PAHAL Scheme, On June 1, 2013, the government introduced the Direct Benefits Transfer for LPG (DBTL) program, also known as PAHAL (Pratyaksh Hanstantrit Labh), for LPG users throughout India. Customers must have an Aadhaar number in order to participate in this plan and receive the LPG subsidy. Following an evaluation of the program and an analysis of the challenges encountered by the clients, the government made adjustments and relaunched it on November 15, 2014.
Consumers receive the subsidies straight into their bank accounts after paying the market price for the residential cylinder. To address the issues of weak accountability, which led to subpar customer service and diversions that caused LPG subsidies to leak, the Ministry of Petroleum and Natural Gas launched the PAHAL (DBTL) program. Reducing the diversion of subsidised LPG is the primary goal of the PAHAL (DBTL) project.
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What is the PAHAL Scheme
The government was forced to pay subsidies for unauthorised users since domestically subsidised LPG was priced below the market price, leading to illegal diversions and commercial use of petrol. The PAHAL (DBTL) program ensures that the subsidy is provided to eligible domestic customers directly, bypassing any middlemen. The public saves money since diversion is removed.
Under the PAHAL (DBTL) scheme, each LPG customer must link their Aadhaar number to the LPG and bank account databases. Once their Aadhaar number has been connected, the customers’ subsidy will be sent into their bank accounts in line with the delivery of LPG cylinders. If a customer does not have an Aadhaar number, they can link their bank account to the LPG database and receive a subsidy directly in their bank account. Cash Transfer Compliant (CTC) users are those who have signed up for the PAHAL (DBTL) program by linking their bank account to the LPG database or their Aadhaar number to both databases.
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Objectives of the PAHAL (DBTL) Scheme
The following are the goals of the PAHAL (DBTL) scheme:
- Eliminating diversionary incentives.
- Preserve the right and guarantee that consumers receive their subsidies.
- Enhancing LPG cylinder delivery or availability for actual clients.
- Removing any phoney or redundant connections.
- Allowing for subsidised self-selection.
Benefits of PAHAL (DBTL) Scheme
The Indian government, oil marketing companies (OMC), and consumers all gain a lot from the PAHAL (DBTL) program. The following are the advantages:
This program offers the Indian government the following advantages:
- By eliminating supply chain leaks and unauthorised use, the implementation of this program will lessen the burden of subsidies.
- letting customers choose not to get subsidies.
- utilising Aadhaar-based de-duplication to reduce many connections.
- enhancement of the provision of public services.
This program offers the following advantages to LPG consumers:
- Their bank account will automatically receive the LPG subsidy.
- Since there is no longer any motivation to divert, the rights of customers are protected.
- expansion of the market’s supply of new LPG connections.
- decrease in subsidy backlogs as a result of less diversion.
This plan offers the Oil Marketing Companies (OMC) the following advantages:
- lower administrative costs as a result of Less enforcement.
- decrease in complaints about delayed deliveries, illegal use, or diversion.
- Subsidy audit by the public.
- allowing client relationship management to receive focus.
- removal of several phoney clients and links.
- reduced product shortage, which led to better import management.
What Are the Features of the PAHAL (DBTL) Scheme?
The following highlights some of this scheme’s salient features; take a look:
- To transfer the subsidy amount straight to the designated bank account, applicants must have a bank account.
- To stop LPG connection pricing from happening again, the subsidy will be placed into a bank account and the LPG cylinder will be sold at market price.
- The government will deposit a one-time advance of roughly ₹568 into a bank account. Before buying the first cylinder from the market, it will be accessible.
- The number of subsidised cylinders a user is eligible to get in a particular year determines the amount of the subsidy.
- Consumers can connect a gas connection to their Aadhaar card number or directly to their bank account.
- If the customer does not need the subsidies, they can consciously opt out of the program, and the savings will be used for other purposes.
- To receive SMS updates about this program, customers can register with a gas agency using their cellphone number.
- Each user will have a single gas connection, eliminating the need for several gas connections in every Indian home and doing away with third-party middlemen.
- It makes it possible for petrol companies to maintain a record of their customers, enhancing the calibre of their services.
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Pricing Under the PAHAL (DBTL) Scheme
Under the PAHAL (DBTL) system, household LPG cylinders are sold to CTC residential LPG customers at a Market-Determined Price (without the subsidy). The following are the price elements of this scheme:
The amount transferred to the customers
The CTC consumer receives the full cash value of the LPG cylinder in line with their entitlement for each supplied subsidised cylinder (up to the cap).
Grace Period
Three months from the date of PAHAL’s (DBTL) debut, non-CTC clients have the opportunity to convert to CTC customers. For non-CTC clients, the assigned cylinders will be provided at the then-currently applicable discounted retail selling price.
Parking Period
After the three-month grace period, non-CTC clients are free to park for an additional three months and receive LPG cylinders at the Market Determined Price. The corresponding OMCs will retain the full amount of money received from the sale of LPG cylinders to non-CTC customers (as permitted by law).
When LPG customers become CTC customers during the parking time, the corresponding OMCs will deposit the full amount of money (up to the cap) into their bank accounts in accordance with their entitlement.
Permanent Advance
Each new CTC customer who signs up for this program receives a one-time advance payment. The advance amount is announced on a regular basis and is set for a year. The advance payment ensures that LPG customers will have sufficient funds to purchase their first LPG cylinder at the market cost.
The consumer will keep the advance amount until the connection is terminated. The advance amount will be modified when the connection is terminated.
How to Join the PAHAL Scheme Online?
There are two options for applicants to sign up for the PAHAL scheme online:
Connecting a bank account to an Aadhaar card
Get Form 1 from PAHAL’s official website. People who don’t have an internet connection can get the same information from a gas distributor. Enter the necessary information, including your name and bank account number. Send this completed form to the appropriate bank or LPG provider.
In order to link their Aadhaar number with an LPG connection, applicants must complete Form 2. People can use the official UIDAI website to finish this process online. As an alternative, consumers can deliver the completed form to the appropriate LPG distributor with the Aadhaar card attached.
Not Connecting Your Aadhaar Card
Users can use Forms 3 or 4 to register through their savings account if they do not have an Aadhaar card. Fill out the form with the account holder’s name, account number, IFSC code, and other bank account information. Alternatively, to obtain the subsidy directly, request that the bank link the bank account to a gas connection.
What Are the Documents Required to Apply for the PAHAL Scheme?
To easily join this scheme, submit the following pertinent documents:
- Form 1: Send a copy of your Aadhaar letter to the bank or LPG distributor.
- Form 2: Aadhaar letter to be sent to the LPG distributor along with proof of residence
- Form 3: A current refill slip copy with a 17-digit LPG ID number on it
- Form 4: A copy of a cancelled cheque and the front page of a bank passbook
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Faq’s
Q. This PAHAL initiative was started by which Indian Ministry?
Ans: This PAHAL program was introduced by the Ministry of Petroleum and Natural Gas in 2013.
Q. How long does it take for subsidies to appear in a bank account?
Ans: After the cylinder is delivered, it usually takes two to three days to get the subsidy amount.
Q. What is this PAHAL plan in its entirety?
Ans: The PAHAL scheme’s full name is Pratyaksh Hanstantrit Labh.
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