PAHAL - Direct Benefit Transfer Scheme for LPG

PAHAL - Direct Benefit Transfer Scheme for LPG

Question - While launching the Pradhan Mantri Mudra Yojana and the MUDRA Bank, PM Narendra Modi also spoke of earlier successful schemes as a role model for this one. Discuss the scheme PAHAL whose success was cited by the PM recently.

PAHAL - Pratyaksha Hastaantarit Laabh Scheme, is the the Direct Benefit Transfer Scheme for LPG Subsidy.

• This scheme covers more than 9.75 crore LPG consumers

• It is considered to be one of the largest cash transfer programs in the world compared to other nations such as China, Brazil and Mexico

• Under the PAHAL scheme, LPG cylinders are sold at market rates and consumers get subsidy directly into their bank account through linkage by Aadhaar or bank account

• PAHAL also aims to lower diversion and prevent duplicate or bogus LPG connections

• A total of 66% of the consumer base of 15 crore are enrolled in the PAHAL scheme currently

• Amount of INR 3654 crore has already been transferred to the bank accounts of LPG customers through transaction amounting to 9.25 crore

• Modified scheme has established numerous mechanisms for simplifying enrolment and ensuring convenience to customers

• Only 1.09 lakh complaints have been received so far which is just 0.1% of the transactions; of these 85% of the complaints have been resolved

• Growth of subsidised LPG has also fallen in 54 districts through an increase in the sale of commercial LPG

• Scheme will also encourage savings in subsidy without lowering entitlements of existing consumers so that they can then be deployed for other productive purposes

• This scheme has been formulated through an intensive Information Education Campaign which incorporates various types of advertising as well as direct reach to consumers and dealer level campaigns

• PAHAL scheme has many innovations such as guardian officers for every district, deployment of technology through SMS and a single window portal for customers to join the scheme

• After the Pradhan Mantri Jan Dhan Yojana, this scheme was found to be most beneficial for the economy

• Impact analysis is also carried out for this scheme

Facts and Stats

• In March 2015, 81% active LPG consumers amounting to 11.74 crore have joined the PAHAL scheme launched in 54 districts of the nation

• PAHAL was launched on November 15th, 2014 in 54 districts and the remainder of the country by 1st January 2015

• During this brief period, overall enrolment of over 80% has been achieved

• INR 6745.41 crore has been transferred as part of this scheme since its inception in the 54 districts through 18.9 crore transactions

• Currently, fixed permanent advance of INR 568 is provided to each customer which has been revised to become variable each month equal to the actual subsidy at the time of booking and subject to a maximal limit of INR 568

• PAHAL saves subsidy through reduction of the incentive for the diversion of subsidised cylinders and an effective exit route for those not aiming for subsidies on domestic gas cylinders