States to be involved in direct benefit transfer for kerosene

The mode of direct benefit transfer (DBT) for kerosene will be implemented in consultation and partnership with State governments, Dharmendra Pradhan, Minister of State (Independent Charge) for Petroleum and Natural Gas, said on Thursday.

Pradhan was addressing representatives from 19 States and Union Territories on the implementation of DBT for kerosene.

An official statement said the Minister emphasised the process should be technology driven and ensure proper identification of beneficiaries in accordance with the Kerosene Control Order.

While Pradhan appreciated nine States for joining the scheme on a pilot basis, he urged other States to come onboard with at least one district for implementing the scheme.

From April 1, nine States will implement DBT for kerosene in 33 districts. They are Chhattisgarh, Haryana, Himachal Pradesh, Jharkhand, Madhya Pradesh, Maharashtra, Punjab, Rajasthan and Gujarat. At the meeting, the representatives of States and Union Territories made presentations on challenges and issues associated with the implementation of the scheme.

Issues such as identifying of beneficiaries, using of point of sale machines, integration with the existing PDS system and modalities of availability of white kerosene were discussed, an official statement said.

In the nine States where the scheme will be run on a pilot basis, the consumer will pay the non-subsidised price of kerosene at the time of purchase. Subsequently, the amount of subsidy will be directly transferred to the bank account of the beneficiary.

To avoid any inconvenience to the beneficiary during the initial purchase, an initial amount of subsidy shall be credited to all eligible beneficiaries, the statement said.

“With a view to incentivising States and Union Territories to implement DBT for kerosene, it has been decided that the States will be given cash incentive of 75 per cent of subsidy saving during the first two years, 50 per cent in the third year and 25 per cent in the fourth year,” it added.