The Government has announced implementation of Direct Benefit Transfer (DBT) in Kerosene w.e.f. April, 1, 2016 in 33 districts identified by 9 State Governments namely, Chhattisgarh, Haryana, Himachal Pradesh, Jharkhand, Madhya Pradesh, Maharashtra, Punjab, Rajasthan and Gujarat.
Under the scheme for direct transfer of subsidy, the consumer will pay the non-subsidized 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 through payment of non-subsidized price, an initial amount of subsidy shall be credited to all eligible beneficiaries. As a part of this scheme, implementing
States will be given fiscal incentives equivalent to 75 % of subsidy saved in the first two years, 50 % of subsidy saved in third year and 25 % of subsidy saved in 4th year.
Challenges and issues associated with the implementation of the scheme:
Various states have conveyed that issues having a bearing on implementation of the scheme included the basis of identifying beneficiaries, use of Point of Sale (PoS) machines, integration with the existing PDS system and modalities of availability of white kerosene, etc. were discussed.
Apart from the nine States, other States also evinced keen interest in joining the DBTK platform.
The government has decided to carry forward the process and discuss the modalities of implementation with the nominated nodal officers. All other stakeholders including NIC, Banks, etc will also be part of the consultative process.