11194 - LPG subsidy fiasco: Subsidy not credited -E-pao.net

LPG subsidy fiasco: Subsidy not credited
Source: The Sangai Express

Imphal, April 28 2017: 

Complaints are on the rise from LPG consumers in the State whose bank accounts are yet to be credited with the subsidy amount for booking LPG cooking gas from distributors under Indian Oil Corporation (IOC) at non-subsidised rates.

Most of the consumers claim that they have already procured cooking gas from the distributors at non subsidised rates but the subsidy amount have-not been deposited in their respective bank accounts.

They pointed out that they have already linked their Aadhaar cards, LPG ID and bank account information in order to avail the subsidies but their balance still remain unchanged.

According to an official of IOC's Imphal Divisional Retail Sales Office, the consumers have to make sure that their Aadhaar, LPG ID and bank account informations are linked properly in order to avoid any inconveniences.

He pointed out that if a consumer has not used his or her account for a period of six months, the account would become inactive and LPG subsidies would not be credited to such inactive accounts.

The official further explained that if a consumer has multiple bank accounts spread over different banks like State Bank of India (SBI) and UBI, the subsidy amount would be deposited to SBI account only, adding that not many consumers may be aware of this fact.

"Consumers must take care while linking the Aadhaar card, the 17 digit LPG ID and the bank account.

And consumers having multiple LPG connection, must have one primary connection and categorise the remaining as; secondary connections", he added. Urging the consumers to approach the IOC Imphal Office for their queries and complaints, the official pointed out that, from the total 3.32 lakhs LPG consumers present in the State, only 70 percent are Aadhaar linked.

LPG distributors in Manipur have eWallet facility through Paytm and Jiomoney.

POs facility is available in selected, distributors like RBD Indane, Misao Gas, Hrangchal, Bashikhong Indane, Sawombung Indane where debit and credit cards can be used.

"A consumer need to download the application and register' for availing the facility and a cash benefit of Rs 5 will be recieved by the LGP consumer for every refill delivery", he added.

He also stated that SMS and IVRS booking systems are also available with the distributors.

* This news is as published by respected news daily at Imphal, whose name is duly marked as 'Source'. E-Pao.net is not responsible for it's sanctity & originality.

9977 - A K Bhattacharya: Towards a new cooking gas regime - Business Standard

A K Bhattacharya: Towards a new cooking gas regime

A K Bhattacharya 

May 10, 2016 Last Updated at 21:48 IST

It was in 1955 that India saw the roll-out of liquefied petroleum gas (LPG) connections for use as domestic cooking fuel. For many decades since then, LPG connections have been expanding their reach across the country. By almost the middle of 2014, the total number of LPG connections was estimated at around 130 million. In the next two years, however, the coverage saw a sudden spurt as the number of active LPG connections increased by over 37 million. In other words, over 28 per cent of the number of LPG connections extended in about 60 years was added in just two years.

The periods chosen for comparison are significant for two reasons. One, they compare the performance of the various petroleum ministers in those 60 years with that of the current petroleum minister, Dharmendra Pradhan, in the last two years under the National Democratic Alliance government. Two, the two-year period from the middle of 2014 also coincides with a significant decline in international crude oil prices and a step-up in the coverage of the direct benefits transfer scheme for cooking gas distribution using the biometric identity-based Aadhaar system.

There is no doubt that an energetic and focused petroleum ministry, led by Mr Pradhan, has been a big help in spreading the LPG network. But it must also be noted that this initiative was aided by the falling crude oil prices which meant a steady reduction in the burden of under-recoveries on the oil marketing companies and subsidies on the central exchequer, even as the network of cooking gas connections rose sharply in these two years.

The oil subsidies burden on the government in 2013-14 was estimated at over Rs 85,000 crore. This saw a steep fall to around Rs 76,000 crore in 2014-15 and further down to Rs 27,000 crore in 2015-16. More than half of the petroleum subsidies go towards cooking gas for domestic use. Last year, LPG subsidies were estimated at Rs 16,000 crore.

The reduction in LPG subsidies has been achieved also with the spread of the Aadhaar-based direct benefits transfer scheme. Almost 90 per cent of the LPG connections in the country have been covered under this system of transferring subsidies directly to the bank accounts of the consumers. A district-wise monitoring of how the cash transfer scheme can cover more LPG customers has yielded huge benefits.

In addition, the wider coverage of the scheme has helped the government save on its subsidies bill. An estimated Rs 21,672 crore was saved on account of LPG subsidy in the last two years as the direct benefits transfer scheme helped weed out duplicate and ghost connections. The number of fake connections eliminated in the last one year is significant - over 33 million connections. Like his claim of the world's biggest cash transfer scheme for cooking gas, Mr Pradhan can also legitimately describe the elimination of false LPG connections as one of the world's biggest clean-up of fake customers in just one year.

Supplementing this initiative was a campaign launched by Prime Minister Narendra Modi, asking the economically well-off sections of society to give up their subsidised gas connections. Even the government had perhaps underestimated the response to the campaign. In about a year or so, over ten million customers have given up their connections and the government has saved subsidies worth Rs 5,000 crore.

