What is PAHAL?

The PAHAL (DBTL) Scheme was earlier launched on 1st June 2013, covering 256 districts. It required consumer to mandatorily register for an Aadhaar number in order to avail LPG Subsidy.

The government has comprehensively reviewed the PAHAL Scheme and after examining the difficulties faced by the consumer substantively modified the scheme prior to launch. The modified scheme has been was re-launched in 54 districts on 15.11.2014 in the 1st Phase and will be later launched in rest of the country on 1.1.2015. The modified scheme is given as under:

Options to receive LPG subsidy

Under the modified PAHAL scheme, LPG consumers can now receive subsidy in their bank account via two methods. Customers will be referred to as CTC or Cash Transfer Compliant once they join the scheme and are ready to receive subsidy into their bank accounts. The two options are:

  • Option I (Primary):

    Wherever Aadhaar number is available, it will remain the medium of cash transfer. Thus, an LPG consumer has to link his Aadhaar Number to his bank account and LPG consumer number.
  • Option II (Secondary):

    If LPG consumer does not have an Aadhaar number, then he can directly receive subsidy in his bank account without an Aadhaar number. This option, introduced in the modified scheme ensures that LPG subsidy is not denied to any LPG consumer given the lack of Aadhaar registration. In this option, either the consumer presents his bank account information (bank account holder name /account number /IFSC code) to the LPG distributor or present LPG consumer information (17 digit LPG consumer ID) to his bank).

LPG Consumers who are already CTC prior to launch on PAHAL (DBTL)

Domestic LPG Consumer who had already joined the earlier PAHAL (DBTL) scheme by linking their Aadhaar to bank and LPG database don’t need to take fresh action for receiving subsidy as the subsidy will be transferred to their bank accounts via Aadhaar based on the previous seeding. Such CTC consumers cannot exercise Option II above.

Pricing under PAHAL (DBTL)

In the PAHAL (DBTL) district(s), domestic LPG cylinders will be sold to domestic CTC LPG consumers at Market Determined Prices from the date of scheme launch.

Amount transferred to consumer

The total subsidy applicable on LPG cylinder will then be transferred to the CTC consumer for each subsidized cylinder delivered (up to the cap) as per his entitlement.

Grace Period

Non-CTC consumers will be allowed 3 months from the date of launch of PAHAL (DBTL) to become CTC. During this period such consumers will receive their entitlement of subsidized cylinders at the then applicable subsidized retail selling price.

Parking Period

After the grace period of 3 months, all non-CTC LPG consumers will get an additional 3-month Parking Period, during which the sale will happen at Market Determined Price for all LPG consumers

For non-CTC consumers, the total cash on sale made (as per their entitlement) shall be held back with the respective OMC to be transferred to the LPG consumers’ bank account should the consumer become CTC anytime during the Parking Period.

In case consumer does not become CTC during the Parking Period, the parked funds will lapse and consumer shall become ineligible to receive the same and sale will continue at market determined price till consumer becomes CTC.

After the expiry of the Grace Period of 3 months, and thereafter an additional Parking Period of 3 months, all non-CTC consumers will receive cylinders at marker determined price and will not be entitled to total cash until they become CTC.