PAHAL Scheme or Direct Benefit Transfer of LPG (DBTL) Scheme

On June 1, 2013, the government introduced the Direct Benefit Transfer of LPG (DBTL) or PAHAL (Pratyaksh Hanstantrit Labh) scheme, initially covering 291 districts. This scheme required consumers to have an Aadhaar number to receive LPG subsidies. After acknowledging the challenges faced by consumers, the government conducted a thorough review and made significant modifications to the scheme. The revamped version rolled out in 54 districts on November 15, 2014, in the first phase, and then it went nationwide on January 1, 2015.

About PAHAL Scheme

Aims to reduce diversion and eliminate duplicate or bogus LPG connections.
Under the PaHaL program, eligible consumers purchase LPG cylinders at market rates, and they receive the subsidy directly into their bank accounts.

Modified PAHAL Scheme

Options to receive LPG subsidy

Under the modified scheme, the LPG consumer can now receive subsidy in his bank account by two methods. Once a consumer joins the scheme and is ready to receive subsidy in their bank account, we’ll call them CTC (Cash Transfer Compliant).

The two options are:

Option I (Primary):

To join the scheme, consumers can obtain a form from their LPG distributor or download it from www.mylpg.in.
Please complete this form.
When filling out the form, consumers need to provide their Aadhaar number.
The Aadhaar number must be provided both to the LPG distributor and to the bank.

Option II (Secondary):

If someone using LPG doesn’t have an Aadhaar number, they can still receive their subsidy directly in their bank account without needing Aadhaar.
The updated scheme includes a new option to ensure that those without an Aadhaar number don’t have their LPG subsidy withheld.
Under this option, the consumer can either provide their bank details (like account holder name, account number, and IFSC code) to the LPG distributor for recording in the LPG database or give their LPG consumer ID (a 17-digit number) to their bank.
Those who don’t want the subsidy for LPG cylinders can simply choose to opt out of it.
More than 12,000 citizens have already chosen to voluntarily give up their subsidy, freeing up a significant amount to help those in need.
LPG consumers who were part of the earlier DBTL scheme by linking their Aadhaar to bank and LPG database don’t need to do anything new to receive their subsidy, as it will be transferred to their bank accounts based on their previous Aadhaar linking.
Consumers who were part of the earlier scheme cannot choose Option II mentioned above.

GiveItUp Campaign

Government of India heavily subsidizes domestic LPG, making each cylinder we use in our kitchen much cheaper thanks to this support.
However, this places a significant financial burden on the government, diverting funds that could otherwise be invested in important developmental projects.
Instead of offering universal subsidies, it’s crucial to target those who genuinely need assistance.
Many informed citizens, capable of paying full price, prefer not to rely on subsidies, understanding their contribution to the nation’s progress.
Spreading this message is essential, and to facilitate this, the Government has initiated the ‘#GiveItUp’ campaign.
This campaign encourages financially capable LPG users to voluntarily relinquish their subsidy, helping to redistribute resources where they are needed most.

Read Also: 30 years of LPG reforms in India