It is possible that many of those who gave up their connections in response to the campaign may have been enjoying multiple connections and they realised that the coverage of the direct benefits transfer scheme would soon put an end to the practice of their having more than one connection per person or household. Whatever be the actual reason, the campaign did reduce the burden of subsidies on account of the cooking gas sector.

Finally, a new scheme to offer subsidised cooking gas connections to the poor has been launched. About 50 million poor families are proposed to be covered under the scheme in the next three years at a cost of Rs 8,000 crore. The government hopes that the task of identifying the poor would be less difficult by using a combination of methods - the Socio-Economic Caste Census, Jan-Dhan Yojana bank accounts, Aadhaar-based identity and the national LPG database - so that there is no misuse. Only time will tell if that exercise helps achieve the desired goals of targeting the scheme only to the poor.

But there is no denying that, underpinning all these initiatives, there seems to be a pragmatic approach to improving the targeting of subsidies and expanding the reach of clean cooking fuel for the poor. The approach certainly makes good politics, but whether it also makes good economics is a relevant question. It will probably become good economics as well if Mr Pradhan pays attention to at least three areas while implementing the next phase of cooking gas reforms.

One, there should be no delay in removing subsidies on cooking gas for the rich and the criterion for the rich should not be determined not just on the basis of income, but on a set of identifiable physical assets. Two, the principle of the direct benefit transfer scheme should be extended to all modes of cooking gas supplies including the connections that are to be issued to the poor families in the next three years. This will reduce the burden on the oil marketing companies and leakage of subsidies.

Finally, Mr Pradhan must put in place a plan to strengthen the city gas distribution system across the country so that over the next few years, India's cities switch over to piped natural gas as cooking fuel, leaving LPG cylinders for smaller towns and villages.

9056 - Cooking up a savings storm - Financial Express

Cooking up a savings storm

The NDA government could remove some 3.34 crore duplicate/fake cooking gas consumers thanks to the relaunch of Direct Benefits Transfer for LPG (PAHAL) scheme, leading to “savings of Rs 14,672 crore” in FY15, reports fe Bureau in New Delhi.

By: FE Bureau | November 12, 2015 12:23 AM

The NDA government could remove some 3.34 crore duplicate/fake cooking gas consumers thanks to the relaunch of Direct Benefits Transfer for LPG (PAHAL) scheme, leading to “savings of Rs 14,672 crore” in FY15, reports fe Bureau in New Delhi. This was even as less than half of the consumers enjoying cooking subsidy have seeded their bank accounts with Aadhaar.

Of 14.85 cooking gas consumers, only 7.24 crore or about 49% have linked their bank accounts and Aadhaar, according to a report by Kotak Institutional Equities. This indicates there is scope for further improvement in the targeting of subsidies.

The government is reportedly considering a new law to overcome the Supreme Court order that said Aadhaar can’t be a must for people to qualify for government doles and welfare benefits.

Meanwhile, during FY11-15, LPG consumers in six states — Uttar Pradesh, West Bengal, Madhya Pradesh, Bihar, Odisha and Jharkhand — have seen a rise from 31 million to 51 million. Now, these states accounts for 28% of all LPG connections in India, against 25% earlier.

First Published on November 12, 2015 12:23 am

8286 - Editorial: Much ado about #Giveitup - Financial Express

Editorial: Much ado about #Giveitup

Small subsidy cuts would have achieved a lot more

By: The Financial Express | July 15, 2015 12:10 am

Much has been made of prime minister Narendra Modi’s #Giveitup campaign, exhorting the better off to give up their LPG subsidies; indeed, the oil PSUs even asked their LPG dealers to try and convince users to give up their LPG subsidies through an awareness campaign over a week, and TV campaigns/ hoardings exhort the public to do this even today.

All told, 1 million people have given it up so far. While that is undoubtedly progress, it is a mere 0.7% of the total number that have registered their LPG connections under Aadhaar. At an average of 7 cylinders a year of usage—the cap has been put at 12 a year—that’s a total saving of a mere R140 crore out of India’s projected FY16 LPG subsidy of R19,000 crore.

In sharp contrast, if the government had followed the UPA’s policy of small cuts in diesel subsidies—say, a R5 per month cut in mammoth LPG subsidies which were R449.17 per cylinder a year ago and are R190.68 today—it could have saved a lot more. A cut in subsidies by R5 per month—so, take an average of R30 per cylinder for the year—across 13.5 crore users would mean savings of R2,835 crore based on an average usage of 7 cylinders per year and R4,860 crore if the cap of 12 subsidised cylinders is used. The collapse in global oil prices makes it look as if the government has achieved a lot, but had prices remained at last year’s levels, the picture would have looked very different.

