Government of India has decided to extend the Direct Benefit Transfer for LPG (DBTL) Scheme in 235 more districts by 1.1.14 in phases depending on Aadhaar penetration. With this roll out almost half the country, covering 289 districts, will get covered by DBTL by January 2014.

The DBTL scheme has already been launched so far in 54 districts of the country covering 21.9 million LPG consumers and Rs.222 crore subsidy has been transferred through 5.3 million transactions into the bank accounts of the LPG consumers so far.

As per the DBTL scheme, cash subsidy is transferred for the LPG cylinders directly into the bank accounts of the LPG consumers while the sale happens at the market price. In order to avail transfer of cash subsidy into the bank account, Aadhaar number of the LPG consumer has to be linked to the LPG consumer number and bank account of the LPG consumer for which a three months grace period from date of launch is being provided. During the grace period all consumers continue to get LPG cylinders at subsidized rate. After the grace period is over, all LPG consumers have to pay for LPG cylinders at market rate. Linkage via Aadhaar number is required for the transfer of cash subsidy. Thus, only those who have linked their Aadhaar numbers to both their bank account and LPG consumer number will be able to receive cash subsidy in their bank accounts. After the grace period is over, consumers will receive cash subsidy as and when they link their Aadhaar numbers for the balance entitlement.

All LPG consumers of the 289 districts are advised to obtain Aadhaar number and link it to their LPG consumer number and to their bank accounts if they wish to avail of the LPG subsidy at the earliest.

Aadhaar number is not required to avail LPG cylinders at non-subsidized rate.LPG consumers not desirous of availing subsidy on LPG are not required to furnish their Aadhaar numbers.