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Published on:
February 14, 2023
By
Prudhvi Raj

PAHAL (Pratyaksha Hastaantarit Laabh)

PAHAL (Pratyaksha Hastaantarit Laabh), also known as the Direct Benefit Transfer for LPG (DBTL), is a government scheme launched by the Ministry of Petroleum and Natural Gas in India. The main aim of this scheme was to provide subsidies for liquified petroleum gas (LPG) to eligible households directly into their bank accounts, in order to reduce the number of fake or duplicate LPG connections and to improve the transparency of the subsidy distribution process.

Under the scheme, LPG consumers were required to link their Aadhaar number with their bank account and LPG connection in order to receive the subsidy amount directly. The subsidy amount would then be credited to the bank account of the LPG consumer on the purchase of each cylinder, reducing the overall cost of the cylinder for the consumer.

The PAHAL (DBTL) scheme was launched in 2013 and has since been implemented across the country. The scheme has been successful in reducing the number of fake LPG connections and improving the transparency of the subsidy distribution process.

1. Objectives of PAHAL:

The main objectives of the PAHAL (DBTL) scheme are:

A. To reduce subsidy leakages: 

The direct transfer of subsidies into the bank accounts of eligible households helps reduce leakages and ensures that the subsidies reach their intended beneficiaries.

B. To improve transparency: 

The PAHAL (DBTL) scheme helps improve the transparency of the subsidy distribution process by eliminating the intermediaries involved in the distribution of subsidies.

C. To reduce corruption: 

The direct transfer of subsidies into the bank accounts of eligible households helps reduce the scope for corruption and improves the overall accountability of the subsidy distribution process.

D. To reduce the number of fake LPG connections: 

The linking of Aadhaar numbers with LPG connections and bank accounts helps to reduce the number of fake or duplicate connections and ensures that the subsidies are provided only to eligible households.

E. To promote digital transactions:

By linking LPG subsidies with bank accounts, the PAHAL (DBTL) scheme promotes digital transactions and helps to move towards a cashless economy.

F. To improve the accessibility of LPG:

The direct transfer of subsidies helps to improve the affordability of LPG for eligible households and makes it more accessible to a larger number of people.

2. Benefits of PAHAL:

The PAHAL (DBTL) scheme provides several benefits to the beneficiaries, including:

A. Direct transfer of subsidies: 

The direct transfer of subsidies into the bank accounts of eligible households ensures that the subsidies reach their intended beneficiaries without any intermediaries.

B. Reduction in subsidy leakages: 

By reducing the intermediaries involved in the distribution of subsidies, the PAHAL (DBTL) scheme helps reduce the number of subsidy leakages and improves the overall accountability of the subsidy distribution process.

C. Improved transparency:

The direct transfer of subsidies into the bank accounts of eligible households helps improve the transparency of the subsidy distribution process and eliminates the scope for corruption.

D. Reduced fake LPG connections:

The linking of Aadhaar numbers with LPG connections and bank accounts helps to reduce the number of fake or duplicate LPG connections and ensures that the subsidies are provided only to eligible households.

F. Promotion of digital transactions:

The PAHAL (DBTL) scheme promotes digital transactions and helps to move towards a cashless economy.

G. Improved affordability of LPG: 

The direct transfer of subsidies into the bank accounts of eligible households helps to improve the affordability of LPG and makes it more accessible to a larger number of people.

H. Convenience and ease of access: 

Beneficiaries no longer have to visit government offices or go through intermediaries to receive their subsidies, as the subsidies are directly credited to their bank accounts on the purchase of each LPG cylinder.

3. Pricing Under PAHAL (DBTL) Scheme:

Under the PAHAL (DBTL) scheme, the pricing of LPG cylinders remains unchanged for the consumers. The government provides a subsidy on the cost of each cylinder to eligible households, which is directly credited to their bank accounts. The subsidy amount reduces the overall cost of the cylinder for the consumer.

The pricing of LPG cylinders is determined by market forces and is subject to change based on various factors such as the international price of crude oil and the exchange rate. The government provides the subsidy to eligible households to make LPG more affordable for them.

It's important to note that the PAHAL (DBTL) scheme only affects the subsidy component of the LPG cylinder price. The market price of the cylinder remains unchanged and is determined by market forces.

4. Options to Receive LPG Subsidy Under PAHAL (DBTL) Scheme:

Under the PAHAL (DBTL) scheme, there are two options for beneficiaries to receive the LPG subsidy:

A. Bank account transfer:

Beneficiaries can receive the LPG subsidy directly into their bank account by linking their Aadhaar number with their bank account and LPG connection. The subsidy amount is credited to the bank account of the beneficiary on the purchase of each LPG cylinder.

B. PAHAL (DBTL) Aadhaar card:

 Beneficiaries who do not have a bank account can receive the LPG subsidy through the PAHAL (DBTL) Aadhaar card. Under this option, the subsidy amount is credited to the Aadhaar-linked PAHAL (DBTL) card, which can be used to purchase LPG cylinders at the market price. The subsidy amount is automatically deducted from the market price of the cylinder at the time of purchase.

It's important to note that the PAHAL (DBTL) scheme is optional, and beneficiaries can choose to opt out of the scheme if they prefer to purchase LPG cylinders at the market price without the subsidy. However, to receive the subsidy, beneficiaries must have a valid Aadhaar number and must link it with their bank account and LPG connection.

5. Procedure to Apply for PAHAL (DBTL) Scheme:

The procedure to apply for the PAHAL (DBTL) scheme is as follows:

A. Link Aadhaar number with bank account: 

The first step in applying for the PAHAL (DBTL) scheme is to link your Aadhaar number with your bank account. This can be done by visiting the bank branch where you have an account, or by using the online facility provided by your bank.

B. Link Aadhaar number with LPG connection:

The next step is to link your Aadhaar number with your LPG connection. This can be done by visiting your LPG distributor or by contacting your LPG company.

C. Submit KYC documents: 

Once your Aadhaar number is linked with your bank account and LPG connection, you need to submit the required KYC (Know Your Customer) documents to your bank. This may include a photocopy of your Aadhaar card, PAN card, and address proof.

D. Receive subsidy: 

After completing the above steps, you will start receiving the LPG subsidy directly into your bank account on the purchase of each LPG cylinder. The subsidy amount will be automatically deducted from the market price of the cylinder at the time of purchase.

It's important to note that the above procedure may vary slightly based on the specific bank and LPG company you are dealing with. You can contact your bank and LPG company for more detailed information on the application procedure for the PAHAL (DBTL) scheme.

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Updated on:
March 16, 2024