Lok Sabha Question No. 365 (STARRED), answered on 2016-12-12
Subject: DBTL Scheme
Ministry: PETROLEUM AND NATURAL GAS
Asked by: POONAMBEN HEMATBHAI MAADAM

## LOK SABHA

## STARRED QUESTION NO. 365 TO BE ANSWERED ON 12 TH  DECEMBER 2016

## DBTL SCHEME

## *365. SHRIMATI POONAMBEN MAADAM:

पेट्रोलियम एवं प्राक ृ लिक गैस मंत्री

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state :

- (a) the mechanism/guidelines prescribed for the Direct Benefit Transfer  Scheme (DBTL)/PAHAL for LPG consumers along with the aims and objectives of the scheme;
- (b)  the  extent  to  which  the  scheme  has  been  successful  in  achieving  its  aims  and objectives;
- (c)  whether the DBTL subsidy scheme has been helpful/successful in curbing fraudulent LPG distribution system; and
- (d) if so, the details thereof along with the number of fraudulent connections identified and cancelled and the quantum of subsidy saved as a result thereof, State/ UT-wise?

## ANSWER

पेट्रोलियम एवं प्राक ृ लिक गैस मंत्रािय में राज्य मंत्री ( स्विंत्र प्रभार ) ( श्री धमेंद्र प्रधान )

MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF PETROLEUM & NATURAL GAS (SHRI DHARMENDRA PRADHAN)

- (a)  to  (d) A statement is laid on the Table of the House.

STATEMENT REFERRED TO IN REPLY TO PARTS (a) to  (d)  OF  THE  LOK  SABHA STARRED  QUESTION  NO.  365  BY  SHRIMATI  POONAMBEN  MAADAM  TO  BE ANSWERED ON 12 TH   DECEMBER 2016 REGARDING 'DBTL SCHEME '.

- (a) LPG consumers, who join the PAHAL scheme, get the LPG cylinders at non-subsidised price and receive LPG subsidy (as per their entitlement) directly into their registered bank accounts. LPG consumers are required to become Cash Transfer Compliant (CTC) after seeding  their  bank  accounts  and  Aadhaar  number  to  receive  LPG  subsidy  in  their registered bank account under PAHAL Scheme. The main objectives of the Scheme are to eliminate supply chain leakages and unauthorised usage by curbing multiple connections by way of Aadhaar based de-duplication.
- (b) to (d) An intensive exercise was carried out for identifying duplicate/fake/ghost/inactive domestic  LPG  connections  and,  as  of  01.04.2015,  3.34  crore  such  connections  were identified by the Oil Marketing Companies (OMCs). As a result of implementation of DBTL (PAHAL) mechanism, it became possible to block these 3.34 crore LPG connections as the subsidy was transferred in the accounts of only those consumers who had registered under PAHAL and who have been cleared after de-duplication exercise. Before DBTL, all or  many  of  these  3.34  crore  consumers  would  have  continued  to  purchase  subsidized cylinders  from  the  distributors.  But  for  the  blocking  of  these  accounts,  the  subsidy  bill would have been much higher despite fall in crude oil prices. Estimated savings from the above efforts are calculated as follows :-

For the financial year (FY) 2014-15, for 3.34 crore consumers outside the PAHAL net, the estimated savings would be 3.34 crore x 12 cylinders x Rs. 369.72 (average subsidy/cylinder for FY 2014-15) equal to Rs. 14,818.4 crore. Following a similar principle, the savings estimated for FY 2015-16 is Rs. 6443 crore and the total for both the years works out to Rs. 21,261 crores.

| Financial Year   | Average Subsidy per Cylinder (for that year)   | Calculations       | Estimated Savings (in crores of rupees)   |
|------------------|------------------------------------------------|--------------------|-------------------------------------------|
| 2014-15          | Rs. 369.72                                     | 3.34 x 369.72 x 12 | 14,818.4                                  |
| 2015-16          | Rs. 150.82                                     | 3.56 x 150.82 x 12 | 6,443                                     |
|                  | TOTAL                                          | TOTAL              | 21,261.4                                  |

The  total  consumption  of  cooking  gas  in  any  given  year  is  a  combination  of  the number of connections at the beginning of the year, bogus connections eliminated during the year through the process of DBT under PAHAL, new connections issued to genuine consumers during the year and normal fluctuations in individual consumption. Hence, the saving from implementation of DBT cannot be correctly computed merely by reference to the total consumption in a year or the total expenditure on subsidy.  If the DBT had not been implemented, the outgo on the subsidy would have been higher by Rs. 14,818 crore in 2014-15 and Rs. 6,443 crore in 2015-16. Hence, the total savings from the elimination of fake/duplicate/ghost  connection  as  a  result  of  implementation  of  DBT  for  the  two  years together, as calculated above, is estimated at more than Rs. 21,000 crore. This figure is not comparable with the actual expenditure on subsidy which includes the subsidy on new genuine  connections  given  during  these  two  years.  Without  implementation  of  PAHAL, subsidy burden would have been higher than the actual expenditure recorded during these years, even with lower petroleum prices.

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