PAHAL (DBTL) Scheme Delivers Improved Efficiency, Transparency and Consumer-Centric Reforms

Direct Benefit Transfer of LPG (DBTL)-PAHAL Scheme has been implemented since January 2015 for transparent and effective disbursal of subsidy across the country. Under PAHAL Scheme, all domestic LPG cylinders are sold at a uniform Retail Selling Price (RSP) and applicable subsidy to LPG consumers is transferred directly into their bank accounts.

Government continues to take measures on ongoing basis to ensure that LPG distribution and subsidy transfers in respect of domestic LPG consumers are efficient, transparent, and inclusive. Implementation of initiatives like the PAHAL (DBTL) scheme, Aadhaar-based verification, biometric authentication and weeding out of ineligible or duplicate connections have significantly strengthened the system of transfers of targeted subsidies.

PAHAL has played a crucial role in identification and blocking of ‘ghost’ accounts, multiple accounts, and inactive LPG connections, thereby helping curb the diversion of subsidised LPG for commercial use.

Government has taken numerous steps to remove ineligible consumers and improve subsidy transfer process, which include the following:

De-duplication through CLDP–

Government has also brought a Common LPG Database Platform (CLDP) through which duplicate connections are being identified and removed from the LPG database. Deduplication amongst LPG consumer database is done using Aadhaar Number, Bank Account Details, Abridged Household List (AHL) Temporary Identification Number (TIN), Ration Card Details, Name and Address as the key parameters.

Biometric Aadhaar Authentication Drive-

Aadhaar-based authentication for Direct Benefit Transfer (DBT) schemes enables accurate, real-time, and cost-effective identification, authentication, and de-duplication of beneficiaries, ensuring targeted delivery of benefits to the intended recipients. To strengthen consumer authentication, the Government had directed the public sector Oil Marketing Companies (OMCs) to undertake and complete biometric Aadhaar authentication of Pradhan Mantri Ujjwala Yojana (PMUY) and PAHAL beneficiaries. As of 01.11.2025, Biometric Aadhaar authentication has been completed for 69% of the existing PMUY beneficiaries. Further, all new PMUY consumers undergo Biometric Authentication before release of connections.

Weeding out of Ineligible Consumers- PAHAL has enabled the disbursement of the Targeted subsidy benefit to eligible PMUY consumers. Multiple steps have been taken to ensure that these benefits reach the eligible and targeted beneficiaries in an efficient and timely manner. Since its inception, as a result of comprehensive deduplication exercises undertaken, a total of 8.63 lakh PMUY connections have been terminated. Further, in January 2025, a Standard Operating Procedure (SOP) was issued for the removal of PMUY consumers who had not taken any further refills after the installation of their connection and till 1st November 2025, around 20,000 inactive PMUY connections have already been terminated following the SOP.

A comprehensive third-party evaluation was conducted by Research and Development Initiative (RDI). The study found that more than 90% of the respondents were satisfied with subsidy reimbursement mechanism. The report recommends strengthening the subsidy payment infrastructure and grievance redressal systems, along with improving targeting by limiting subsidies to economically weaker sections. It also highlights the need for sustained safety awareness and expanded outreach through local language and mass media campaigns to ensure better adoption and safe usage of LPG. Based on these findings, steps have been taken to further improve the efficiency, transparency, and outreach of the PAHAL scheme.