Jharkhand: First State Implementing DBT in Kerosene PDS (Public Distribution System) - Important [ Current News (Concise) ]
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:
The scheme will be implemented from 1st October 2017.
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