No Aadhaar, no LPG subsidy

Gas cylinder subsidy will be transferred only to those consumers who get their Aadhar number linked to LPG consumer number, insists petroleum ministry in spite of Supreme Court order to the contrary

By Jyotika Sood
Last Updated: Saturday 04 July 2015


In blatant violation of Supreme Court orders, the Union petroleum ministry continues with its stand on linking Aadhar numbers with LPG cylinder subsidy. The ministry and the three oil companies that supply gas cylinders to consumers have given a grace period (varying from city to city) to consumers across the country to update their Aadhaar number with their LPG consumer numbers failing which people without Aadhaar won’t be eligible for any subsidy. Aadhaar is a 12-digit unique number issued by the Unique Identification Authority of India (UIDAI), a body formed by an executive order.

In a press release issued on Monday, the ministry stated: “At the end of grace period of each phase, LPG cylinders will be sold to all domestic LPG consumers at market price. However, the subsidy will be transferred to only those who have linked Aadhaar number to LPG consumer number and bank account and others will not get any subsidy.”

The call centre executives of oil industry helpline available at toll-free number 18002333555 will inform LPG subscribers about the grace period which varies from region to region. For Delhi and Mumbai where direct benefit transfer for LPG (DBTL) is being implemented today onwards, the grace period is 90 days. When Down to Earth asked the helpline staff about what would happen to consumers who don’t have Aadhaar number, the reply was terse: “You won’t get any subsidy and have to buy at market price only.”
The call centre staff said the grace period varies from the time DBTL is launched in a district. Currently, LPG subsidy is around Rs 550 per cylinder and with a limit of nine cylinders in a financial year, the subsidy adds up to Rs 4,950 a year.

Violation of SC order

The action and response by the petroleum ministry and oil companies has come despite the apex court bench saying that the “Centre and the state governments must not insist on Aadhar cards from citizens before providing them essential services”. The direction was given last September.

Criticising UIDAI in its order, the apex court had said the Aadhar number is not necessary for important services. The apex court passed the order stating the Aadharr was "voluntary" in nature. The directions had come following public interest petition filed by K S Puttaswamy, a retired judge of the Karnataka High Court.

The petroleum ministry seems does not appear to be bothered by the apex court order. The ministry states that the DBTL scheme so far has been a “stupendous success”. More than 40 million cash transfers to the consumer bank accounts has been made wherein a total sum of over Rs 2,000 crore has been transferred to beneficiaries. It claimed that the scheme aims to curb leakages and prevent black-marketing and provide subsidy to the consumers to their bank accounts.

Pulling out all the stops

The ministry along with three oil marketing companies that have been providing LPG cylinders under brand names Indane, Bharat Gas and HP Gas are undertaking various initiatives to ensure linking of Aadhar with LPG subsidy. The four are advertising on their websites and leading dailies, asking people to avail of LPG subsidy through Aadhar. Drop boxes to collect bank-aadhar linking forms have been placed at all distributor offices and emails and phone messages are being sent. Besides, cash memos are also being stamped to communicate need for Aadhar linkage to get subsidy in bank account.

As per the scheme, all Aadhaar-linked domestic LPG consumers are getting an advance in their bank account as soon as they book their first subsidised cylinder before delivery. On the delivery of the first subsidised cylinder, the next subsidy gets transferred to their bank account, which is available fo the purchase of the next subsidized cylinder at market rate.
Despite repeated attempts, officials from oil ministry were not available for comments.


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  • Looks like we are really

    Looks like we are really living in a "Banana Republic".The government even does not respect the apex courts order.Pathetic State of Affairs.

    Posted by: Anonymous | 6 years ago | Reply
  • Unfortunately, we talk of

    Unfortunately, we talk of violation of SC order with out going into the issue SC gave its order. Let me give some background on this.

