10401 - DBT Blues: Add a zero at the end - Governance Now

DBT Blues: Add a zero at the end

The government claimed that DBT in cooking gas saved over Rs 21,000 crore. Now the CAG finds that the actual figure was less than a tenth of it

Pratap Vikram Singh | September 8, 2016 | New Delhi

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The Comptroller and Auditor General (CAG) of India has strongly contested the government’s claim of having saved several thousands of crores through the direct benefit transfer for LPG (DBTL). In an audit report titled ‘Implementation of Pratyaksh Hastantrit Labh Yojana (PAHAL Scheme)’, it put the savings at only Rs 1,763.93 crore against the government claim of Rs 21,261 crore, in 2014-15 and 2015-16. The government launched the scheme in November 2014. To sell the effectiveness of the DBT platform as ‘the’ medium to deliver social security payments and benefits, the government claimed that the savings accrued from the transfer of subsidy paid on the cooking gas directly into consumers’ bank accounts was Rs 14,818 crore for 2014-15 and Rs 6,443 crore for 2015-16. The cash transfer system was conceptualised by the UPA government, which called it a ‘game-changer’ and key to revive its fortunes in the 2014 national elections. Due to faulty execution, the UPA government abandoned the programme just before elections, fearing backlash from the voters. In his 2015 Independence Day address, PM Modi claimed that India had saved Rs 15,000 crore annually in subsidy outgo for cooking gas thanks to DBTL and GiveItUp campaign. The auditor also found several duplications and errors in the databases of the three oil marketing companies. “Audit verified existence of multiple connections bearing ‘same Aadhaar number’ and ‘same bank IFSC and same bank account number’. The verification identified 74,180 LPG customers linked to 37,090 Aadhaar numbers indicating existence of multiple connections. In the case of ‘same bank IFSC and the same bank account number’, 17,694 LPG ‘active’ customer IDs were linked with 8,847 same bank IFSC and same bank account number,” the report said. The CAG noted that although the DBTL scheme seems to address the issue of diversion of subsidised LPG cylinders for commercial purposes, there is “the risk of diversion of non-subsidised domestic LPG for commercial uses”. There is, indeed, a significant difference in the cost of non-subsidised domestic LPG and commercial LPG on account of differential taxes and duties levied on the two categories of consumers. Some highlights from the report: * The actual subsidy payout during the period from April 2015 to December 2015 was Rs 12,084.24 crore as against Rs 35,400.46 crore during April 2014 to December 2014. The significant reduction of Rs 23,316.21 crore in subsidy payout was on account of the combined effect of decrease in off-take of subsidised cylinders by consumers and lower subsidy rates arising from the sharp fall in crude prices in 2015-16. Audit examination indicated that reduced subsidy rate on account of fall in crude oil price resulted in reduced subsidy payout of Rs 21,552.28 crore, while the effect on the same due to reduced offtake of cylinders by consumers worked out to Rs 1,763.93 crore. Therefore, it is evident that the lower subsidy rates in 2015-16 are, by far, the most significant factor resulted in subsidy savings. * The ministry of petroleum and natural gas estimated (in February 2016) potential savings in LPG subsidy for 2015-16 at Rs 9,211 crore while the oil marketing companies estimated the savings for the same period at Rs 5,107.48 crore. The methodologies adopted by the ministry and the OMCs were different. In both estimations, however, audit noticed inherent inconsistencies which would lower the estimated savings. MoPNG assumed that the inactive or blocked consumers, who were not eligible for subsidy would have availed the entire quota of 12 cylinders against the national average per capita consumption of 6.27 cylinders in 2014-15. Considering the national average off-take of 6.27 cylinders (as used by OMCs in their estimation), the estimated savings in subsidy for 2015-16 would be Rs 4,813 crore only. pratap@governancenow.com

9801 - Aadhaar-linked LPG: Govt says Rs 15,000 cr saved, survey says only Rs 14 cr in FY15 Business Standard

Aadhaar-linked LPG: Govt says Rs 15,000 cr saved, survey says only Rs 14 cr in FY15

Research says Aadhaar was not necessary for de-duplication exercise

Nitin Sethi  |  New Delhi 

March 18, 2016 Last Updated at 12:00 IST

What has been the net benefit that arose out of using Aadhaar within the Direct Benefits Transfer of liquefied petroleum gas (LPG) or PAHAL scheme as it is now called? Research done by the International Institute for Sustainable Development (IISD) says the benefit from Aadhaar in the scheme through de-duplication of records was at best limited to Rs 12-14 crore in 2014-15 and about Rs 120.90 crore in 2015-16, that, too, before accounting for any additional costs.

NOT LINKED

Research done by International Institute for Sustainable Development says the benefit from Aadhaar in the PAHAL scheme through de-duplication of records was about Rs 120.90 crore in 2015-16, that, too, before accounting for any additional costs Nandan Nilekani wrote in The Indian Express on March 9 that there was “visible evidence of its utility with Rs 10,000 crore-plus savings in LPG subsidy in one year alone”

This is in sharp contrast to the figures quoted by the government or the founder of Aadhaar. Nandan Nilekani wrote in The Indian Express on March 9 that there was "visible evidence of its utility with Rs 10,000 crore-plus savings in LPG subsidy in one year alone". He was quoted on December 7, 2015 in The Indian Express as saying, "The government has also saved $2.5 billion in one year by linking LPG users to Aadhaar numbers." Recently, in a debate in the Lok Sabha, Finance Minister Arun Jaitley said, "Today, by just using the technology and targeting the subsidy, in the initial stages itself, the saving for the central government has been Rs 15,000 crore." He was also speaking on the use of Aadhaar in the LPG distribution scheme.

IISD's researcher Kieran Clarke, in his paper, "More ghost savings: Understanding fiscal impact of India's direct transfer program - Update", has argued that the government has miscalculated the savings by crediting the Aadhaar platform for the work that oil marketing companies (OMCs) had already done of weeding out duplicates and ghost customers before Aadhaar or DBTL was introduced. He concludes that the list-based weeding out of duplicates by the OMCs was 15-20 times more effective in identifying irregular connections than the Aadhaar system. He summarises, "It is the connection regularisation program, which in no way required the introduction of either DBTL or Aadhaar, which has overwhelmingly been responsible for the identification and removal of invalid connections and associated consumption."

Reacting to the study, Dr A B P Pandey, director general and mission director of Unique Identification Authority of India said, "It is not possible to segregate and say how much Aadhaar achieved and how much was achieved otherwise by OMCs. We have to look at it as a whole collective exercise that began in 2012. But, without Aadhaar the benefits of de-duplication and weeding out would be temporary. Aadhaar has ensured that those who were weeded out don't come back in."

He also said, "Everyone knew then that Aadhaar is being introduced and it would catch people so they did their task more diligently."

Clarke, besides citing data of how the OMCs identified duplicate connections and then weeded a substantial part out, also cites the S G Dhande committee report of May 2014 which stated that "In the 291 districts covered under DBTL, 618,000 duplicate connections were identified out of over 40 million LPG consumers who provided Aadhaar numbers." He also cites the government of India's affidavit in July 2015 to the Supreme Court while advocating Aadhaar which notes that IOCL checked LPG connections against 80.8 million cards and found 800,000 instances of duplicate connections.

