Aadhaar-LPG linkage back in the reckoning?

Officials drop hints on reconsideration of the scheme after plugging loopholes

May 23, 2014 10:36 pm | Updated 10:36 pm IST - VIJAYAWADA:

Is the Aadhaar- LPG linkage for subsidised LPG cylinders back in the reckoning? The answer seems to be ‘yes’, if claims of a few dealers and officials of oil companies are to be believed. However, it is not clear if the earlier practice of crediting the subsidy to the customers’ bank accounts would continue or a new system will be put in place.

The scheme was scrapped on March 10 this year following several complaints from the consumers. With a new government all set to take charge, officials of oil companies and LPG dealers indicate that the scheme may be reconsidered after plugging the loopholes.

Loopholes

The primary problem was the delay in depositing the subsidy amount in customers’ bank account, besides the time taken for linkage between the dealer and the bank. Consumers were forced to shell out up to Rs.1,100 per refill but the promised subsidy of around Rs.600 was never credited to their account in time. Many people had to run from pillar to post to get the subsidy amount. “In a recent meeting in Hyderabad, officials dropped hints on bringing back the scheme but they were not sure about the modalities of implementation,” said a member of the Andhra Pradesh LPG Dealers Association.

Though the officials concerned could achieve over 85 per cent success in linking the Aadhaar card to LPG in Hyderabad and Ranga Reddy districts, the State average was way behind, somewhere around 55-60 per cent. In Vijayawada and Guntur, it was about 60 per cent.

Admitting flaws, a senior HPCL official said a committee was constituted by the Petroleum and Natural Gas Ministry to study the effective implementation of the scheme without any delay in transfer of the subsidy.

Feedback

The committee also gathered feedback from oil companies, dealers and consumers. The future course of action will depend on the committee’s report and the extent to which the new government will consider its recommendations. “There is a need for Aadhaar-LPG linkage system,” he said.

An average consumption of cooking gas by a family is six to seven cylinders in a year. This calculation holds good for the country. Even if the government fixes the ceiling at nine cylinders per year, it would be a reasonable decision. Consumption will go up if there is no ceiling and government cannot bear the subsidy loss,” he added.

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