The Indian government’s Pahal scheme, also referred to as the Direct Benefit Transfer for LPG (DBTL) scheme or Pratyaksh Hanstantrit Labh (PAHAL) scheme, is designed to provide financial assistance to beneficiaries by subsidizing their purchases of liquefied petroleum gas (LPG) cylinders. The scheme operates by transferring LPG subsidy funds directly into eligible consumers’ bank accounts, bypassing intermediaries and limiting the possibilities for diversion or leakage of subsidized LPG cylinders.

PAHAL scheme was launched on 01stJune 2013 by Ministry of Petroleum and Natural Gas and covered 291 districts. But since Aadhar number was mandatory in order to avail subsidy, consumers faced a hard time in getting enrolled as procedure to get Aadhar card was tedious in addition to the delay in delivery of Aadhar card.

Relaunch of PAHAL Scheme in 2014

However in Nov’14 the scheme was re-launched and under this, LPG consumers of Indane, HPCL, Bharat who have enrolled in the scheme under two phases as mentioned below can avail Direct Benefit Transfer for LPG (DBTL) without even having Aadhar number. Only condition is that the consumer must have bank account and LPG account on his/her name.

• Phase-I: PAHAL started on 15Nov2014 in select 54 districts and ended on 14Feb 2015
• Phase-II: Launched in remaining 622 districts on 01stJan 2015 and will end on 31stMarch 2015. 

Parking Period: Those who couldn’t join PAHAL scheme before 31stMarch 2015 can still enroll before 30th June 2015. The period is called parking period. However until they join, LPG cylinders can be purchased ONLY at market rate and no subsidy would be transferred. Once they get enrolled, they will get permanent advance along with the due subsidised amount for the financial year. This parking period is actually because of government’s generosity. Check out benefits of PAHAL scheme in detail.

People from rural areas still do not have bank account and they face hard time to get enrolled in DBTL scheme. For such people, a very simple solution is to open zero balance savings account at free of cost under Pradhanmantri Jan Dhan Yojana (PMJDY). Procedure to open account under PMJDY is very simple and also offers various benefits to the account holders such as RuPay card, accident insurance and other.

• It is the world’s largest cash transfer scheme with over 9.75 crore consumers covered till Jan’15.
• As of now, over 5,500 Crore has been deposited into the bank account of consumers who have enrolled for this scheme.
• Although this scheme is for every Indian household, it’s main aim is to benefit people from poor section of the society. So people with higher income are welcome to opt out of this scheme. This way amount worth crores can be saved.

How to Avail Benefits of PAHAL scheme

To avail the benefits of the Pahal scheme, individuals need to follow these steps:

1. Link Aadhaar card: In order to ensure precise identification and direct subsidy transfers, individuals must link their LPG consumer number and bank account with their Aadhaar card, which provides a unique identification number.
2. Opt for subsidy transfer: To receive the subsidy amount, consumers have the option to provide consent for subsidy transfer and receive it directly in their bank account. They can accomplish this by submitting the necessary form or giving consent online via the oil company’s website.
3. Purchase LPG at market price: After registering for the Pahal program, customers are required to buy LPG cylinders at the prevailing market rate. The government-approved subsidy amount is then automatically credited to their linked bank account.

Please take note that the Pahal scheme is subject to government policies and eligibility criteria, which are subject to revision periodically. To stay informed, consumers are advised to keep themselves updated with the latest guidelines and information provided by the respective oil companies or government authorities. The Pahal scheme has effectively improved the subsidy process and minimized instances of misuse. Its objective is to ensure that the subsidized LPG cylinders reach the intended beneficiaries directly, promoting transparency and efficient delivery of subsidies.

Hi, I am Nikesh Mehta, owner and writer of this site. I’m an analytics professional and also love writing on finance and related industry. I’ve done online course in Financial Markets and Investment Strategy from Indian School of Business. I can be reached at nikeshmehta@allonmoney.com.