Jharkhand on 1 October 2016 became India’s first state to implement Direct Benefit Transfer (DBT) in Kerosene. The scheme is being implemented in four identified districts of the State namely Chatra, Hazaribagh, Khunti and Jamtara.
In a statement, Petroleum and Natural Gas Ministry said that under the DBT Scheme, PDS kerosene is being sold at non-subsidised price and the subsidy is being transferred to consumers directly into their bank accounts. This initiative is aimed at rationalising subsidy and plugging the leakages.
Aim: The scheme aims at eliminating subsidised Kerosene from the supply chain for targeting the beneficiaries and end pilferage and black-marketing. It also aims at cutting down adulteration of cheap cooking and lighting fuel with diesel.
DBT Scheme for Kerosene
The government had plans to implement the Direct Benefit Transfer (DBT) in Kerosene in 33 districts identified by 9 State Governments by 1 April 2016. The identified states were namely, Chhattisgarh, Haryana, Himachal Pradesh, Jharkhand, Madhya Pradesh, Maharashtra, Punjab, Rajasthan and Gujarat.
But the date of its implementation was pushed back due to problems like lack of bank accounts and it’s seeding with Aadhaar number, which didn’t allowed government in creating biometric database of 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.