Clarke in his report states that by March 2012, the OMCs had already blocked 3.8 million connections and by November 2012 the OMCS had "therefore identified (through a process unconnected to DBTL or Aadhaar) at least 26.6 million potential multiple connections and of these blocked 5.3 million with a further 21.3 million potential connections undergoing a process of verification."

He writes that by May 2013, the government noted it had blocked 6.3 million duplicate connections, raising the total identified and blocked connections to at least 15.2 million which continued to be reported by the OMCs as part of the total connections given at that time. By March 2015, the number had risen to 12.7 million multiple connections - roughly half of the 26.6 million potential multiple connections identified in November 2012.

Using finance ministry's figures, Clarke notes, "As of April 2015, there were 85 million LPG customers linked to Aadhaar - over half of whom had been linked as part of previous implementation of DBTL by UPA government in 2013-14." He draws the assumption from it that approximately 35 million connections were newly linked to Aadhaar prior to April 1, 2015 through the PAHAL scheme by current government. Calculating the differential monthly per-cylinder subsidy rates, he also assumes that potentially irregular connections were identified and cancelled right at registration. Based on these assumptions, and not including the cost of implementing Aadhaar in DBTL, he concludes that roughly Rs 12-14 crore was saved in 2014-15 through the Aadhaar-based de-duplication process. Doing a similar exercise for 2015-16, Clarke assesses the savings in 2015-16 to be around Rs 120.90 crore.

"Aadhaar seeding is still going on. One cannot assess the total benefits of Aadhaar in the schemes before the exercise is completed. To derive the benefits of the de-duplication Aadhaar is essential. Or, just like it has always happened in the ration cards, you shall see ghost connections resurfacing every two years after the weeding exercise," Pande explained. "There is no system better equipped to deal with ghost cards than Aadhaar," he added.

9671 - Six benefits of having an Aadhaar Card - India Info On Line

Six benefits of having an Aadhaar Card

India Infoline News Service | Mumbai | March 27, 2016 14:59 IST

As per the earlier mandate of the UPA government, Aadhar enabled bank account was the basis of the transfer of subsidy amount directly to the bank account.

As the government is emphasizing on linking Aadhar card with bank accounts, there is a need to review some of the benefits that are attached with Aadhaar card. Before delving on the subject, it is important to note that Aadhar number is a 12 digit UID (unique identification number). 

Here are the benefits that come with Aadhar card. 

1. Direct Benefits Transfer (DBTL) - As per the earlier mandate of the UPA government, Aadhar enabled bank account was the basis of the transfer of subsidy amount directly to the bank account. The process remains the same during the Modi-led government as the subsidy amount gets credited to bank account. However, if an individual does not require subsidy, then he/she can opt out of the scheme. 

2. Scholarships - Students entitled to receive a scholarship from the government will get the amount credited to the Aadhaar enabled bank account. The need for linking Aadhaar to the bank account for receiving scholarships is implemented only for a few select Indian states. 

3. Access to DigiLocker - The government’s initiative to allow every individual store their personal documents on its server through DigiLocker. The access to this facility requires one to have a valid Aadhaar card number. 

4. Monthly Pension payments - For the convenient and seamless transfer of pension amount, the government has made it mandatory for pensioners of select states to register their Aadhaar number with the respective department to receive pension payments. The move is also intended to curb fraudulent practices of claiming pension by beneficiaries. 

5. Payment of Provident Fund - The government has also made it mandatory for employees to link their Aadhaar number with the EPFO (Employee Provident Fund Organization) for claiming the proceeds. 6. Digital Life Certificate - Under the ‘Jeevan Praman for Pensioners’ initiative, the government will put an end to the woes of pensioners by doing away with the need of being physically present to receive the pension. In this scheme, the pensioners will be granted digital life certificate, which will enable smooth transfer of pension payments to their Aadhaar enabled bank accounts. - 

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9248 - A case for expanding DBT

A case for expanding DBT

• T.C.A. SHARAD RAGHAVAN

The National Democratic Alliance (NDA) government, by design and thanks to some legacy benefits from the United Progressive Alliance (UPA) government’s term, is increasingly finding itself in a sweet spot where social security aid and subsidies can finally be rid of the long-standing issues plaguing such systems in India. The two major issues with subsidies in India — targeting and leakages — can both be tackled by the government’s ongoing Direct Benefits Transfer (DBT) push. The time is now ripe to have DBT for all subsidy programmes.

Leakages occur when the subsidy does not reach the recipient due to corruption, pilferage or other causes. Mis-targeting benefits higher income groups that don’t really deserve the subsidies, thereby needlessly increasing the government’s expenditure.

The government’s DBT plan, which simply involves transferring the subsidy amount directly to the beneficiaries’ bank accounts instead of having to fiddle around with differential pricing for the underprivileged, can effectively address the issue of leakages and go a long way in solving the mis-targeting problem.

Efficient targeting, using Aadhaar-linked data, ensures that the intended beneficiary receives the money in his account, thus helping him as well as reducing the government’s subsidy burden. This has resulted in effectively solving the leakage and mis-targeting problems in some schemes, but other schemes have shown that they need more work to be efficient.

The case of MGNREGA wages is an example where DBT effectively addressed both issues at once. In the beginning, there were reports across the country of MGNREGA wages — at the time given in cash — being misappropriated by middlemen in such large-scale systems. In 2013, the government initiated the DBT scheme in MGNREGA after several successful pilot projects and eliminated these middlemen to a large extent. So far, in this financial year, under this scheme, Rs.20,500 crore has been credited to the accounts of almost 5 crore people. All the beneficiaries — only the beneficiaries — stood to reap benefits from MGNREGA wages.

More fine-tuning

However, other schemes, though successful, need more fine-tuning. While the original DBT scheme for liquefied petroleum gas (LPG) subsidies, named PAHAL [Pratyaksh Hanstantrit Labh], was launched in June 2013, the NDA government modified and re-launched the scheme in 54 districts in November 2014; for the rest of the country it was January 2015. The idea was that consumers link their Aadhaar number to a bank account and receive the subsidy amount for 12 cylinders in a year. Those without an Aadhaar number could furnish any other bank account to receive the subsidy.

Now, while this ensured that all LPG consumers could, in theory, avail of the subsidy, it also meant that a large proportion of the subsidies were going to people who could afford LPG cylinders at the un-subsidised rate. Towards this, and to the credit of the government, it was recently decided that people earning more than Rs.10 lakh a year would not be eligible for the LPG subsidy.

So, DBT addresses the leakages issue while the income cap addresses the mis-targeting problem. Back-of-the-envelope calculations (since there are no accurate figures of how many LPG users earn more than Rs.10 lakh) peg the government’s savings from such a move at around Rs.5,000 crore a year.

There are also subsidy schemes where DBT, in its efficient implementation, could actually result in adverse outcomes. Take the example of DBT in the kerosene scheme the Centre is incentivising States to adopt. The benefits here are immense. Experts estimate that around half the kerosene sold in the country is being misused. Instead of being used as lighting fuel — its most common use — kerosene is being used to adulterate diesel among other things. This means that the benefit of kerosene being sold at subsidised rates is also unintentionally going to those involved in such activities.

Under the DBT in kerosene scheme, the consumer buys kerosene at full price and then receives the subsidy amount in his bank account if eligible. Here, too, mis-targeting and leakages are addressed. But, as economist Pronab Sen has pointed out, this could lead to unintended outcomes unless the scheme is managed carefully.

