Direct Benefit Transfer of LPG Subsidy: A challenge in Manipur
Source: Hueiyen News Service

Imphal, December 16 2014: Implementation of Central Government's policy of providing subsidized LPG cylinders to customers has become an uphill task in Manipur state, considering the process of linkage of consumers' profiles with their bank accounts.

Poor banking services coupled with lack of awareness among the LPG consumers have delayed the process of linkage of consumers with their bank accounts.

Despite the deadline set for Direct Benefit Transfer of LPG Subsidy (DBTL) form submission being December 31, most consumers do not even have their bank accounts.

Moreover, the banks are not encouraging to open new accounts, and also to process for linkage to LPG consumers for DBTL scheme due to heavy workload.

In such a situation, majority of consumers will not be able to get subsidy under subsidized LPG scheme which will be implemented by April 2015.Consumers whose bank accounts do not have links with LPG distributors will have to purchase non-subsidized LPG cylinders at higher rates.

Hence, a huge amount of money will go outside the state while purchasing domestic fuel.

Price of a subsidized LPG cylinder in December 2014 is Rs.446.5/-, while that of non-subsidised cylinder is Rs.932/- .

Manipur has over 2.5 lakh LPG consumers getting their LPG cylinders through 56 agencies.

During the process of DBTL form submission, majority of the names of consumers are rejected on grounds of spelling mistakes, confusion over 'First name, middle name and last name' etc.

The problem of maiden names for the married women also arises in the process.

The procedure of 'Name Change' in order to process smooth registration is another headache for the LPG distributors.

Meanwhile, some agencies charge Rs 1500-2000 as fee for the name change in the consumers' accounts, while some other take only Rs 700/- .

Banking services are significantly poor and people of Manipur generally are ignorant in banking, lack habit of banking services.

According to reports, SBI in Manipur has not entertained documents for DBTL scheme.

Except the Manipur Rural Bank, all other banks of Manipur are not taking interest in the scheme.

Meanwhile, December 31, 2014 has been set as the last date for submission of DBTL documents to Gas Agencies.

January to March, 2015 is the grace period during which left-out consumers will be given the chance.

April to July is the parking period, when the subsidy provision will commence.

It is also learnt that some agencies provide DBTL forms free of cost to customers, while others charge Rs 10 as price for the form.

According to a source from an Imphal-based LPG Distributor which has 12,000 registered consumers, around 3000 consumers have so far submitted their DBTL forms, while the details for only 700 consumers have been uploaded by December 15.On the average, details of around 100 consumers can be uploaded in a day, said the source.

It also opined that the deadline for DBTL forms is not commensurate with the number of consumers to be registered and linked with their bank accounts.

On being asked about the provision of LPG cylinders, the source said that number of cylinders earmarked for an agency with 12,000 consumers is 5202 (17 loads).

However, the agency gets only 50-60 percent of the earmarked quantity.

In such a situation, provision of 12 cylinders a year to a consumer is impossible, it claimed.

The Sekmai Bottling plant has not undertaken Challan booking and cylinder supply for the last three months, due to non-availability of internet connection, the source alleged.

Even though hill districts have a number of consumers, the market is at Imphal.

Black marketing is encouraged in the hill areas, where the LPG consumers lack awareness, it added.

It is also alleged that during cylinder delivery, some distributors issue cash memos which are not matching with consumers' name.

The state government and IOC need to undertake a survey of the LPG consumers in remote areas and the banking facilities available.

The deadline for bank linkage also needs to be extended considering the lack of banking facilities in Manipur.

Moreover, the nationalized banks are also required to entertain the registrations for LPG consumers by devoting additional staff, while the government may arrange for widespread awareness to the LPG consumers.

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