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 due to linking of 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. Then in January 2015, 622 districts were covered in Phase II. Later the scheme has been extended to all over the country and as on 01.02.2021, 27.08 crore LPG consumers have joined the scheme.

• 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.
• 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.

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.
• The consumers are not getting subsidy in the advance amount.
• There is a huge mismatch in data banks due to non- completion of the linking process and wrong data entry.

Possibilities and Prospects

• The Schemes must focus on the removal of ambiguities in beneficiary’s data.
• The problems in linking of Aadhar with the bank account must be addressed as soon as possible.
• The Give it up campaign should not be only on the voluntary basis but the government should make it mandatory for those who can afford to pay.