If the subsidy amount each household is due is calculated on the basis of the total amount of kerosene sold divided by the number of eligible households, then this will result in each household receiving about double the subsidy amount it should be getting because total usage also takes into account pilferage. In other words, the total sales figures overestimate actual household-level usage because they also take into account usage by theft.

Over-subsidising kerosene to such an extent will mean that it will remain the lighting fuel of choice for poor households, with no chance of a switch being made to cleaner energy sources like solar power. So, in improving the targeting of kerosene subsidies, the government could be cementing the use of the dirty fuel in future. The possibility that the government will subsequently reduce the subsidy amount, viewed as a political no-no, seems remote.

Currently, the government has introduced DBT in food subsidies in only a few Union Territories and is looking to introduce it in fertilizer subsidies as well — a fervent demand made by farmers’ associations when they met the Finance Minister for a pre-Budget meeting recently.

The sweet spot created by universalising banking via the Jan-Dhan Yojana, efficient targeting via Aadhaar, and the increasing ubiquity of smartphones is so attractive that the government should make full use of it to extend DBT to all subsidy schemes. It’s a win-win.

sharad.raghavan@thehindu.co.in

Targeting and leakages can both be tackled by the government’s ongoing Direct Benefits Transfer push. The time is now ripe to have it for all subsidy programmes

9211 - DBT scheme for foodgrains launched in Chandigarh - Business Standard

DBT scheme for foodgrains launched in Chandigarh

Press Trust of India  |  Chandigarh 

December 23, 2015 Last Updated at 20:22 IST

http://www.business-standard.com/article/pti-stories/dbt-scheme-for-foodgrains-launched-in-chandigarh-115122301004_1.html

The Direct Benefit Transfer (DBT) scheme for foodgrains was launched in the city today by UT Chandigarh Administration.

With the implementation of DBT scheme, the subsidy amount will be directly transferred into bank accounts of eligible beneficiaries thereby eliminating the chances of leakage and delays in the supply of foodgrains, if any, an official release said.

As per provision under National Food Security Act, 2013, two categories of households have been defined Priority Household (PH) and Antyodaya Anna Yojana (AAY) Households.

The eligible PH are entitled to receive 5 kg of foodgrains per member/unit and the AAY household for a total of 35 kg of foodgrains (in 3:2 ratio of wheat and rice at Rs 2 and Rs 3 per kg, respectively).

An official spokesperson said the subsidy amount for September amounting to Rs 1.68 crore under the scheme has been transferred directly into the Aadhaar seeded bank accounts of eligible households/beneficiaries.

A total of 41,167 households with 1,78,247 units (41,111 Priority Households and 56 AAY households) have been identified for transfer of cash subsidy amount into their respective bank accounts.

9174 - Modi’s Challenge: He Has To Begin Selling JAM As Bread Plus Freedom - Swarajya

Modi’s Challenge: He Has To Begin Selling JAM As Bread Plus Freedom

R Jagannathan

Jagannathan is Editorial Director, Swarajya. He tweets at @TheJaggi.

What Manmohan Singh failed to do in 1991-96 and 2004-14, Modi should do in 2014-19. If he only spends his remaining tenure making JAM work, he would be seen as a truly reformist prime minister.

The Modi government’s inexplicable delay in extending the ambit of subsidy delivery reforms after the early success of the LPG direct benefits transfer (DBT) scheme and the “Give it up” campaigns raises questions about how serious it is about using the JAM trinity (Jan Dhan-Aadhaar-mobile), its towering achievement in its five-year term.

DBT for cooking gas became the universal norm on 1 April – and there are few murmurs against it – but as of mid-December we don’t hear too much about extending the DBT to more areas. There is, off course, talk of extending the DBT to kerosene and food, but caution is the watchword.

Of course, we need not assume the government has already got cold feet, but in February this year the government said it was planning to extend the scheme to fertiliser subsidies, and we haven’t seen much progress since then; and in July it said it was rolling out pilots for food subsidy in three Union territories – Puducherry, Chandigarh and Dadra & Nagar Haveli. The pilot projects are too small and the opposition is building up (mainly from ration shops). If DBT is not quickly scaled up before the opposition to it gathers more steam, it will be a much-watered down achievement for Modi.

The need for speed is obvious. One-and-a-half years of the NDA government are over, and it effectively has two-and-a-half more years to deliver results on the ground, assuming, safely, that no government will launch any politically difficult ideas in the last year of its tenure. And subsidy reform in the vital areas of food, fuel and fertiliser will probably take all of two years to roll out fully, given the need to improve financial literacy, fight the legal hurdles to the spread of Aadhaar, and iron out the kinks in mobile banking using payment banks.

It is worth recalling here the JAM is hardly an NDA invention. The UPA government was the original author of the idea of financial inclusion, the rapid expansion of mobile ownership (ironically enabled by A Raja’s corruption, which kept mobile costs ultra-low) and the Aadhaar unique ID (still barely legal, given the lack of a law to give it teeth). In fact, the Congress had even coined a slogan – Aapka paisa, aapke haath – to sell the idea of DBT two years before the 2014 elections. But it chickened out despite the obvious attractiveness of the scheme.

We can only speculate on why the Congress dumped its own schemes when Narendra Modi has been able to build on them successfully.

First, the DBT scheme hits directly at corruption by eliminating middlemen and fixers from the delivery of subsidies. The Congress, which clearly has had a record of long-term corruption, must have balked at the possibility that its power base was about to be up-ended.

Second, the early success of the kerosene DBT scheme in Rajasthan – where kerosene demand fell dramatically during the pilot project – may have scared the daylights out of vested interests, and this fact would have got the politicians worried. 

According to this Hindu Business Line report, in one Alwar block, kerosene demand dropped by nearly 70-80 percent when the DBT was introduced, indicating the level of possible misallocation that may have been happening when kerosene was sold through fair-price shops at a subsidised price.

Third, despite tall talk about financially empowering the poor, a vital component in a scheme where the subsidy is to be directly credited to a beneficiary’s account, the fact is the Congress was unimaginative in its efforts to ensure financial inclusion. In contrast, consider how fast the Modi government made the Jan Dhan scheme universal – at last count, there were nearly 20 crore Jan Dhan accounts, enough to cover all households barring those living in the remotest parts of the country, and possibly in areas with poor law and order conditions (like Naxal-infested areas).

Fourth, Aadhaar was also facing a legal challenge around 2013, but that should have been a reason to speed it up and make it stick while moving the court for concessions on its rollout – as the Modi government has done. It is difficult to see how the courts could have annulled a scheme meant to help the poor, but the UPA was particularly careless about passing a law to make Aadhaar legally sound.

Taken together, one would think that subsidy reform was slowed down purely for political reasons. The Congress-led UPA simply did not have the stomach for it.

The big question is: will Modi show the gumption that Sonia Gandhi lacked?

Governments tend to lose their nerve when they are politically diffident, and the stunning defeat of the BJP in Delhi and Bihar could not have done anything to restore the Modi government’s confidence.

However, if we accept the reality that fortune favours the brave, this is no time for the Modi government to become politically risk-averse. On the contrary, it should see that there is nothing more to be lost after the Bihar and Delhi debacles. Its best bet is to focus on delivering subsidy reforms quickly in the hope that, at some point before 2019, its benefits will be obvious to the poor.

