You pay full cost of cylinder first for Rs 500 gas cylinder scheme; wait for DBT from oil companies

HYDERABAD: it’s not easy to get that alluring gas cylinder for Rs. 500.

There are too many criteria to be met including Aadhar, ration card, etc and should have been in the official records already.

Well, those nitty gritties apart, there is a catch in the subsidised gas cylinder scheme.

The rule is: you pay the full cost of the cylinder first and take delivery. Then, the gas company concerned would pay for it through direct benefit transfer (DBT). How will the company get that money? The State Government would pay the balance cost excluding the Rs 500 a customer would have paid per cylinder to the oil company.

Those under Ujjwala scheme and those under regular connections would be covered in the scheme.

Also Read: Gruha Jyothi, Rs 500 gas cylinder schemes likely from February 27

The Civil Supplies Department has devised a mechanism where beneficiaries of the scheme would have to initially pay the full price for the gas cylinder upon purchase. However, the additional amount paid above Rs.500 will be reimbursed through Direct Benefit Transfer (DBT) including with the central government providing a subsidy of Rs.40.

The pricing of gas cylinders varies across different locations in Telangana, with prices ranging from Rs.955 in Hyderabad to Rs.973.50 in Dhanwada of Narayanapet district. This disparity is attributed to variations in transportation costs to different regions.

With approximately 11.58 lakh Ujjwala gas connections in the state, beneficiaries receive a subsidy of Rs.340 per cylinder from the central government.

Also Read: Rythu Bandhu by March 15, Rs 500 cylinder, 200 units free power within one week: Revanth Reddy

The state government has decided to provide the subsidy to Ujjwala gas connections as well besides centre's subsidy if the consumers pay more than Rs. 500. This approach ensures that consumers in remote areas do not have to pay the increased transportation charges for gas cylinders. However, the consumer has to first pay for the cylinder and then wait for the subsidy.

Senior officials from the Civil Supplies Department discussed with Oil Companies on the scheme through a video conference.

The scheme is set to be launched on February 27, with district-wise lists of beneficiaries to be provided to oil companies for seamless coordination. The state government released a sum of Rs.80 crores for this scheme which is sufficient to cover only 16 lakh beneficiaries.

The state government will have to actively work to ensure timely payments and coordination with oil companies based on the number of cylinders distributed to beneficiaries. Else, the scheme would come a cropper. The government has to initiate measures to cover all the eligible beneficiaries under this scheme.