The Minister of State for Petroleum & Natural Gas Shri Dharmendra Pradhan informed the Lok Sabha in a written reply on Monday that the Government has authorized the Oil Marketing Companies (OMCs) to increase the Retail Selling Prices of PDS Kerosene by 25 paise per litre per month (excluding VAT as applicable in different States/Union Territories) for 10 months.
With a view to reach the PDS kerosene to the targeted beneficiaries, it has been decided to implement Direct Benefit Transfer in Kerosene (DBTK) during 2016-17 in 39 districts identified in consultation with State Governments spread across nine States of the country, namely; Punjab, Gujarat, Himachal Pradesh, Madhya Pradesh, Chhatisgarh, Rajasthan, Jharkhand, Haryana and Maharashtra. Other States/UTs have also been requested to join the Scheme.
It has also been decided that the States would be given cash incentive of 75% of subsidy savings during the first two years, 50% in the third year and 25% in the fourth year. In case the States voluntarily agree to undertake cuts in kerosene allocation, beyond the savings due to DBT, a similar incentive would be given to those States/UTs. Preparation to implement DBTK by the participating States is reviewed regularly.