Time is running out for one simple reason: given the belligerence of the Congress and its ability to block reforms legislation endlessly in the Rajya Sabha, and given the reality that many state elections are due in 2016 and 2017 (UP is the big one), delivery on “achche din” has to come in areas where the opposition cannot block. This means using the Union budget creatively (money bills cannot be blocked by the upper house), and focusing on areas directly controlled by the centre – the financial system (Jan Dhan), mobile networks and Aadhaar (through a babu-driven process, and assuming the Supreme Court does not finally stymie it).

The problem with Indian politicians is that they think “free” is the only saleable proposition when it comes to wooing voters. “Freedom” is not something they think about.

However, it is time for Modi to explain a new equation that the poor are not beggars, and that “free” comes with a price, and that price is freedom and dignity – and access to subsidies. This, after all, was the logic of the “aapka paisa, aapke haath’ slogan. People know that subsidies intended for them don’t reach them – at least in full.

Modi should personally campaign for JAM and subsidy reform by explaining why it helps the poor more than cheap grain inefficiently supplied through ration shops.

#1: No standing in queues. The poor save time and hence money – as they can use the time to earn more from available work.

#2: The beneficiary of subsidy is converted to a consumer with buying power – the key to social respect. If earlier the poor had to kowtow to the whims of ration shopkeepers and put up with poor quality grain and adulterated kerosene, now they can buy whatever they want from whom they want. They can boycott the crooks. They are “free to choose.” This is empowering, not something politicians want. Once people are free to choose, they may well think politicians are not that vital for their well-being.

#3: Money in the bank can be used for anything. The poor can buy less kerosene and pay school fees for their kids; they do not have to buy something merely because it is cheap and subsidised.

The economic efficiency benefits are obviously enormous, but that is not what needs marketing. In an electoral democracy, what needs explaining is how the last man benefits from reforms.

Since the intention is not actually to cut subsidies but merely to avoid leakages, Modi should take courage in his hands and explain that the poor will not lose their subsidies, but will get choice on how to use them.

In other words, he can truthfully tell them that what is he offering them is not bread or freedom, but bread plus freedom. JAM equals bread plus freedom.

If Modi only spends his remaining tenure making JAM work, he would be seen as a truly reformist prime minister. And reforms will not anymore be seen as pro-rich. What Manmohan Singh failed to do in 1991-96 and 2004-14, Modi should do in 2014-19. He can be the man of destiny for pro-poor reforms.

8819 - Using JAM to bring about social change - Governance Now

Using JAM to bring about social change

Direct benefits transfer is increasingly seen only as a framework of fiscal efficiency. It’s much more than that and can actually be used to bring about deep rooted social change

R Swaminathan | October 3, 2015

What can we do if we link money, digital identity and a mobile phone? A lot, if one were to put it simply. The idea is brilliant and practical at the same time, which is a rarity. It’s an idea that the government of India seems to have picked up and is keen on running with it for a long time. Like all things in the Modi Sarkar, they call it by a fancy acronym: JAM or Jan-Dhan, Aadhaar & Mobile.

There are two typical reactions to this move by the government. Both are on expected lines. The first is an almost blind adulation that has come to be associated with techno-fundamentalists. It’s an approach that’s underpinned by an extremely simplistic understanding of complex social realities and an equally naïve conceptualisation of the potential of technology to remove such complexities. In short, the techno-fundamentalists eventually come to the conclusion that social problems are nothing but a technological fix away. In their collective rose-tinted vision, JAM is the silver bullet that will destroy generations of deprivation and marginalisation that has seeped into the fabric of Indian society. Even a cursory analysis of how direct benefits transfer is playing out at the food subsidy level should substantially change the rosiness of the vision to a different hue.

The second reaction is at other end of the spectrum, and is something that’s increasingly associated with the technophobes. It’s an approach that’s based on an overarching fear of any form of technology, and more specifically digital technology, to resolve or change anything that’s remotely in the social realm. In short, for the technophobes, in the final analysis, digital technology is the big bad brother that will further amplify and accentuate social inequities. In their yellowed vision, digital technologies are nothing but another set of tools for the powerful to exert greater control. Just a glance at the way mobile phones have democratised access to information and communication systems in huge swathes of rural India should fundamentally bring in greater rosiness into their vision.

JAM has tremendous transformative potential. There is no doubt about it. Equally, if it implodes, it has enough destructive power to put back India by decades. It’s potential for good and bad are both based in the manner in which JAM is replacing the traditional plumbing and wiring, if one may use a real-world analogy, of the bureaucratic and programme delivery system. The reality lies somewhere in between. If the LPG subsidy is touted to claim how JAM can be a successful way of bringing in greater efficiency and transparency in the allocation and delivery of energy subsidy, the manner in which the direct transfer of food subsidy is playing out in different states with people completely getting deprived of basic food safety net is a warning sign of how JAM can implode. It is within this context that JAM needs to be placed. When the concept and practice of convergence as envisaged by JAM are debated within this context, there are particular strands that need to be understood and deconstructed in some detail and depth. These are critical strands and, if not strengthened adequately with proper public discourse, can rip apart quickly leading to an implosion.

The first is the issue of efficiency. JAM and direct benefits transfer are currently seen in the policy and decision making circles as means to achieve two things: fiscal efficiency at the macroeconomic level through a ‘better targeting’ of beneficiaries and reduction in leakages and corruption by ensuring that benefits and subsidies reach the people directly. The current discourse on efficiency completely ignores the fact that a large population of the most marginalised and deprived sections is not being served at all by the government due to inadequate allocation. There is an urgent need to free the concept and practice of efficiency from the stranglehold of bureaucrats and technocrats so that the efficiency discourse reorients its frameworks to exclusively deal with last-mile delivery rather than allocation. In fact, JAM and direct benefits transfer should be seen as a mechanism for the government to substantially increase its allocation to social sector and focus areas such health, nutrition, education and various critical public goods like water, food and common resources.

The second is the discourse on targeting, which in more ways than one is linked to the current narrative on efficiency. There are several robust and methodologically solid studies that prove quite decisively that targeting of benefits and subsidies not only does not work but also adds layers of inefficiency and operational costs on to the bureaucratic infrastructure. Simply put, any operating logic that needs to identify beneficiaries on set parameters needs the physical and people infrastructure to start doing so. Embedded in that infrastructure are layers of subjectivity, opportunity and processing costs, time delays and audit and forensics requirements. Targeting is capital and technology intensive and requires huge amounts of data, money and people to ensure that parameters are followed. Yet the results are at best spotty. JAM and direct benefits transfer, if located within the reoriented definition of efficiency, can actually be used to remove targeting as methodology of delivery of entitlements and services. There are several real-world examples of how universal entitlements – food grain entitlements through the public distribution system in Chhattisgarh and health services in Cuba – have worked quite well to bring out groups and communities out of extreme poverty.

