PAHAL (Pratyaksh Hanstantrit Labh) scheme

The Direct Benefit Transfer of LPG (DBTL) or PAHAL (Pratyaksh Hanstantrit Labh) scheme was earlier launched on June 1, 2013 and finally covered 291 districts.  It required the consumer to mandatorily have an Aadhaar number for availing LPG Subsidy. The government has comprehensively reviewed the scheme and after examining the difficulties faced by the consumer substantively modified the scheme.  The modified scheme is being re-launched in 54 districts on 15.11.2014 in the 1st Phase and in the rest of the country on 1.1.2015.

Pratyaksh Hanstantrit Labh ( PAHAL scheme ) : Options to receive LPG subsidy

• Under the modified scheme, the LPG consumer can now receive subsidy in his bank account by two methods. Such a consumer will be called CTC (Cash Transfer Compliant) once he joins the scheme and is ready to receive subsidy in the bank account. The two options are:
• Option I (Primary): Wherever Aadhaar number is available it will remain the medium of cash transfer. Thus, an LPG consumer who has an Aadhaar Number has to link it to the bank account number and to the LPG consumer number.
• Option II (Secondary): If LPG consumer does not have an Aadhaar number, then he can directly receive subsidy in his bank account without the use of Aadhaar number. This option which has now been introduced in the modified scheme ensures that LPG subsidy is not denied to an LPG consumer on account of lack of Aadhaar number. In this option,
• Present bank account information (bank account holder name /account number /IFSC code) to the LPG distributor for capture in LPG database
  OR
• Present LPG consumer information (17 digit LPG consumer ID) to his bank
• LPG Consumers who are already CTC prior to launch on PAHAL (DBTL)
• Domestic LPG Consumer who had already joined the earlier PAHAL (DBTL) scheme by linking their Aadhaar to bank and LPG database don’t need to take fresh action for receiving subsidy as the subsidy will be transferred to their bank accounts via Aadhaar based on the previous seeding. Such CTC consumers cannot exercise Option II above.
• Pricing under PAHAL (DBTL)
• In the PAHAL (DBTL) district(s), domestic LPG cylinders will be sold to CTC domestic LPG consumers at Market Determined Price (does not include subsidy) from the date of launch of the scheme.
  Amount transferred to consumer
  The total cash applicable on LPG cylinder will then be transferred to the CTC consumer for each subsidized cylinder delivered (up to the cap) as per his entitlement.
  Grace Period
  Non-CTC consumers will be allowed 3 months from the date of launch of PAHAL (DBTL) to become CTC. During this period such consumers will receive their entitlement of subsidized cylinders at the then applicable subsidized retail selling price.

Parking Period

• After the grace period of 3 months, all non-CTC LPG consumers will get an additional 3 month Parking Period, during which the sale will happen at Market Determined Price for all LPG consumers.
• But for non-CTC consumers the total cash on the sale made to such consumers (as per their entitlement) shall be held back with the respective OMC to be transferred to the LPG consumers’ bank account in case consumer becomes CTC anytime during the Parking Period.
• In case consumer does not become CTC during this Parking Period, the parked funds will lapse and consumer shall become ineligible to receive the parked funds and sale will continue at market determined price till consumer becomes CTC.

After the expiry of the Grace Period of 3 months, and thereafter an additional Parking Period of 3 months, all non-CTC consumers will receive cylinders at marker determined price and will not be entitled to total cash until they become CTC. When non-CTC consumers become CTC beyond the parking period they will be eligible to get one time permanent advance and total cash entitlement on balance subsidized cylinders in that financial year.

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Permanent Advance

• A one-time Advance will be provided to every CTC consumer joining PAHAL (DBTL).
• The Advance will be notified, from time to time and will remain fixed for a financial year.
• It will remain with the consumer till the time of termination of connection, when it will be finally adjusted.
• LPG consumers who were provided permanent advance on a previous scale will not be eligible for any differential payment on account of the revision in the permanent advance.