Jharkhand: First State Implementing DBT in Kerosene PDS (Public Distribution System) - Important [ Current Affairs ]


Jharkhand is India’s first state to implement Direct Benefit Transfer (DBT) Scheme for Kerosene Public Distribution System. Four districts are selected under the scheme given below it:

  1. Chatra
  2. Hazaribagh
  3. Khunti
  4. Jamtara

The scheme will be implemented from 1st October 2017.

Location of Districts selected for DBT

Location of Districts selected for DBT

Location of Districts selected for DBT

About Direct Benefit Transfer in Kerosene (DBTK)

  • Similar to DBT in LPG distribution, people will buy kerosene at market rate but they will get subsidy directly in their bank accounts.
  • The amount paid to subscriber is equivalent to the difference between current Public Distribution System (PDS) price and market rate of kerosene.
  • Kerosene subsidy will be credited to eligible recipients in advance to avoid any problem in payment of un-subsidized price (during the initial phase).
  • With this move Government will intends to reduce subsidy outgo for kerosene from the current (2014-15) 24,799 crore rupees.
  • DBT’s main aim is to reduce the corruption and leakage in PDS- this is in line with overall goal of transferring subsidies directly to subscribers through the bank accounts launched by Government of India on 1 January 2013.
  • In the initial phase, this scheme will be implemented in selected 26 districts of eight states- Haryana, Chhattisgarh, Jharkhand, Himachal Pradesh, Maharashtra, Madhya Pradesh, Punjab, and Rajasthan.
  • Union Government had previously launched LPG subsidy scheme called  PAHAL that provides subsidies by Direct Benefit Transfer for around 150 million registered receivers- possibly the world’s largest DBT programme ever.

- Published on: October 5, 2016