Government to strengthen LPG subsidy, distribution system through PAHAL, Aadhar authentication: Petroleum Minister

New Delhi [India] August 5 (ANI): The Indian government has ramped up systemic reforms aimed at weeding out irregularities and improving consumer experience, to bolster transparency and efficiency in the delivery of domestic liquefied petroleum gas (LPG).

According to the Ministry of Petroleum and Natural Gas, notable advancements have been made in the way LPG is distributed and subsidies are transferred, especially under the flagship Direct Benefit Transfer of LPG (DBTL) - PAHAL scheme.

Responding to a Starred Question in the Rajya Sabha, Union Minister Hardeep Singh Puri outlined the multiple layers of reform that have reshaped the subsidy and distribution ecosystem. The implementation of initiatives like the PAHAL scheme, Aadhaar-based verification, biometric authentication, and the weeding out of ineligible or duplicate connections has significantly strengthened the system of transfer of targeted subsidies, Puri stated in his written reply.

The PAHAL scheme, which has been operational since January 2015, facilitates the transfer of LPG subsidies directly to consumers bank accounts. All domestic cylinders are sold at non-subsidised prices, and once the purchase is made, the applicable subsidy is reimbursed to the consumer, with real-time SMS alerts sent to confirm each transaction.

The minister noted that the system has been crucial in cracking down on fake or multiple LPG connections, which have historically contributed to subsidy leakage. As of July 1, 2025, over 4.08 crore connections have been blocked, suspended, or deactivated due to duplication or ineligibility.

The government introduced the Common LPG Database Platform (CLDP), utilising parameters such as Aadhaar numbers, bank details, and ration cards to eliminate redundant entries. Meanwhile, a biometric Aadhaar authentication drive is underway to secure the identity of beneficiaries further.

According to Puri, biometric authentication has already been completed for 67 per cent of Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries, with all new PMUY customers required to undergo this process before being granted a connection.

To improve transparency at the consumer level, all LPG distributors now operate under a unified IVRS/SMS-based booking system. Consumers are notified at three key points, such as booking, cash memo generation, and delivery, allowing them to track refills and report irregularities. A Delivery Authentication Code (DAC) has also been introduced to ensure that deliveries reach the rightful recipients.

Both regular and surprise inspections of LPG distributors are conducted by field officers of the Oil Marketing Companies (OMCs), the minister said. These inspections are carried out not only by local distribution teams but also by officials from regional and zonal levels, as well as by units like the Anti-Adulteration Cell and Vigilance Department.

A Standard operating procedure (SOP) issued in January 2025 led to the termination of around 12,000 PMUY connections that had not been refilled after installation. Since the scheme inception, a total of 8.49 lakh such connections have been terminated.

As part of efforts to minimise subsidy transaction failures, the government has focused on enhancing Aadhaar compliance. Puri reported that 92.44 per cent of India 33.05 crore active LPG consumers have seeded their Aadhaar numbers in the OMCs databases. Furthermore, 86.78 per cent of the 30.63 crore DBTL consumers are now fully Aadhaar Transfer Compliant.

During 2024-25, about 194 crore LPG refills were delivered to consumers, and complaints were received for only around 0.08 per cent of these -- mostly related to subsidy transfer or delivery delays -- reflecting the overall efficiency of the system, the report stated. (ANI)

Disclaimer: This news article is a direct feed from ANI and has not been edited by the News Nation team. The news agency is solely responsible for its content.