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Regular-article-logo Monday, 06 April 2026

Tardy link-up for LPG subsidy - Black marketeering of cooking gas, slow start to scheme raise concern

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A.S.R.P. Mukesh Published 03.01.15, 12:00 AM

Cooking gas scheme needs to gain steam in Ranchi

The Union government has kicked off the process of directly transferring LPG subsidy into bank accounts of domestic consumers under Pahal (Pratyaksh Hanstantarit Labh) - earlier known as Direct Benefit Transfer Scheme - from Thursday, but lakhs of Jharkhand residents look set to miss the cash relief unless they hurry up and link their bank accounts with gas connections within March.

Of the 16 lakh-odd domestic gas consumers of Indian Oil, Bharat Petroleum and Hindustan Petroleum in the state, less than half have linked their bank and gas accounts till now, thanks to a number of reasons ranging from lackadaisical attitude to lack of awareness.

Although the deadline for registration under Pahal for the gas subsidy is over (the last date was December 31, 2014), the government has given a grace period till March 31, during which consumers who have not linked their bank and gas accounts will continue to pay the subsidised rate (Rs 445 in Ranchi) at the time of delivery.

After March, all consumers, irrespective of direct benefit registration, would be charged the market price, which is Rs 805 in Ranchi. The government subsidy on a cylinder priced Rs 805 is Rs 360.

Indian Oil Corporation (IOC), which has the maximum number LPG consumers in Jharkhand (around 11.3 lakh with 2.6 lakh customers based in Ranchi), admitted that the registration rate has been really slow in this state.

Speaking to The Telegraph on Friday, IOC's chief area manager (LPG) Uday Kumar said only 3.7 lakh linkages could be done till date.

'Around 5.8 lakh customers have submitted the requisite papers for linking their bank accounts with their LPG Ids. The accounts of 3.7 lakh consumers could be linked while the rest is pending. In Ranchi, out of 2.6 lakh customers, around one lakh accounts have been linked so far,' he said. 

At Hindustan Petroleum, Sahidul Islam, central public information officer of the oil major’s (LPG division), said out of 3.64 lakh customers across the state, 1.53 lakh have completed the registration. 

“Out of the total number of linkages done so far, 1.18 lakh customers submitted both their Aadhaar number and bank account number. The rest submitted only their bank details. The figures ought to have been better,” he said. 

A source at Bharat Petroleum said out of their 2 lakh customers, only 35-40 per cent have linked their accounts.
So, what could be the possible reasons behind the tardy response? “Customers can answer it better. On our part, we are trying to reach out to each one of our product users on a regular basis through SMS, computerised calls to encourage them to link their accounts,” said IOC’s Kumar. 

Ravi Bhatt, general secretary of Jharkhand Gas Dealers’ Association and chairman of FJCCI’s petroleum sub-committee, tried to analyse the situation. 

“We have reports that some banks are deducting Rs 40 to deposit the subsidised cash into the user’s account. This has to stop. Secondly, awareness is very low. Oil companies are simply passing the onus to dealers to inform customers. Dealers don’t take much interest as they have their own share of work in ensuring timely gas delivery,” he said. 

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