The third is the idea of universal basic income. If the discourses on efficiency and targeting can be reoriented, JAM can as well become the delivery platform for every single Indian to get a basic income from the state. It isn’t an outlandish idea. It’s based on a deep-rooted social logic that every Indian, whether rich or poor, should get a direct income from the government because s/he and his or her descendents have contributed to the growth of India. For example, a construction worker who builds highways and roads that leads to crores of revenues which in turn contributes to the country’s GDP also needs to earn a regular dividend from it. SEWA has displayed the effectiveness and practicality of the idea by showing its possibilities in a pilot project, supported by Professor Guy Standing (the author of The Precariat Charter), where over 18,000 Indians (men and women and children) were given '300 every month directly deposited into an individual account. Children were given '100 a month, and interestingly the mother was given the authority to operate the account. Preliminary results indicate a substantial jump in all human indicators, from nutritional to learning outcomes.

It’s clear that the government has embarked on a journey that’s going to see digital technology play a big role in the delivery of services, rights and entitlements. In fact, that’s the core of electronic and mobile governance. It is, however, critical to ensure that digital technology is not seen only as a tool to bring about macroeconomic fiscal efficiency. 

- See more at: http://www.governancenow.com/gov-next/egov/using-jam-bring-social-change#sthash.KBTTRXOY.dpuf

8751 - Govt expects DBT to plug 35-40% leakage in PDS - Live Mint

Govt expects DBT to plug 35-40% leakage in PDS

Savings from DBT of food subsidy expected to be much larger than that for LPG; national rollout by January

Fri, Sep 25 2015.

Saurabh Kumar

In PDS, the official said, some leakage arises due to fake ration cards. Photo: Pradeep Gaur/Mint

New Delhi: The Union government is almost ready with a system that will directly transfer benefits in the public distribution system (PDS) after it tasted success in such subsidy transfer for liquefied petroleum gas.

The PDS is administered by the state governments and they will be able to use this system by the end of this year, a top official said.

“We have asked the states to move fast but cautiously,” a finance ministry official who is working on the direct benefits transfer (DBT) scheme said on condition of anonymity.

This will help government check leakages worth 30-40% of the total food subsidy given through the PDS, the official added.

Currently, only the Union territories of Chandigarh and Puducherry use DBT in PDS. The Aadhaar-based transfer could be either through cash or collection of foodgrains from ration shops through biometric authentication. “In Chandigarh, we have started cash transfers,” the official said.

Under DBT for LPG, or Pahal Scheme, so far 141.9 million beneficiaries have received Rs.25,447.93 crore in their bank accounts since the scheme was relaunched in November 2014. The government expects to save Rs.15,000 crore in leakages in LPG subsidy every year.

In PDS, the official said, some leakage arises due to fake ration cards. “Now that the identity of a person is known and ration cards are Aadhaar-verified, only the right beneficiaries will get the subsidy,” he said. Around 95% of states have already digitised ration cards. Digitization for cardholders means getting their ration card information updated on a computer system.

The savings from DBT of food subsidy is expected to be much larger than that for LPG. According to budget estimates, India’s food subsidies for the 2015-16 will be Rs.1.24 trillion. So, if government manages to save 40% of the subsidy, it will be around Rs.50,000 crore annually.

“If the government is moving in this direction, then it is good and I will like to see the states to move faster in adopting the system,” said Ashok Gulati, a former chairman of the Commission for Agricultural Costs and Prices, which advises the government on food prices. “It is a low hanging fruit and the amount saved can be used for say education which will increase efficiency.”

The government’s savings will go up further if it accounts for the unpaid bills of the Food Corp. of India, which is expected to be around Rs.70,000 crore for 2015-16, Gulati said. A committee headed by former food minister Shanta Kumar, in its January report, had found that diversion of foodgrains from PDS amounted to around 47% of the total food subsidy.

“Cash transfers can be indexed with overall price level to protect the amount of real income transfers, given in the name of lady of the house, and routed through Prime Minister’s Jan Dhan Yojana and dovetailing Aadhaar,” the report said. Jan Dhan Yojana aims to open a bank account and provide insurance cover for every household in the country.

The DBT official said the cash transfers will be done at 1.25 times the issue price of foodgrains to tackle market fluctuation of foodgrain prices. “It is to protect a person from higher prices,” he added. According to the National Food Security Act, 2013, PDS beneficiaries are entitled to 5kg of foodgrains per person per month.

The government is overplaying the bogus cards factor as the main reason for leakage, according to Dipa Sinha, a right-to-food campaigner. “Whenever the government has done an exercise, be it in Delhi or Chhattisgarh, not more than 10% of the cards have been found to be fake,” she said.

Often the leakages happen before the foodgrains reach the fair-price shop, she said. “The leakage is happening in the supply process and Aadhaar can only help in reducing duplication,” she said. Sinha also said that cash transfers will worsen the farmer crisis as minimum support price is their only support and the procurement process will be affected.

A Supreme Court ruling on 11 August restricted the use of the Aadhaar number to distribution of cooking gas cylinders, kerosene and foodgrain through the PDS. The DBT for kerosene will also start in October and will be operational in states where food subsidy through the platform exists, the government official said.

Saurabh Kumar

8725 - LPG subsidy scheme in Guinness World Records - TNN

LPG subsidy scheme in Guinness World Records

TNN | Sep 20, 2015, 02.03 AM IST

PUNE: PAHAL, the direct benefit transfer of LPG subsidy (DBTL) scheme of the Union government, has made it to Guinness World Records.

It has become the title holder for the 'Largest cash benefit programme (households)' in the world, Bharat Petroleum Corporation Limited (BPCL) officials told TOI on Friday. BPCL had applied for the title on behalf of the Union ministry of petroleum and natural gas.

The application was approved after Guinness World Records examined the claim for compliance under stringent parameters with respect to such cash transfer programmes in countries like USA and China.

The ministry had launched the DBTL scheme, christened PAHAL (Pratyaksha Hastaantarit Laabh), in 54 districts on November 15, 2014 and in the rest of the country on January 1, 2015. Each LPG consumer has to link Aadhaar number in the LPG and the bank account database under the scheme. The consumers without Aadhaar numbers get the subsidy by linking their bank account with their LPG database.

The scheme was designed to help the consumers and, in turn, the Government of India in better subsidy management. In a short span of four months, three oil companies — BPCL, Hindustan Petroleum Corporation Limited (HPCL) and IndianOil Corporation Ltd (IOCL) — brought 80% of their consumers under the scheme. As on June 30, 2015, a total of 125.7 million consumers had joined the PAHAL scheme across India. Today, over 141 million consumers are covered under the scheme and over Rs 253 billion has been transferred to their bank accounts.

8229 - Subsidised LPG sales under DBT down by 25% - Economic Times

Subsidised LPG sales under DBT down by 25%: Arvind Subramanian

PTI Jul 2, 2015, 04.00PM IST

Subsidised LPG sales under DBT down by 25%: Subramanian

New Delhi, Jul 2 (PTI) Sales of subsidised LPG cylinders under the Direct Benefit Transfer scheme (DBT) have come down by about 25 per cent as most "ghost beneficiaries" have been eliminated, CEA Arvind Subramanian today said.

"... essentially, what we find is that on an average, the DBT scheme has reduced subsidised domestic LPG sales by about 25 per cent," Subramanian said while speaking at the UNDP conference call here.

On the fiscal impact of DBT, the Chief Economic Advisor said, "We estimate that in 2014-15, savings could be as much Rs 12,700 crore, which is a lot of money. But savings will be lower this year at around Rs 6,500 crore."

Subramanian, however, cautioned that the government should make sure genuine beneficiaries are not excluded.

