New Delhi: Direct transfer of cash for LPG cylinder subsidiary has come into force from June 1st. Under this scheme, the government will transfer Rs 435 directly to the bank accounts of LPG consumers in 18 districts of the country.

Consumers will get the money each time they book for an LPG refill. These consumers then will have to buy cooking gas at market price. The government hopes to save Rs 8,000-10,000 core annually after the scheme is rolled out all over the country.

The government plans to extend the scheme to rest of the country before the end of this year , but  it first wants to see results in the 18 districts. The districts selected have high Aadhaar or unique identification number penetration.

As many as 89 per cent of the LPG consuming population in these districts have Aadhaar number, still  government will give a three-month grace period to them to procure the UID number and seed it with their bank accounts.

Then on that is from September 1st, only consumers having Aadhaar and banks accounts linked to them will get cash subsidy and the rest will have to buy LPG at market price.
Oil Minister M Veerappa Moily has launched the scheme in Tumkur in his home state Karnataka today, while Minister of State for Petroleum and Natural Gas Ms. Lakshmi Panabaka will simultaneously kick start the scheme in Hyderabad, the capital of her home state Andhra Pradesh.

The scheme was to be rolled out in 20 districts initially but the launch at Mysore in Karnataka and Mandi in Himachal Pradesh has been put off by a month due to assembly and Parliamentary by polls, official sources said.

Rates will vary in different cities, depending upon local sales tax or VAT.