DBTL hits hard LPG distributors
Source: The Sangai Express
Imphal, February 20 2015 :
Introduction of DBTL scheme has created some serious problems for the LPG distributors of Manipur and the same scheme is likely to give a serious blow to all distributors sooner rather than later.
In the meantime, LPG supply backlog which usually runs into over three months is steadily diminishing since the DBTL scheme was launched.
It is expected that LPG supply may improve considerably in the next couple of months.
According to information received from the Indian Oil Corporation, there were 3,82,414 LPG consumers registered with 59 distributors of the State before the DBTL scheme was launched.
But now the total number of consumers has come down to 3,06,487 after multiple connections were disconnected and registration numbers of expired LPG consumers were cancelled.
Out of the remaining 3,06,487 active consumers, only 1,35,239 consumers have been enlisted under DBTL so far.
DBTL scheme would be implemented fully from the month of April.
By that time, the term 'active consumer' would not be applicable and only DBTL consumers would get subsidized LPG.
It is being estimated that the actual number of DBTL consumers would be reduced by 20 per cent from the existing total number of active consumers.
Even though the IOC has been hoping to enlist at least 80 per cent of the active consumers of Manipur under DBTL, it is quite unlikely.
On the other hand, there is a lurking fear that monthly incomes of LPG distributors would be reduced to half once the DBTL scheme is fully implemented.
In such a scenario, the distributors will be financially hit hard.
There is also a possibility that some LPG distributors may close down because they can no longer pay salaries of their staff.
At the moment, two distributors are facing an unwanted situation of permanent closure, informed the source.
Benefits received by distributors when LPG subsidy was given to consumers directly through them would disappear once DBTL scheme is implemented in totality.
In place of giving monthly salary, some LPG truck drivers were given up to 10 LPG re-fills in a month.
This would not be possible any more and domestic LPG cylinders would not be available in black markets.
In another word, distributors would not get any extra money above the profit entitled to them for distribution of LPG re-fills.
As such, DBTL scheme is likely to give a serious blow to LPG distributors, informed the source.