Setting the stage for a major reform in the subsidy system in the country, a government-constituted task force has recommended transfer of cash directly into the bank accounts of the beneficiaries of subsidised LPG, kerosene and fertiliser to curb pilferage and leakage
The customers’ aadhaar enabled bank account details will be used to transfer the subsidy. The customers will buy all cylinders at market price while the government will fix the subsidy per cylinder.
The OMCs will sell LPG at the market price and the subsidy amount will be directly transferred from the government to the customers in the subsequent phases. The Task Force recommended direct transfer of subsidy through state governments or Union territory administrations and finally to the beneficiary in three different phases.