LPG subsidy brought under direct cash benefits

Last Updated: Fri, Apr 05, 2013 21:31 hrs

Prime Minister Manmohan Singh on Friday approved a move to allow subsidy on cooking gas cylinders to be transferred to beneficiaries through direct cash transfers in 20 districts by mid-May.

The move came along with the decision to extend the scheme to transfer social welfare money directly to the poor will to another 78 districts, starting July.

The decisions to bring in the new districts in the states of Odisha, West Bengal, UP, Uttarakhand, Bihar and Chhattisgarh, were finalised at a meeting chaired by the Prime Minister on Friday.

"With the subsidy going directly, there will be only one price at which cylinders will be sold at a dealer´s shop. This will eliminate all ghost connections and diversion of cylinders," a government statement said.

The Direct Cash Benefits Transfer policy, introduced in January, aims to convert all subsidies into bank transfers for beneficiaries, cutting down on leakages.

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