PAHAL Scheme Benefits, PAHAL Scheme Details, PAHAL Scheme Forms

PAHAL Scheme is an attempt to change the mechanism of transferring subsidies launched by Government of India on 1 January 2013. This program aims to transfer subsidies directly to the people through their bank accounts. Here are the Details & Benefits.


PAHAL Scheme Benefits, PAHAL Scheme Details, PAHAL Scheme Forms

PAHAL Scheme, Direct Benefits Transfer for LPG (DBTL) Consumers has been introduced to curb the diversion of the subsidized LPG. Under the scheme, Consumers will pay the market price for the domestic cylinder and the subsidy will be transferred directly to their bank account. This removes the incentive to divert the domestic LPG cylinders, which moved in the supply chain at almost half of their real market price. PAHAL Scheme was launched on 1st June 2013 and finally covered 291 districts. It required the consumer to mandatorily have an Aadhaar number for availing LPG Subsidy.

The modified scheme has been re-launched in 54 districts on 15.11.2014 in the 1st phase and in the rest of the country on 01.01.2015. This not only will prevent diversion but also will allow us to detect duplicate connections against the same individual.

Objective of PAHAL Scheme

Following are the key objectives of the scheme:

  • Remove incentive for diversion.
  • Protect entitlement and ensure subsidy to the consumer.
  • Improve the availability/delivery of LPG cylinders for genuine users
  • Weed out fake/duplicate connections
  • Allow Self Selection in subsidy

Benefits of PAHAL Scheme

Launch of PAHAL (DBTL) will reduce subsidy burden due to:

  • Elimination of supply chain leakages and unauthorized usage
  • Allow consumers to opt out of subsidy, and
  • Reduction in multiple connections by way of Aadhar based De-duplication.

Improvement in public service delivery

  • LPG Consumers get LPG subsidy in cash directly in their bank account automatically
  • With removal of incentive for diversion, the entitlement will be protected
  • Improved availability of new LPG connections in the market
  • Reduction in back-log due to reduced diversion

Options to receive LPG subsidy

Under the modified scheme, the LPG consumer can receive subsidy in his bank account by two methods. Such a consumer will be called CTC (Cash Transfer Compliant) once he joins the scheme and is ready to receive subsidy in the bank account. The two options are:

Option I (Primary): Wherever Aadhar number is available it will remain the medium of cash transfer. Thus, an LPG consumer who has an Aadhar Number has to link it to the bank account number and to the LPG consumer number.

Option II (Secondary): If LPG consumer does not have an Aadhar number, then he can directly receive subsidy in his bank account without the use of Aadhar number. This option which has been introduced in the modified scheme ensures that LPG subsidy is not denied to an LPG consumer on account of lack of Aadhar number. In this option,

Either consumer can

  • Present bank account information (bank account holder name /account number /IFSC code) to the LPG distributor for capture in LPG database
  • Present LPG consumer information (17 digit LPG consumer ID) to his bank

Download Application Forms

PAHAL Scheme’s Detailed Documentation


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