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DBT helped deactivate 4.08 cr. fake, inactive LPG connections

DBTL (PAHAL) Scheme

  • Launched: January 2015 by the Government of India.
  • Objective: To transfer the LPG subsidy amount directly to the bank accounts of beneficiaries, promoting transparency and reducing leakages.
  • Key Principle: LPG is sold at market price; subsidy is later reimbursed to eligible consumers via Direct Benefit Transfer (DBT).

Relevance : GS 2(Governance , Schemes)

Core Features

  • All LPG cylinders are sold at non-subsidised prices.
  • The eligible subsidy amount is transferred directly to consumers’ bank accounts.
  • Applies to both existing customers and new beneficiaries under the Pradhan Mantri Ujjwala Yojana (PMUY).

Key Achievements (as of July 1, 2025)

  • 4.08 crore duplicate, fake/non-existent or inactive LPG connections have been blocked, suspended, or deactivated.
  • Enabled identification and removal of:
    • Ghost connections (non-existent).
    • Multiple connections under one name.
    • Inactive or unverified users.
  • Helped curb misuse and diversion of subsidised LPG for commercial use.

Role of Technology & Verification

  • Aadhaar-enabled DBT authentication:
    • Allows real-time, accurate, and cost-effective beneficiary identification and de-duplication.
    • Ensures only eligible citizens receive the subsidy.
  • Biometric authentication:
    • Public sector Oil Marketing Companies (OMCs) have been directed to complete biometric Aadhaar authentication of all PMUY and PAHAL beneficiaries.
    • As of July 1, 2025, 67% of PMUY beneficiaries have undergone biometric verification.

Common LPG Database Platform (CLDP)

  • A centralised database used to:
    • Identify and eliminate duplicate or fake connections.
    • Use parameters like Aadhaar number, bank account, ration card, address, and name for cross-verification.
  • CLDP supports targeted delivery and enhances database accuracy across agencies.

Special Focus on PMUY (Pradhan Mantri Ujjwala Yojana)

  • New PMUY beneficiaries must complete biometric Aadhaar authentication before receiving LPG connections.
  • Ensures subsidies are targeted at intended poor households, mainly women from Below Poverty Line (BPL) families.

Impact on Governance & Welfare Delivery

  • Promotes:
    • Transparency.
    • Accountability.
    • Financial inclusion (through Aadhaar-linked bank accounts).
  • Aids in rationalising subsidy expenditure.
  • Strengthens India’s overall social safety net and welfare delivery mechanisms.

Broader Significance

  • DBTL is a global case study in the use of fintech and digital identity for subsidy reform.
  • Forms part of India’s JAM Trinity (Jan Dhan, Aadhaar, Mobile) based governance.

August 2025
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