With Aadhaar linkage, you’re poorer by Rs. 50

Updated - June 28, 2016 07:55 pm IST

Published - August 06, 2013 12:41 am IST - HYDERABAD:

Are you availing your LPG cylinder subsidy through your Aadhaar-linked bank account? If yes, you are paying Rs.50 more per cylinder than those who have not submitted their Aadhaar cards. The reason: local taxes and the lack of State Government subsidy.

Customers who have carried out the linkage pay Rs.962 for a cylinder, and get Rs.497 deposited to these accounts as subsidy, which means a cylinder costs Rs.465. In contrast, those who have not submitted their Aadhaar card pay Rs.412.50, a cool Rs.52.50 less than their peers.

“The State Government gives a subsidy of Rs.25 for each cylinder, which is not being extended to customers who have linked their Aadhaar and LPG accounts. These customers are also paying higher taxes,” State LPG co-ordinator Madhukar Ingole said. After August 31 — the deadline for compulsory linking of the Aadhaar number with LPG connections — this discrepancy will be absent as direct subsidy will be discontinued, Mr. Ingole said.


However, only 35 per cent LPG customers have got the linkage in place till date, primarily because of the complexities involved.

How money flows

Once a cylinder is purchased, the subsidy money is released by the gas distribution company to the National Payments Corporation of India (NPCI), which in turn credits it into the beneficiary’s bank account. For this, a customer’s accounts — both LPG and bank — should be linked to the Aadhaar. Also, the gas agency should forward the Aadhaar card details to the distribution company and the bank should link their account with NPCI through the Aadhaar card number.

“There is a delay in linking bank accounts with the NPCI, because of which, most customers are not getting the subsidy deposited directly to the bank accounts. Banks are speeding up the process and we hope the issue will be resolved before August 31,” Mr. Ingole said.

Check status

Customers can check their current status at the transparency portals of gas distribution companies as well as the Aadhaar portal.

The government, meanwhile, is yet to provide clarification on the subsidy amount of Rs.25. Once the process of linking the Aadhaar is complete, disbursement of subsidy will be smooth, Mr. Ingole said, adding that there have been direct transfers of more than Rs.100 crore till date.

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