"It's necessary that we don't overestimate the gain and under-recognise possible cost of doing this and in the case of DBT and Pahal, we have some preliminary evidence to suggest that a lot of it is elimination of ghost beneficiaries, but we can't rule out that there could be exclusion of genuine beneficiaries," he said.

Subramanian, formerly a senior Fellow at Peterson Institute for International Economics, admitted: "We were expecting commercial sales to go up by a huge number, but actually, this did not happen... there was only 6 per cent increase."

Under Pahal, earlier known as DBT, LPG cylinders are sold at market rates and consumers get the subsidy directly in their bank accounts. This is done either through an Aadhaar or a bank account linkage.

Pahal looks to cut down diversion and eliminate duplicate or bogus LPG connections.

The CEA added that because of schemes like Pahal, Jan Dhan and Aadhaar, institutional arrangement has improved and "things are now working".

On the crisis engulfing Greece, Subramanian said, "The (Indian) markets have come back."

7807 - How Aadhaar helped identify ineligible beneficiaries of subsidised kerosene - Indian Express

How Aadhaar helped identify ineligible beneficiaries of subsidised kerosene

At a kerosene pump in Bapudham Colony in Sector 26, Chandigarh. (Source: Express Archives)

Chandigarh | Published on:April 18, 2015 3:45 am

By: Vivek Gupta

By using UID numbers, the Food and Supplies Department has identified 35,000 families which were drawing subsidised kerosene in spite of the fact that they had LPG connections. By stopping their supply, an annual saving of Rs 5 crore has been made.

In mid-2014, the department began a survey in order to make Chandigarh kerosene-free on the pattern of Delhi, the first kerosene-free city in the country. The officials were surprised to find that the number of kerosene users was as high as 62,000, whereas in a big city like Delhi the number was not more than 1 lakh.

Soon, the Government of India introduced the Direct Benefits Transfer for LPG (DBTL) users, linking Aadhaar cards with LPG connections.

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“With the DBTL scheme, we got a way to find duplication in the system which earlier was not possible to detect due to the lack of any foolproof mechanism,” said Danish Ashraf, joint director of the Department of Food and Supplies.

The department first gathered the list of all those registered under the DBTL scheme in the city. Next, it asked kerosene depots to collect the Aadhaar numbers of ration-card holders getting kerosene.

“When we compared the two lists, common names surfaced which showed that a huge quantity of subsidised kerosene was drawn by those with LPG connections,” Ashraf said.

Under rules, those having LPG connections are not entitled to get subsidised kerosene. Therefore, names of all such consumers were struck off the list. This has brought down the number of beneficiaries from 62,000 to 17,000. Among them nearly 10,000 were those beneficiaries who had single LPG gas connection who were debarred from subsidy with effect from April 1.

“A proposal has been moved to the Central government to give subsidised LPG connections to those left in order to make the city kerosene-free,” said Ashraf. The matter is currently under consideration of the Union Ministry of Petroleum and Natural Gas.

Food Inspector Sushil Kumar said kerosene consumption in the city had come down from 7.80 lakh litre to 2.76 lakh litre per quarter. This had led to an annual saving of Rs 5 crore, since the Central government bears a subsidy of Rs 33 per litre on kerosene, which is sold to users at Rs 15 per litre.

7601 - Despite SC order, LPG consumers say dealers demand Aadhaar - TNN

Despite SC order, LPG consumers say dealers demand Aadhaar

Christin Mathew Philip, TNN | Mar 18, 2015, 03.05AM IST

CHENNAI: A day after the Supreme Court reiterated its 2013 order that Aadhaar should not be mandatory for availing government benefits, including subsidies, many LPG consumers complain that dealers continue to insist on the numbers to get subsidy.

LPG customers without Aadhaar numbers may have to submit forms 3 and 4 to register in the Direct Benefit Transfer of LPG (DBTL) scheme that is renamed Pahal. "I further confirm that I do not have an Aadhaar number as on date. As soon as I receive the Aadhaar number, I will link the same to my above bank account and the LPG distributor," the form 4 reads.

This, say many consumers, is in violation of the apex court order. " Why are they insisting on linking Aadhaar numbers to bank accounts though the Supreme Court has said it is not mandatory?" said Anupa Koshy of Thiruvanmiyur. She said dealers were denying refills to those not enrolled under Pahal.

Sources say 87% of consumers in TN have become Cash Transfer Compliant (CTC) — meaning they have joined Pahal. In Chennai, 85% are eligible to receive subsidies under it.

"The enrolment under the subsidy scheme has increased after the supply of refills to the unregistered customers was stopped," said an oil company official.

On distributors demanding Aadhaar numbers for subsidies, he said form 4 would be replaced by a unified form that will not insist on the number. "We have insisted Aadhaar numbers to eliminate multiple connections because linking of bank account number and LPG consumer number will not help us dentify the customers who have different connections. But we can detect such customer if they link their Aadhaar number with their bank account and their LPG consumer number". He said they had so far cancelled 3.05 lakh multiple connections across TN. 

Sources say backlog of LPG distribution in the city has increased from three to 15 days. The waiting list for new LPG connections in TN increased to 10,660 due to dealers being busy with Pahal.

LPG dealers confirmed there is delay in delivering cylinders to consumers in time as they have been told to get Pahal forms filled up before distribution is done. "We delivered only a few cylinders in February as most distributors were busy with Pahal," said

Officials said those not enrolled would get cylinders at market prices till June (parking period) and the subsidy transferred to their account after enrolment. Those not enrolled till June will have to purchase cylinders at market prices from July and will not be eligible for any subsidy. In Chennai, a subsidized 14.2kg domestic cylinder costs Rs 404.50 and an unsubsidized one Rs 605.50.

7495 - Direct benefits transfer for LPG consumers scheme met target for February: Dharmendra Pradhan - Economic Times

Direct benefits transfer for LPG consumers scheme met target for February: Dharmendra Pradhan

MEERA MOHANTY, 

ET Bureau Mar 3, 2015, 01.55PM IST

BHUBANESWAR: The Narendra Modi government's initiative to provide cash subsidy directly to nearly 11.5 crore consumers to allow them to buy cooking gas at market price has been a success, petroleum and natural gas minister Dharmendra Pradhan told ET.

"We had an internal target to get 80% of the customers registered, through their bank accounts or Aadhaar card, before the end of February. I share this with great joy that as of the night of 27th February, 80.1% of the customers had joined," the minister said on Sunday.

Under the Direct Benefits Transfer for LPG (DBTL) Consumers Scheme, LPG cylinders will be sold at market rates of gas while the subsidy will be deposited directly into the account of legitimate consumers to plug leakages. The exercise is expected to pave the way for other such direct transfers that should significantly reduce subsidy expenditure.

"Finance Minister Arun Jaitley, in his budget speech, had announced that this was possibly the world largest such delivery mechanism of subsidy. In the past two months, more than Rs 6,000 crore has been deposited directly into the bank accounts of customers. It's a hassle-free, transparent and consumer friendly means of passing on subsidies," said Pradhan.

The ministry as well as state-run oil marketing firms had reached out to customers with conventional advertising backed by an expansive SMS and digital campaign.

A similar exercise for kerosene subsidies may take a while longer to roll out, though, since the ministry needs the states to get their act together first.