    I was advocating to give input subsidy to farmers directly rather than to industry. In this connection I submitted my proposal to PM and as well to Planning Commission. In 2009 two professors from IIM Ahmadabad prepared a report suggesting to continue the policy of giving input subsidy to industry. I sent my counter argument to the Professors. Later, the same I sent to PM. I also voiced this through All India Radio National Network talk. In this I also presented food wastage in India by 40-50%. Around this time Finance Minister in February 2010 in his budget presented that cash subsidy will be given directly to beneficiaries in the case of input subsidy, gas & kerosene [later two are under PDS]. After this some MPs from my state submitted a letter to PM in person asking the government to give input subsidy to retail outlets. Then again I sent my counter on this to PM. Finally Ministry of Chemicals & Fertilizers, Dept. of Fertilizer sent me an official letter referring my letter to PM saying that they are implementing what I proposed -- input subsidy directly to farmers -- and said they appointed a committee to look in to the mode of payment. Later the committee submitted its report. This includes fertilizers, Kerosene and gas. For to achieve this goal they proposed the Adhhar Card.

    If this is implemented, the wastage to the tune of 40-50% will come down. They same could be utilized to other schemes. Why media and people, SC talk against Addhar Card. Why not people get it. When you want to go abroad, you need a passport. Are we not getting the passport? or we going to airport without a passport? Same is the case here. Why not educate people to get Addhar Card instead of voicing against it. Let us do some positive things and not encourage negative things.

    Even in drinking water supply and power supply the wastage is around 40 to 50%. Where this money is going? On the contrary, the genuine bill payers are taxed every other day. At the same time increasing the salaries and other perks to government employees and politicians without following any norm. Just following political game -- just before elections, to get their support to ruling party. In Andhra Pradesh around 35 to 40% is going in to this drain. Yey they work with bribes!!!

    Think postively

    Dr. S. Jeevananda Reddy

    Posted by: Anonymous | 6 years ago | Reply
  • Good work Dr Reddy.

    Good work Dr Reddy.

    Posted by: Anonymous | 6 years ago | Reply
  • HI All, I think goverment is

    HI All,

    I think goverment is doing corruption in GAS, Aadhar submission could be necessary but subsidy transfer to account is a nonsense thing.I assume pubic will be in trouble for subsidy. More often they will run to bank and GAS agency for subsidy money.

    Posted by: Anonymous | 6 years ago | Reply
  • What a good plan. Government

    What a good plan. Government will make money and bank also. Public will be in trouble for subsidy cash.

    Posted by: Anonymous | 6 years ago | Reply
  • Our LPG cylinder was

    Our LPG cylinder was cancelled by the company this year without giving any notice. My father had booked it on Jan 3 and when we checked after a week, we were told that cylinder was never booked. Is it because we haven't updated our Aadhaar. We don't have aadhaar.

    Posted by: Anonymous | 6 years ago | Reply
  • My sister has LPG connection

    My sister has LPG connection of Bharat gas. She is in USA and obviously, she has no Aadhar Number. What happened if we want to book cylinder? There is any clause for such client, who is outside India?

    I would like to get response from you by email only.

    Posted by: Anonymous | 6 years ago | Reply
  • Hi, First let me tell u one


    First let me tell u one thing, if u go to a village and see, there are lots and lots of labor and farmers, for whom it is a day by day task to get money for their living and they do not have any passport, and u r asking them to pay Rs. 1350 stating that remaining amount will be submitted in their banks, even they do not have a ATM center in their place and for ur kind info, to go to an ATM, they have to travel at least 3 hours to come to city, and for ur kind info, to make matters worse, the money what ur saying about is getting remitted only after one to two months, that too not fully for many, stating different reasons, then where will these guys bring that Rs. 1350, and the section what ur saying about is just some 20 to 30%, and the remaining 70% are in this state only, just pls do not sit in an AC room and say, I am not saying this just like that, I have done my project work on this and I have travelled to lots of places and giving this statement, even if u go to cities like Vizag, only some 40% is grown here, and remaining 60% is still in the same phase, even there are some places where getting gas itself is big deal and what can u expect from them, can u pls give some clarification on this

    Posted by: Anonymous | 6 years ago | Reply
  • Hi all its very good comments

    Hi all its very good comments pasted by all u guys,
    and its fact that its a new trick to make money for this government and i bet u that this new idea of government gonna cheat each and every citizen in India.
    And its almost a height of everything....

    And the government also know that many of the people are still not having Aadhar card so its a very good way to grab the remaining amount

    Posted by: Anonymous | 6 years ago | Reply
  • Hi, so many consumers are

    Hi, so many consumers are having more than one connection in their name. They will not get subsidiary for all. Those consumers are very much up set to know the govt decision to transfer the subsidiary in bank.

