Petroleum Minister seeks cooperation of States in implementing DBTK

Petroleum Minister seeks cooperation of States in implementing DBTK 

The Minister of State (I/C) for Petroleum & Natural Gas Shri Dharmendra Pradhan has sought wholehearted cooperation of the States in making Direct Benefit Transfer in Kerosene (DBTK) success. Addressing a Conference in New Delhi today on DBTK, he said that Direct Benefit Transfer in LPG has been successfully implemented, due to contribution of all the stakeholders. 

Representatives from 19 States/ UTs attended the Conference. Punjab Food, Civil Supplies & Consumers Affairs Minister Shri A.P.S Kairon and Maharashtra Food & Civil Supplies Minister Shri Girish Bapat also attended the meeting. The conference, being attended by State Government officers, officers of Oil Marketing Companies and other stakeholders has been organized to discuss the preparedness and concerns in launching DBTK from 1st April, 2016. 

Hon’ble MoS (IC) P & NG, Shri Dharmendra Pradhan emphasized that DBTK will be implemented in consultation and partnership with State Governments, in consonance with the spirit of cooperative federalism. He emphasized that the process should be technology driven and should ensure proper identification of beneficiaries in consonance with Kerosene Control Order. He complimented the nine States which have opted for implementing the scheme on a pilot basis and expressed optimism that other States will also come on board and will take up at least one district for implementing the Scheme. 

Each State made their presentation on the challenges and issues associated with the implementation scheme. Various issues raised by the states having bearing on implementation of the scheme which included the basis of identifying beneficiaries, use of Point of Sale (PoS) machines, integration with the existing PDS system and modalities of availability of white kerosene, etc. were discussed. 

Apart from the nine States, other States also evinced keen interest in joining the DBTK platform. It was decided to carry forward the process and discuss the modalities of implementation with the nominated nodal officers. All other stakeholders including NIC, Banks, etc will also be part of the consultative process. 

Background 

The Government has announced implementation of Direct Benefit Transfer (DBT) in Kerosene w.e.f 01.04.2016 in 33 districts identified by 9 States Governments namely, Chhattisgarh, Haryana, Himachal Pradesh, Jharkhand, Madhya Pradesh, Maharashtra, Punjab, Rajasthan and Gujarat. More districts are likely to join soon. 

Where the scheme for direct transfer of subsidy is introduced, the consumer will pay the non-subsidized price of kerosene at the time of purchase. Subsequently, the amount of subsidy will be directly transferred to the bank account of the beneficiary. To avoid any inconvenience to the beneficiary during the initial purchase through payment of un-subsided price, an initial amount of subsidy shall be credited to all eligible beneficiaries. 

With a view to incentivize States/UTs to implement DBT in kerosene, it has been decided that the States will be given cash incentive of 75% of subsidy saving during the first two years, 50% in the third year and 25% in the fourth year.