"You must appreciate that when it comes to kerosene, we (the central government) give it lump sum to the state. It is they who decide who they want to give it to. Madhya Pradesh, Gujarat, Rajasthan, Andhra Pradesh and Karnataka are already digitising consumer data base, (linked to biometric Aadhaar cards). Once we have that ready database from the states we can similarly pass on the kerosene subsidy directly to the consumer," said the minister, who was in Bhubaneswar on Sunday for party related functions.

Even as the government announced an increase in petrol and diesel prices on Saturday in tandem with rebounding international oil prices, it may not be ready to revise excise duty any time soon.

"A substantial amount of government earning out of central tax is going towards the cess announced in the budget. The finance minister said categorically that nearly two-thirds of this would go towards infrastructure projects such as railways and roads, even rural roads - aren't good roads important to reduce oil consumption?" asked Pradhan.

7452 - Direct LPG subsidy: 25% yet to register - TNN

Direct LPG subsidy: 25% yet to register

Subhro Niyogi, TNN | Feb 26, 2015, 12.35AM IST

KOLKATA: Of the 93.23 lakh consumers in the state, one in every four is yet to register for Direct Benefits Transfer for LPG (DBTL). This, however, is a huge improvement from the situation three months ago when only 5.8% consumers were registered.

On the other hand, if you have linked your Aadhaar card with the LPG connection but are still getting cylinders at a subsidized rate, it is because no bank account has been linked to it. More than 6 lakh customers are yet to receive the subsidy directly in their bank accounts despite filling in the necessary forms.

Speaking to TOI, an Indian Oil Corporation official said that of the 74% consumers in Bengal who had registered for DBTL, 46% had submitted their Aadhaar details. However, only 39.5% have so far been linked.

Some consumers complained that though they had submitted the necessary document (Form 1) at the bank, it had since been misplaced, leading to the problem in the linking. Others said that while the bank claimed the account had been linked to Aadhaar, the LPG dealer denied it.

The petroleum ministry has thus introduced a unified form. "Any consumer who has linked their Aadhaar to the gas connection and submitted the details to the bank but has not had the account linked can give the account details to the LPG dealer. Any technical glitch will be sorted out," the official said.

For some, not getting their connections linked to bank accounts may appear easier. Cylinders continue to be delivered at the subsidized rate to these homes while others have to shell out market price during cylinder delivery. This will, however, end on March 31. From April 1, every household will get cylinders delivered at market price. Only those who have linked their accounts, Aadhaar and gas connections will get the subsidy amount credited in their accounts.

"By the time the grace period expires on March 31, we expect more than 97-98% consumers to be registered. Those who fail to do so will not be penalized immediately. They will get three months more, during which the subsidy amount will be parked with oil companies and reimbursed to the account when DBTL registration and bank linkage is done. After June 30 though, consumers will not get any retrospect benefit. He or she can avail of the subsidy only on cylinders purchased after DBTL registration," the official said.

7420 - Now U.P. to enrol 3.5 lakh people for Aadhaar everyday - The Hindu

LUCKNOW, February 20, 2015

Now U.P. to enrol 3.5 lakh people for Aadhaar everyday

SANDEEP JOSHI

With an aim of generating unique “'Aadhaar” numbers for almost 20 crore residents of Uttar Pradesh, the Unique Identification Authority of India (UIDAI) has now stepped up its drive by enrolling 3.5-lakh resident everyday and so far covering 40 per cent of the State’s population.

Aadhaar of more than eight crore residents has been generated so far.

Now, to accelerate the pace of enrolment in the state, 2,000 enrolment centres have been opened across the state where about 8000 enrolment kits have been deployed that are being operated by 66 enrolment agencies, officials in UIDAI's Lucknow regional office said.

For Uttar Pradesh, the UIDAI has initiated several steps to give impetus to the enrolment process, which includes organising training and certification camps for operating agencies. Over 2,000 operators have already been granted certification while the Authority plans to enrol more operators to speed up the process, they said.

The UIDAI's Lucknow office is also keeping a close eye on all the enrolment centres and taking strict action against operators who are trying to take money for enrolment or not carrying out the process smoothly. Already several erring agencies have been blacklisted, while strict vigilance was being kept of the entire process. 

The UIDAI is also carrying out awareness drive telling people not to pay money for Aadhaar enrolment and lodge a compliant if any agency asks for money, officials said.

Uttar Pradesh being the biggest State, the Centre is more focused on early completion of the Aadhaar enrolment which is directly linked to various schemes and initiatives, including the Pradhan Mantri Jan Dhan Yojana (PMJDY), the Mahatma Gandhi Rural Employment Guarantee Scheme (MGNREGS), Direct Benefit Transfer of LPG Subsidy (DBTL), Universal Account Number (UAN) of Employees’ Provident Fund Organisation (EPFO), public distribution system (PDS), pensions and scholarships, passports and attendance in government offices.

7414 - Submit EPIC, Aadhaar details, ration card applicants told - Deccan Herald

Submit EPIC, Aadhaar details, ration card applicants told

Mangaluru., Feb 19, 2015, DHNS

Deputy Commissioner A B Ibrahim has said all those who have submitted applications for new ration cards and have failed to submit Elector’s Photo Identity Card (EPIC)/Aadhaar details, should furnish details within 15 days.

Briefing reporters, on Wednesday, he said if they fail to furnish details, then applications will be rejected without any intimation.

Food and Civil Supplies Department in Dakshina Kannada District has received 77,670 applications seeking new ration cards. Of which, 17,232 applications are yet to be disposed of and 5,976 applicants have furnished EPIC details. The remaining 11,256 applicants have failed to furnish EPIC details. Without furnishing EPIC details, ration cards cannot be generated and distributed. Those who have failed to furnish details should do so at Mangalore One/Photo Centre or respective gram panchayats within 15 days. 

In Mangaluru non-rationing areas, around 4,000 APL ration cards are lying unattended at the office. Though the department has already intimated the concerned applicants through SMS/phone call, they have not come to collect the ration cards. A member of the family can collect the ration cards from the office. If they fail to collect within time frame, then such ration cards will be suspended, he warned.

Free LPG connections
Food & Civil Supplies Deputy Director Sharanabasappa said the government has okayed free LPG connections to 6,100 BPL card holders through urban local bodies in Dakshina Kannada districts under Corporate Social Responsibility (CSR) fund scheme of public sector oil companies.

The beneficiaries will get the LPG connections without any security deposit. The beneficiaries have to furnish the photocopy of the bank pass book, photographs to the nearest LPG dealers to avail the facilities.

The deadline for providing LPG connection to the beneficiaries is March 31.
However, the beneficiaries will have to pay  for gas stove, regulator, lighter and the pipe. Those beneficiaries who fail to collect the LPG connections within the time frame, will not get kerosene through PDS.

He said as per the directions of the government, the list of all BPL card holders have been published outside all 488 PDS in Dakshina Kannada district. If any non beneficiary is included in the list of BPL card holders, then the public can bring the issue to the notice of the food and civil supplies department. All those ration card holders who have failed to link Aadhaar unique identity card or the Election Photo Identity Card (EPIC) numbers with the ration cards have to furnish the details through a form which is available at the PDS.
He said that 73 per cent of the LPG consumers in Dakshina Kannada district have been covered under Direct Benefit Transfer scheme for LPG. Bengaluru Urban district is at the bottom of the list, as far as the district-wise coverage of the scheme is concerned.
The oil company representatives said that around 200 consumers in Dakshina Kannada district have said no to the subsidy for LPG cooking gas cylinders.