    Secondly some people are not having Aadhar card , they are very very upset regarding Govt decision to transfer the subsidy in bank account.

    Large number of citizens will suffer for getting subsidy through bank because they are not having Aadhar card. Govt should think again before compliment the decision.

    Posted by: Anonymous | 6 years ago | Reply
  • A common man does not

    A common man does not understand in what way he is benefited by this new system of subsidy transfer.
    Nowadays it has become child play for the government to create sensitive issues like Petrol price,gas price that affects every citizen of the country..undoubtedly the government will pay a heavy price in the forth coming elections.......

    Posted by: Anonymous | 6 years ago | Reply
  • Bharat gas Adar send subsidy

    Bharat gas Adar send subsidy but not joined my a/c sbi 31836005306
    chek mi all bank statement a/c
    hepl mi
    were is go my cash

    Posted by: Anonymous | 6 years ago | Reply
  • This is one another cheat and

    This is one another cheat and fool and is totally against public interests who in truth are anxious to get aadhar card.Many haven`t get yet does it mean agencies are not going to provide them gas cylinders.Absolutely nonsense.
    Ok,Of some will have therefore in regard to this I strongly advise that...
    It is truth that many may have more than one connection but transferring amount to the bank is hassle and extra labour.Why not authority subsidize after verifying addhar that one is having only one cylinder.
    Hope authorities will think about it.Other wise there will be severe consequences and people will get violent.Then That will be another against law of the country to bring violence.Thanks

    Posted by: Anonymous | 6 years ago | Reply
  • Disrespecting Apex Court's

    Disrespecting Apex Court's order reflects in itself the worst side of give & take politics at Center. DBTS can also be executed by linking the bank accounts through Voter Identity Card. So why so much importance to Aadhar................?

    Posted by: Anonymous | 6 years ago | Reply
  • Dr. S. Reddy, you may be

    Dr. S. Reddy, you may be right in the case of subsidy to farmers. If you want credit, you may take it.

    What is the purpose of Aadhaar Card? Is it solution to keeping & maintaining many cards?

    Instead it is just one more card people have to maintain. Under the name & nomenclature of Aadhaar, all personal information of the citizens have been made open. What is the guarantee that these info will not be shared to foreign country or some interested persons? Is there any security over these info? Has government taken any steps for these?

    Posted by: Anonymous | 6 years ago | Reply
  • Disgusting.. Having an Aadhar

    Disgusting.. Having an Aadhar card is a good idea but linking with basic necessity is fooling common man. We all shall take an action against the government

    Posted by: Anonymous | 6 years ago | Reply
  • Subsidy on LPG is an

    Subsidy on LPG is an unintended creation of the UPA Govt. In order to win state assembly elections the UPA did not raise the price of LPG whenever the petrol prices were revised upwards . From just Rs 50 in 2004 ( market price and govt price) the difference balloned to Rs 800 by 2014. Thus a new monster of LPG subsidy was created. A poor man gets Rs 400 wort of subsidised food grains through PDS ( after making endless visits ) while a rich man gets Rs 800 subsidy on LPG with just one phone call. This is total inversion of subsidy and it has to be set right. Aadhar is the tool readily available. The moment I linked my adhar, bank and lpg consumner number , I got credit in my account for purchase of first refill gas cylinder . Moreover, government has already announced voluntary renouncement of subsidy. How many rich Indians have renounced it ? Are we not a nation of hyprocrites ? Indians wanting to go to USA voluntarily get all their 10 finger prints recorded, get their eyes scanned but to direct subsidy to the poor and deserving, they will not obtain adhaar card . There is one more big benefit if the entire country gets adhaar card. In USA, visa fees of H1 remitted by Indian companies amounting to millions of dollars is lying with US government. We can get refund of this amount if India can provide something akin to Social Security which in this case is Adhaar . In fact this was the genesis of adhaar in its previous avataar as proposed by LK Advani. Let us stop being hyprocrites and co operate with the government of the day

    Posted by: Anonymous | 5 years ago | Reply
  • What is the last date to

    What is the last date to submit Aadhar card?

    Posted by: Anonymous | 5 years ago | Reply