Direct Benefit Transfer (DBT) scheme for Kerosene

Kerosene subsidy to be targeted to the really needy

Ques : Direct Benefit Transfer (DBT) scheme for Kerosene will be implemented by Petroleum and Natural Gas Ministry on –

(a) April 1, 2016

(b) March 1, 2016

(c) May 1, 2016

(d) July 1, 2016

Ans (a)

Related facts

  • On January 1, 2016 Direct Benefit Transfer (DBT) scheme for Kerosene by Petroleum and Natural Gas Ministry will be implemented with effect from April 1, 2016.
  • It is notable that 26 districts out of eight states have agreed on DBT scheme on kerosene.
  • This scheme will be implement in Chhattisgarh (Raipur, Durg, Bilaspur), Haryana (Panipat, Panchkula), Himachal Pradesh (Shimla, Solan and Una), Jharkhand (Chhatra, Giridih, East Singbhum, Hazaribagh, Jamtara and Khunti), Madhya Pradesh (Hoshangabad, Harda, Khandwa, Burhanpur), Maharashtra (Amaravati, Latur), Punjab (Taran Taran, Pathankot and Mohali) and Rajasthan (Pali, Jhunjhunu, Kota).
  • Subsequently, the amount of subsidy will be directly transferred to the bank account of the beneficiary.
  • Central government has been decided that the States be given cash incentive of 75% of subsidy savings during the first two years, 50% in the third year and 25% in the fourth year.

Perspective of the scheme –

  • The National Sample Survey 2011-12 indicates that the total consumption of kerosene in the country, including both open market and PDS kerosene, was 71.30 lakh kilolitres.
  • 85 lakh kilolitres of subsidized PDS kerosene has been allocated to the States in the year 2015-16.
  • It is notable that Subsidy outgo for kerosene for the financial year 2014-15 was about Rs. 24,799 crore.

Reference:

http://pib.nic.in/newsite/PrintRelease.aspx?relid=134114

http://pibphoto.nic.in/documents/rlink/2016/jan/p20161103.pdf