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It has been three months since a panel headed by former IIT Kanpur Director SG Dhande had recommended re-launching of the direct benefit transfer of LPG (DBTL) in districts where it had already been implemented, however the Government is yet to take a call on accepting its recommendations.

The Dhande panel had submitted its final report to the Government on May 14, two days before the Lok Sabha results came. However the NDA Government, which assumed power at the Centre on May 26, is still examining its contents and there is no clarity on what should be done with the recommendations.

The indecisiveness could compound the matter, as till 30.01.2014 (when the scheme was abruptly stopped by the UPA Government amid complaints regarding its implementation), 17 million consumers had received INR 3,000 crore in their bank accounts under it. Industry sources said that with those consumers who had received the subsidy amount in advance in their bank accounts, need to be evaluated. This however will only be possible, once the Petroleum Ministry takes prompt decision on it.

Officials within the ministry however were clueless about the implementation of the panel’s recommendations and sources pointed out that there has been no indication from the top.

The DBTL scheme was the erstwhile UPA Government’s showcase project which it had launched in June 2013. Under it the Government had intended to directly send the subsidy amount to consumers buying subsidised LPG cylinders, directly to their bank accounts which had been linked to Aadhar cards. The idea was to provide the subsidy to those who rightfully deserve it and with only Aadhar card linked bank account holders coming under its ambit, the DBTL scheme was meant to plug pilferages.

The Government though had to stop the scheme on 30.01.2014, after receiving complaints regarding its implementation at the grass root level. Till that time, the scheme had covered 291 of the country’s 640 districts.

Soon after, the Petroleum Ministry had set up the Dhande Committee in March this year, and it was given the mandate to look into the problems being faced in its implementation. However, just days after the panel was set up, the Supreme Court on March 24 had ordered the Government to withdraw all notifications that make Aadhar cards mandatory for availing social security benefits including DBTL, thus dealing a blow to the UPA’s dream project.

“Re-launch direct benefit transfer for LPG immediately in the districts where it has already been implemented,” the Dhande Committee had recommended.

Explaining the rationale behind the recommendation, the panel had said that it can be re-launched in the same districts provided they meet the prescribed threshold of UID number issued, LPG connections and bank account seeding.

Sources privy to the development said that all the necessary feedback had been sent to the panel, based on which it finalised its recommendations. The Government, however, is still analysing the recommendations, they added. The Dhande panel had further observed that based on the evaluation of the scheme, feedback from various stakeholders and audit reports, it (the scheme) was successful in achieving its objectives i.e. enhancing financial inclusion, reducing diversion, eliminating ghost/duplicate connections, and improving LPG availability.

At the same time the panel noted that the scheme’s poor implementation could be due to the speed at which it was rolled out and “also inclusion of low Aadhaar districts gave rise to consumer grievances”.

Source-On Request