore LPG consumers in the country. Regarding the second phase of DBT scheme to be launched from July in 78 districts, Chidambaram said: “They (bankers) have all said that they will be ready in the 78 districts”.

 The Planning Commission would be holding meetings with the 78 district collectors.

 “We have said the lead bank managers of 78 districts will also attend the meeting,” the Finance Minister said.

 The government has already capped the number of subsidized cylinders at six per household per year, and beyond that a consumer has to pay the market price. However, some state governments are providing more subsidized cylinders and bearing the burden themselves.

 The government expects that the DBT will eliminate all ghost LPG connections and diversion of cylinders.

 In the first phase of DBT that started in January, 43 districts are being covered.

 Under the DBT scheme, subsidies and other benefits are transferred directly into the Aadhaar linked bank account of the beneficiary.

Get free important share market ideas on stocks & nifty tips chart setups, analysis for the upcoming session, and more by joining the below link: Stock Tips

Have you any questions/feedback about this article? Please leave your queries in the comment box for answers.

Disclaimer: The information provided on this website, including but not limited to stock, commodity, and forex trading tips, technical analysis, and research reports, is solely for educational and informational purposes. It should not be considered as financial advice or a recommendation to engage in any trading activity. Trading in stocks, commodities, and forex involves substantial risks, and you should carefully consider your financial situation and consult with a professional advisor before making any trading decisions. and its authors do not guarantee the accuracy, completeness, or reliability of the information provided, and shall not be held responsible for any losses or damages incurred as a result of using or relying on such information. Trading in the financial markets is subject to market risks, and past performance is not indicative of future results. By accessing and using this website, you acknowledge and agree to the terms of this disclaimer.

Previous ArticleNext Article
The Moneymunch editorial staff is a team of experienced financial writers and analysts with over a decade of experience in the financial markets. They have previously contributed to popular financial blogs and newspapers, and are passionate about providing accurate and up-to-date information to help both investors and traders make informed decisions. Trust the Moneymunch editorial staff to provide reliable and effective financial advice that can help you achieve your financial goals.

Write a Comment

Comment Policy: We love comments and appreciate the time that readers spend to share ideas and give feedback. However, all comments are manually moderated and those deemed to be spam or solely promotional will be deleted. Your email address will not be published. Required fields are marked *