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LATEST NEWS UPDATES | Government says Rs 21,000 crore saved in LPG subsidy under DBT scheme

Government says Rs 21,000 crore saved in LPG subsidy under DBT scheme

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published Published on Jul 20, 2016   modified Modified on Jul 20, 2016
-The Times of India

NEW DELHI: The government on Wednesday said that close to Rs 21,000 crore was saved in two years by directly transferring subsidy (DBT) to user bank accounts.

The savings are largely from the elimination of fake/ghost/duplicate/inactive domestic LPG connections. Over 3.34 crore of these connections were done away with after the implementation of DBT. According to government calculations, 3.34 crore blocked consumers would have used up Rs 14,818.4 crore of subsidy considering average subsidy of Rs 368.72 per cylinder in 2014-15. This is on the basis of providing 12 subsidized cylinders per household per year. Similarly, the savings estimate for 2015-16 is Rs 6,443 crore.

"As a result of implementation of DBT for LPG (or PAHAL) mechanism, it became possible to block these 3.34 crore LPG connnections as the subsidy was transferred in the accounts of only those consumers who had registered and who have been cleared after de-duplication exercise," a statement from the Oil Ministry read. "Before DBTL, all or may of these 3.34 crore consumers would have continued to purchase subsidised cylinders from the distributors. But for the blocks of these accounts, the subsidy bill would have been much higher despite fall in crude oil prices."

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The Times of India, 20 July, 2016, http://timesofindia.indiatimes.com/india/Government-says-Rs-21000-crore-saved-in-LPG-subsidy-under-DBT-scheme/articleshow/53305420.cms


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