PAHAL (Direct Benefit Transfer for LPG) Scheme

PAHAL Scheme Latest News

The Indian government has deactivated more than 4 crore duplicate or inactive domestic LPG connections under its PAHAL direct benefit transfer scheme, the Petroleum Minister told parliament recently.

About PAHAL Scheme

• Pratyaksh Hanstantrit Labh/Direct Benefits Transfer For LPG (PAHAL) scheme, launched by the Ministry Of Petroleum and Natural Gas, is India’s Direct Benefit Transfer (DBT) system for LPG subsidies. 
• Instead of subsidized cylinders being delivered directly, the consumer pays the full market price for LPG and the government transfers the subsidy amount to the registered bank account.
• It covers over 17 crore LPG consumers nationwide, making it the largest cash transfer program globally.

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PAHAL Scheme Objectives

• Ensures transparency and eliminates intermediaries.
• Removing incentives for diversion.
• Protect the entitlement and ensure the payment of subsidy to the consumers.
• Improving the availability or delivery of LPG cylinders for genuine customers.
• Eliminating the fake or duplicate connections.
• Providing self-selection in subsidy.

PAHAL Scheme Eligibility

• The applicant must be an LPG user.
• The combined taxable income of the applicant and their spouse should not exceed ₹10,00,000 in the previous financial year, as per the Income Tax Act, 1961.

PAHAL Scheme Working

• The consumer books a gas cylinder at the market price.
• Once delivered, the government credits the subsidy amount directly into the linked bank account of the consumer.
• There are two types of consumers in the scheme:
• Primary Aadhaar-Based DBT (preferred): Aadhaar is linked with both the LPG consumer number and the bank account.
• Alternative (Non-Aadhaar-Based): Bank account is linked directly with the LPG consumer number if Aadhaar linking is not available.

Source: CNBC