Cabinet clears direct benefit transfer for LPG subsidy

New Delhi: The Cabinet on Thursday cleared direct benefit transfer on LPG subsidy. The scheme was to be introduced on January 1, but was postponed two times, most recently because only 13 per cent of Aadhaar numbers among the beneficiaries chosen for the launch areas had bank accounts.

Under a pilot project for LPG subsidy transfer, 20 districts in the country will be covered by May 15.

While about 32 crore Aadhaar cards have been issued by UIDAI, only 80 lakh bank accounts have linked to the unique identity numbers so far.

While the exact procedure to transfer the subsidy is being worked out, sources said subscribers will have to buy the LPG bottle at prevailing market price and subsequently the subsidy amount will be transferred to the bank account.

With additional information from PTI