Given how the UPA’s homeopathic hike in diesel prices never resulted in any political furore, it is indeed surprising that the government did not adopt this route for LPG subsidies; indeed, it is still not too late to do so. Nor is it clear why, if the #Giveitup campaign is as wildly successful as the government is making it out to be, this has not been tried for other subsidies like food and kerosene where the government spends so much more—while kerosene subsidies are likely to be R13,000 crore (at $60/barrel of crude), food subsidies are budgeted at R1.24 lakh crore. Indeed, it is odd that while India has 36.4 crore poor people, the National Food Security Act envisages giving subsidised food to 81.35 crore —to 74 crore at prices of a mere R2/3 for each kg of wheat/rice and 35 kg of foodgrains a month to 2 crore Antyodaya households. Once the SECC list of poor people is seeded with Aadhaar numbers, the government simply has to restrict the food subsidies to only the poor. Indeed, in even the case of LPG subsidies, the government has to restrict it to only the poor. While the official position is that Aadhaar is only meant to ensure the poor get their subsidies and not to cut expenditure on subsidies, the simple fact is the NDA cannot afford to carry on with the UPA’s absurdly high subsidies—albeit better targeted—and at the same time also hope to spend more on investment.

First Published on July 15, 2015 12:18 am

8168 - 14.08% consumers fail to link Aadhaar with distributor or bank accounts, lose subsidy - Hindustan Times

14.08% consumers fail to link Aadhaar with distributor or bank accounts, lose subsidy

Deepa Sharma Sood, Hindustan Times, Ludhiana| Updated: Jun 20, 2015 14:23 IST

In Ludhiana, out of 11,87,523 liquefied petroleum gas (LPG) consumers, 1,67,232 (14.08%) have failed to link their Aadhaar cards with LPG distributors or bank accounts to avail the subsidy.

Talking to Hindustan Times, district food and supply controller (DFSC) Sona Thind said, “Consumers who have not linked their Aadhaar cards with LPG distributor or bank accounts are purchasing LPG cylinders at the full price. We have made a lot of efforts to educate the consumers to link their Aadhaar, but despite that consumers are not interested in linkage.” 

LPG-sales district manager Mohammad Alam said, “Consumers who have not linked their Aadhaar cards with LPG distributor and bank accounts are not getting the subsidy after May 15. Due to this, the consumers have to purchase LPG cylinders at higher rates. If we look at the figures of linkage, most consumers have linked their Aadhaar cards with LPG distributors, against the figures of linkage of their Aadhaar cards with bank accounts.”

“In the coming months, if the consumers fail to link their Aadhaar cards with LPG distributor or banks accounts, we will be sure that the consumers have multiple connections, which is the reason that consumers are not availing the benefit of subsidy. Connections of the violators will be cancelled,” said Alam.

In Ludhiana district, there are 5,38,701 consumers of Indian Oil Corporation Limited (IOC), out of which 4,81,561 consumers have linked their Aadhaar cards either with distributors or with bank accounts.

However, in Bharat Petroleum Corporation (BPC) Limited, there are 1,28,420 consumers, of which 1,11,154 consumers have linked Aadhaar to get LPG subsidy.

In Hindustan Petroleum Corporation (HPC) Limited, there are 5,20,402 consumers, of which 4,27,576 consumers have linked their Aadhaar cards and get their subsidy in a week after refilling of LPG cylinder.

A consumer, Subhash Rani of Basti Jodhewal, said, “I was not aware about the LPG subsidy as I shifted here with my family three months ago. I applied for the LPG connection and the distributor didn't inform about the subsidy, but when I started receiving messages for subsidy, I immediately linked the Aadhaar card with LPG distributor. There is a need that the authorities must create awareness among residents as still many are not aware about the linkage process.”  

Oil companies           No of consumers            Linkage
IOC                               5,38,701                          89.39%
BPC                               1,28,420                         86.56%
HPC                               5,20,402                         82.16%

• TagsLudhiana liquefied petroleum gas Aadhaar cardsh LPG distributors Hindustan Petroleum Corporation

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5999 - DBT for Domestic LPG from Nov 15 - The New Indian Express

DBT for Domestic LPG from Nov 15

By Express News Service

Published: 13th November 2014 06:01 AM

SRIKAKULAM: The direct benefit transfer (DBT) scheme for domestic LPG connection will be implemented from Nov 15 in the district. Along with LPG, other welfare schemes are being brought under the DBT by Aadhaar seeding. The previous Congress government brought 25 schemes of eight departments under the Aadhaar seeding from June 2013. The scheme was stopped in February 2014 because of the Samaikyandhra agitation and other unforeseen circumstances.

The DBT scheme was restarted again by the Central and state governments with Aadhaar seeding. Only 89 per cent of the beneficiaries in the district have Aadhaar seeding with bank accounts. The total number of domestic LPG connections is 2,80,524, the Aadhaar seeding for which was done for all the connections. Each domestic LPG cylinder costs `939 and government provides a subsidy of `496. After the implementation of the scheme, the beneficiary will pay `939 and will have `496 deposited back into their bank accounts.

DSO Ch Anandkumar said that banks were given three months time to finish Aadhaar seeding.