Pratyaksh Hanstantrit Labh (PAHAL)

The scheme was first launched on June 1, 2013 as Direct Benefit Transfer Scheme for LPG and it initially covered 291 districts. However, several customers faced issues with linking their Aadhar card to their banks accounts. The scheme was re-launched as PAHAL, was made available in 54 districts by November 2014 as a part of Phase I. Later in January 2015, 622 districts were covered in Phase II.

  • The government launched this scheme in order to benefit genuine domestic LPG cylinder users without having it diverted. The aim was to ensure better management of the subsidy and reduce burden to the exchequer.
  • The scheme has been acknowledged as the world’s largest cash transfer programme (households) by the Guinness Book of World Records.
  • Under the scheme, subsidized liquefied petroleum gas (LPG) cylinders are sold at market rates and consumers are entitled to receive LPG subsidy directly into their bank accounts. It is done either through bank account or Aadhaar linkage. Currently it covers more than 9.75 crore LPG consumers across the country.
  • The Government has launched the ‘#GiveItUp’ Campaign which is aimed at motivating LPG users who can afford to pay the market price for LPG to voluntarily surrender their LPG subsidy. This scheme was marked as success as many of the able consumers voluntarily gave up the subsidy on LPG cylinders.

Challenges

  • Banks are still lagging behind in linking LPG IDs with bank accounts under the PAHAL scheme where the LPG subsidy will be directly transferred to bank accounts of consumers. Also, the consumers are not getting subsidy in the advance amount. And there is a huge mis-match of data banks not completing the linking process and wrong data entry.

Ways to Improve

  • The Schemes must focus on the removal of ambiguities in beneficiary’s data. Also the linking problem of Aadhar with the bank account must be curtailed as soon as possible. The Give it up campaign also should not be only on the voluntary basis but the government also check the data available and reduce more number of subsidiaries.

Related Content