Government to implement DBT Scheme for Kerosene in 33 District from April 1

The Minister of State (I/C) for Petroleum & Natural Gas Dharmendra Pradhan informed the Rajya Sabha in a written reply today that Government has announced implementation of Direct Benefit Transfer (DBT) in Kerosene w.e.f. 01.04.2016 in 33 districts identified by 9 State Governments namely, Chhattisgarh, Haryana, Himachal Pradesh, Jharkhand, Madhya Pradesh, Maharashtra, Punjab, Rajasthan and Gujarat.

Where the scheme for direct transfer of subsidy is introduced, the consumer will pay the non-subsidized price of kerosene at the time of purchase. Subsequently, the amount of subsidy will be directly transferred to the bank account of the beneficiary.

To avoid any inconvenience to the beneficiary during the initial purchase through payment of non-subsidized price, an initial amount of subsidy shall be credited to all eligible beneficiaries. As a part of this scheme, implementing States will be given fiscal incentives equivalent to 75 % of subsidy saved in the first two years, 50 % of subsidy saved in third year and 25 % of subsidy saved in 4th year. The Ministry is also in touch with other States for them to join the DBTK Scheme.