PAHAL Scheme

The Indian government has successfully deactivated more than 4 crore duplicate or inactive LPG connections under the PAHAL direct benefit transfer (DBT) scheme, as reported by the Petroleum Minister in a recent Parliament session.

About PAHAL Scheme

The PAHAL (Pratyaksh Hanstantrit Labh) scheme, launched by the Ministry of Petroleum and Natural Gas, is India's Direct Benefit Transfer (DBT) system for LPG subsidies. Under this scheme, subsidies for LPG are transferred directly into the bank accounts of consumers instead of the government providing subsidized cylinders directly.

• Key Features:

  • Consumers pay the market price for LPG cylinders and the government transfers the subsidy amount to their linked bank accounts.

  • The scheme covers over 17 crore LPG consumers, making it the largest cash transfer program globally.

PAHAL Scheme Objectives

The PAHAL Scheme was designed to achieve several important goals:

1. Ensures Transparency:

   • It eliminates intermediaries, ensuring that consumers directly receive the benefits.

2. Prevents Diversion:

   • The scheme removes incentives for the diversion of subsidized LPG cylinders.

3. Protects Consumer Entitlements:

   • The direct transfer of subsidies ensures that genuine consumers receive their entitled subsidies without any disruption.

4. Improves Availability and Delivery:

   • It enhances the availability and delivery of LPG cylinders to genuine consumers.

5. Eliminates Fake Connections:

   • By deactivating fake or duplicate connections, the scheme ensures that subsidies are only received by actual users.

6. Provides Self-Selection:

   • Consumers can select whether to avail themselves of the subsidy or not, promoting self-selection.

PAHAL Scheme Eligibility

To be eligible for the PAHAL scheme, the applicant must meet the following criteria:

1. LPG User:

   • The applicant must be an active LPG user.

2. Income Criterion:

   • The combined taxable income of the applicant and their spouse should not exceed ₹10,00,000 in the previous financial year, as per the Income Tax Act, 1961.

How the PAHAL Scheme Works

1. Booking Process:

   • Consumers book an LPG cylinder at the market price.

2. Subsidy Transfer:

   • Once the cylinder is delivered, the subsidy amount is credited directly into the linked bank account of the consumer.

3. Two Types of Consumers:

   • Primary Aadhaar-Based DBT: Where the Aadhaar number is linked with both the LPG consumer number and the bank account.

   • Alternative (Non-Aadhaar-Based): Where the bank account is directly linked with the LPG consumer number if Aadhaar linking is not available.

Conclusion

The PAHAL scheme remains a critical tool in enhancing transparency and ensuring that subsidies reach the right people. With 17 crore consumers benefiting, the scheme stands as the world's largest cash transfer program for LPG subsidies, improving the efficiency and availability of LPG across India.