The direct transfer of the subsidy to LPG consumers will be rolled out in five districts of the State from May 15.

The Centre, instead of giving subsidy amount of around Rs.600 per cylinder to the oil companies, will hereafter transfer the amount to the consumers’ bank accounts under the Direct Benefit Transfer scheme.

But for this, consumers should have their Aadhaar numbers seeded to their bank accounts and also to the database of oil companies.

How it works

LPG consumers are eligible for nine cylinders a year at Rs.400 each but will have to pay Rs.1,000 upfront and later withdraw the subsidy amount already credited into their accounts.

Dr. P.V. Ramesh, Principal Secretary, Finance, told mediapersons here on Friday that after May 15, the subsidy amount would be credited in advance to the bank accounts of LPG consumers in Hyderabad, Ranga Reddy, Chittoor, Anantapur and East Godavari districts.

This will ensure that there is no delay to withdraw the subsidy amount once the consumer takes the delivery of the LPG cylinder.

About Rs.150 crore will be transferred to bank accounts as advance subsidy after May 15 as and when consumers book their cylinders.

The objective of DBT on LPG is to check bogus cards, ghost consumers and misuse of domestic LPG cylinders for commercial purpose, he said.