7411 - High compliance to direct transfer of LPG subsidy scheme - The Hindu

HYDERABAD, February 18, 2015

Updated: February 18, 2015 05:42 IST

High compliance to direct transfer of LPG subsidy scheme

N. RAVI KUMAR

Close to 93 per cent of consumers or about 30 lakh families across Hyderabad, Ranga Reddy and Adilabad districts using subsidised liquefied petroleum gas have joined the modified-DBTL scheme.

By going through the process, of linking their cooking gas connection and bank account details and eventually this combo with Aadhaar number, they have ensured against missing out on LPG subsidy.

Under the M-DBTL (direct benefit transfer of LPG subsidy) scheme, the grace period to link the accounts as also to get LPG cylinders at subsidised price got over on February 14.

The three districts were part of 54 such across 11 States where the scheme was rolled out in November.

“They have become cash transfer compliant (CTC),” declares M.B. Ingole, State-level coordinator-LPG of the three oil companies.

HPCL, IOC and BPCL together have 31.61 lakh domestic LPG customers in the three districts.

Within the 93 per cent, only a small number of households are yet to link their Aadhaar, something, he says, could be because they have applied and yet to receive the ID number.

On the remaining seven per cent, he said their deadline ends May 15. “We are only selling non-subsidised cylinder (in the three districts),” he says, explaining that consumers yet to come onboard need to pay the non-subsidised price of Rs.675 per refill.

The CTC customer also purchases the cylinder at market price, he/she gets the subsidy money in his bank, while others need to become compliant to get the benefit.

In the ‘parking’ period till mid-May, the subsidy for non-CTC users will be kept in a separate account and paid once they join. Beyond mid-May, they are not eligible until they join.

In the remaining seven districts of Telangana, as also rest of the country, the M-DBTL was launched on January 1. Consumers at these locations too get three months each of grace period and parking period.

“It is around 84 per cent,” says Mr. Ingole on the progress of the scheme in the seven districts. LPG customer base of the companies in the State is 66.85 lakh.

Stating that many customers tend to wait till the last date, he said the process could be speeded up by banks becoming more proactive.

Nearly 30 lakh households in Hyderabad, R.R., Adilabad districts onboard

7410 - ‘Link gas number to Aadhar card, bank account in next 15 days’ - TNN

‘Link gas number to Aadhar card, bank account in next 15 days’

B B Nayak, TNN | Feb 18, 2015, 02.07AM IST

THANE: District collector Ashwini Joshi has asked gas dealers and banks to complete the process of linking Aadhaar cards to gas consumer numbers within the next 15 days in order to extend the direct benefit transfer on LPG to consumer. Consumers have been asked to come forward and get themselves included.

Joshi has also warned gas consumers that they would be deprived of subsidized cylinders if they failed to get their Aadhaar cards linked with the gas number. Thane district has over 17.21 lakh consumers who use cylinders, out of these 11.43 lakh have got linked under the direct benefit scheme.

Joshi also held a review meeting with representatives of state-owned oil companies and bankers in order to acquire cent percent results. ''So far, 11.43 lakh consumers have been linked to the scheme and they have already started reaping its benefits. Those unwilling to provide the bank with their Aadhaar number will be deprived of the benefits,'' said Joshi.

The ambitious scheme harps of giving cash subsidy on cooking gas to consumers, making it the world's largest direct benefit transfer. This began in November, last year. According to the scheme, a cash subsidy is paid to consumers so that they can buy cooking gas at the market price. Currently, a subsidized LPG cylinder costs Rs 451 per 14.2 kg, while the market price is Rs 752.

7408 - FinMin: All Central schemes should adopt DBT from April - Indian Express

FinMin: All Central schemes should adopt DBT from April

Written by Surabhi | New Delhi | February 18, 2015 2:32 am

In a significant ramp-up of the direct benefit transfer programme, the finance ministry has said electronic transfers must be made to beneficiaries of all schemes where that involve any kind of cash benefits.

Accordingly, all ministries have been asked to use DBT for all Central sector as well as Centrally sponsored schemes from April.

The move would significantly widen the scope of the two-year old DBT that was launched in from January 2013 but is confined to just 28 schemes involving cash transfers for scholarships and pensions. The Centre has now also begun to roll out modified DBTL or Pahal for transfer of cooking gas subsidy directly into beneficiaries accounts.

“For greater and universal impact on efficiency in delivery of benefits, their timeliness, along with accurately targeting of the intended beneficiaries, it is imperative that DBT may be extended beyond the transfers to the Centre directly to individuals to all schemes or projects that have any component of cash benefits transfer to individual beneficiaries, from levels other than Central…from state or district of sub-district level or government or non-government agencies,” the department of expenditure has said in a missive to all government ministries.

In the case of Central sector schemes, the finance ministry has asked all departments to transfer funds electronically to all individuals and institutions. It has directed that a digitised list of all beneficiaries must be made and seeded with Aadhaar numbers by June 30. “E-transfer of funds will start in all (central) schemes not later than April, 2015,” the ministry has stressed.

Similarly, for all CSS schemes, the Central ministry will transfer funds to the state governments and work with states to transfer the cash component of each scheme to beneficiaries electronically.

For these schemes, ministries have to prepare a digitised list of beneficiaries by 30 March 2015 that should be seeded with 100 per cent Aadhaar numbers by June 30.

Cash transfer would be made by Public Financial Management Systems of the Controller General of Accounts or NEFT, the finance ministry said.

7407 - Cash Transfer Directly To Payee Through Banks On Aadhaar Basis To Start By April -

Cash Transfer Directly To Payee Through Banks On Aadhaar Basis To Start By April

New Delhi: Central government will start cash transfer directly to payee through banks on Aadhaar basis by April.

Finance Secretary Rajiv Mehrishi

The Finance Ministry, in an office memorandum, said it is imperative that Direct Benefit Transfer (DBT) may be extended beyond the transfers from the Centre directly to payees to all schemes and projects that have any component of cash benefits transfer to individual beneficiaries.

“Ministry/Department will prepare a digitised list of all beneficiaries for the same. The list will be populated with Aadhaar number by June 30, 2015. E-transfer of funds will start in all schemes not later than April, 2015. The deadline for this task would be April 30, 2015,” it said.

The architecture and framework for direct cash transfers was put in place for rolling out direct cash transfers across the country. Initially few schemes, like scholarships, pensions and other benefits were taken up in selected districts in the first phase.

Presently, Direct Benefit Transfer (DBT) in 35 schemes and DBTL (PAHAL) have been expanded across the entire country.

Meanwhile, CRISIL said DBT will likely prove to be a game changer in food subsidy.

“We estimate that DBT could help the government save as much as 20 per cent (or Rs 25,000 crore) in food subsidy expenditure by eliminating costs associated with procuring, distributing and storing foodgrains,” it said.

Moreover, it said DBT will help bring millions of poor households that currently do not have access to PDS into the food subsidy net.

“We estimate that at fiscal 2016 prices, the cash transfers under the DBT will amount to almost Rs 5,800 per year for a family of five, which will implicitly raise their disposable income,” CRISIL added.

Inputs with PTI