Andhra Pradesh LPG Holders – Are you ready to receive INR 4,000/- in your bank accounts?


Multiple agencies in Andhra Pradesh are working to meet the deadline of May 15, for smooth rollout of LPG subsidy via the DBT (Direct Benefit Transfer) route.

The minute details will be made public in the coming weeks. As this is the first major collaboration between companies, banks, integrators, government departments, bank consumers, UIDAI, and NPCI, minor glitches are expected.

As of now the broad viewpoints which are emerging are as under

The INR 4000 magic figure

Cost of 1 LPG cylinder =   Rs901.50

Subsidy amount of 1 LPG cylinder = Rs434/-

Subsidy amount for 9 LPG cylinders = 434*9 =  Rs3,906/-

Option 1:

Consumers pay the full amount of the LPG cylinder, and later on, Government credits the subsidy to the Aadhaar linked bank account.

Option 2:

Government credits the full subsidy at the beginning of the year, and consumers chip in their share to buy the LPG cylinder at the actual rate.

Option 3:

Subsidy is credited when the LPG cylinder is booked, by the LPG consumer.

Option 3 seems to be the most balanced option. Each of the above options has its own plus and minus points. Let us wait and see, what will be the decided option.

All the benefits which were transferred via the DBT scheme were simple as compared to the LPG subsidy project.

It is to be noted, that the LPG consumers must utilize their full quota of 9 subsidy cylinders in the financial year. There is no carry-over to the next financial year.

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