All Schemes for LPG Customers

Today, India has around 16.64 crore active consumers of Liquefied Petroleum Gas (LPG). Around 21 million tonnes of LPG is required for consumption per annum. This demand is expected to see a substantial growth over the coming years. In line with this need, the government has taken several steps to improve the overall infrastructure and distribution of LPG in the country.

Listed below are the schemes provided for the benefit of LPG consumers.

1. CSR Scheme for BPL Connections

As per this scheme, BPL families can receive a new LPG connection without having to pay the security deposit for a cylinder and a pressure regulator. However, they are required to bear the following expenses,

  • Installation or demonstration charges for the new connection.
  • Administrative charges and cost of DGCC.
  • Cost of gas stove and LPG rubber tube at the time of release of new LPG connection.
  • If the stove is not procured from the LPG distributer, it needs to be inspected. These inspection charges will be borne by the customer.
  • Price of LPG in the new cylinder.

All these charges should be paid to the concerned distributor.

2. Opting Out of LPG Subsidy

Every cylinder that is used by a consumer carries a subsidy of around Rs. 200. This amounts to a huge subsidy burden that deters the government from utilising these resources in other developmental activities. In an attempt to focus the LPG subsidy towards the needy, the government has launched the ‘Opt out of subsidy’ scheme. As per this scheme, the government motivates LPG consumers who can afford to pay the market price for LPG to surrender their subsidy.

Customers can opt-out from LPG subsidy through the website, or by submitting Form-5 to their distributors.

3. Regularising LPG Connections

This scheme is targeted at streamlining the possession and transfer of LPG connections.

  • For connection transfers, a written consent is needed from the registered customer for transfer to the person holding the equipment and SV.
  • The distributor verifies the submitted documents and settles the security deposit amount between the registered customer and holder of the equipment.
  • A fresh SV will be issued to the holder of the equipment.
  • For people holding equipment without any connecting documents, a security deposit at the prevailing rate is charged.
  • In case of death of the SV holder, the beneficiary shall be transferred the connection on submitting Death Certificate and Legal Heir Certificate/NOC.
  • Transfer of LPG connection within the family is possible if the registered member provides a written consent for the same.

4. Public Liability Insurance for LPG Accidents

PSU Oil Marketing Companies act as Principals and take Insurance policies for LPG accidents including Third Party Insurance Cover. These are Public Liability Policies and are not in the name of an individual customer.

  • The distributor does not collect any premium for the insurance policies from the customer.
  • The claim amount is remitted through the Oil Company to the beneficiary.
  • There are limits on the liability for compensation.

5. Portability

Under this provision, a customer can shift to an alternate distributor if he/she is dissatisfied with service. This is useful in keeping distributors competent and in providing improved service to customers.

  • Customers can transfer the connection through the website,
  • The approval of the parent distributor is not needed to initiate transfer. The customer can complete required documentation at the new distributorship within the specified time.
  • There shall be no transfer fee or additional security deposit for transfer of LPG connection under this scheme.
  • There is a commendable electronic tracking mechanism to ensure smooth processing of the transfer request.

6. PAHAL Schemes

The initial phase of the PAHAL scheme required the consumer to have an Aadhaar number to avail LPG subsidy. This has been reviewed comprehensively and a modified scheme has been launched recently. Once a customer joins the scheme and is ready to receive subsidy in his bank account, he is said to be Cash Transfer Compliant (CTC).

  • As per the modified approach, there are two methods by which LPG customers can receive subsidy.
    • Primary option - Aadhaar will remain the medium of cash transfer. The Aadhaar number is linked to the bank account and the LPG consumer number.
    • Secondary option - If the LPG consumer does not have an Aadhaar number, he can receive subsidy in his bank account irrespective of this. In this case, the consumer is required to produce his bank account information to the LPG distributor for updating the LPG database. He should also present his LPG consumer ID to his bank.
  • If LPG consumers were already CTC prior to the update in PAHAL, they need not take fresh action to receive subsidy.
  • As per this scheme, LPG cylinders will be sold to customers at Market Determined Price.
  • Customers who join PAHAL will be provided a one-time advance, and it will remain with the customer till termination of connection. At termination, the amount will be adjusted by the distributor.

7. The Pradhan Mantri Ujjwala Yojana

Prdhan Mantri Ujjwala Yojana is yet another welfare program that the Government of India had launched under the leadership of Prime Minister, Narendra Modi. Under this scheme, the government aimed to provide about 50 million LPG connections to women who fall below the poverty line in our country. Some of the highlights of this scheme are:

  • This scheme was launched on 1st May 2016.
  • About 8 thousand crore was invested to kickstart this scheme which will go on to benefit many people in the country.
  • This scheme aims to replace unclean cooking fuels which is used in rural India with clean and affordable LPG (Liquefied Petroleum Gas).

8. Give-Up LPG Subsidy

Give-up LPG subsidy” is one of the popular campaigns introduced by Prime Minister, Narendra Modi in India. Launched in the month of March 2015, the objective of this campaign was to motivate LPG users across the country to pay the market price of the LPG cylinder if they can afford it and surrender their LPG subsidy back to the government so that people below the poverty line can get access to it.

  • It is recorded that as of 23 April 2016, about 1 crore people (10 million people) in India voluntarily gave up their LPG subsidies.
  • These LPG subsidies are now redistributed by the government to the rural people in India for free.
  • Among the states that positively accepted this campaign, Karnataka, New Delhi, Tamil Nadu, Maharashtra, and Uttar Pradesh top the list.   


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