Despite no specific instructions from the Government, some LPG distributors have started insisting on issuance of new gas connections only on the basis of Aadhaar. But the public sector oil companies say that “it is just one of the options for proof of identity, not the only option.”
Aadhaar is the Unique Identification Number, one of the most ambitious projects of the Government to drive welfare programmes.
The Petroleum Ministry-initiated pilot studies to introduce director transfer of cash subsidy for domestic LPG have been launched in Hyderabad (Andhra Pradesh) and Mysore (Karnataka). This is in line with the recommendations of the Task Force on Director Transfer of Subsidies on Kerosene, LPG and Fertiliser.
The Minister of State for Petroleum & Natural Gas, Mr R.P.N. Singh, informed the Lok Sabha on Thursday that “the task force has suggested a mechanism which will use customer's Aadhaar enabled bank account to transfer subsidy. The core subsidy management system will maintain the subsidy accounts of all beneficiaries, and all policies related to subsidy management.”
Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation, gave directions to their dealers on May 27, saying that Aadhaar can be accepted as proof of identity and residence for availing a new LPG connection.
A senior official in the Unique Identification Authority of India told Business Line , “the UID does not issue any directive to any agency for making the Aadhaar mandatory. It is up to the Ministry or the State Governments concerned to issue instructions in this regard.”
As regards kerosene, the Governments of Delhi, Maharashtra, Karnataka, Andhra Pradesh, Odisha, Madhya Pradesh, Rajasthan and Bihar have expressed willingness to conduct the pilot study for direct transfer of subsidy, the Mr Singh said, adding that “responses from other States/Union territories is awaited.”
The Finance Ministry has constituted a Task Force to suggest an implementable solution for direct transfer of cash subsidy. Its mandate was subsequently expanded by including the IT strategy of public distribution system and direct transfer of subsidy for food, and Aadhaar-enabled payment infrastructure for transfer of subsidy.