Government Strengthens LPG Subsidy Transfers Through PAHAL and Aadhaar Authentication: Hardeep S Puri

Government continues to take measures on an ongoing basis to ensure that LPG distribution and subsidy transfers in respect of domestic LPG consumers are efficient, transparent, and inclusive. This was stated by Shri Hardeep Singh Puri, Minister of Petroleum and Natural Gas, in written reply to a Starred Question in the Rajya Sabha. He noted that the implementation of initiatives like the PAHAL (DBTL) scheme, Aadhaar-based verification, biometric authentication, and the weeding out of ineligible or duplicate connections have significantly strengthened the system of transfer of targeted subsidies.

Shri Puri informed that, to enhance consumer empowerment and improve service transparency, the IVRS/SMS refill booking system has been implemented across the country in all LPG distributorships. Under this system, consumers receive SMS notifications at key stages — refill booking, cash memo generation, and refill delivery — enabling them to track their transactions and report any cases of wrong or non-delivery. He further stated that Oil Marketing Companies (OMCs) have introduced the Delivery Authentication Code (DAC), which is sent to the consumer via SMS upon cash memo generation and is required to be shared with the delivery personnel at the time of delivery, thereby ensuring authentication.

To ensure compliance and curb malpractices, the Minister mentioned that both regular and surprise inspections of LPG distributors are conducted by field officers of the OMCs. In addition, officers from Regional Offices, Zonal Offices, Divisional Offices, and Territory Offices, along with officials from the Anti-Adulteration Cell, Quality Reassurance Cells, and Vigilance Department, carry out random checks at distributors’ godowns, showrooms, delivery points, and en-route, to prevent misuse of LPG.

Shri Puri outlined the key reforms undertaken in subsidy transfers and strengthening of the system, which include:

1. Direct Benefit Transfer of LPG (DBTL) – PAHAL Scheme:
   The PAHAL Scheme has been implemented since January 2015 for transparent and effective disbursal of subsidies across the country. Shri Puri said that under the scheme, all domestic LPG cylinders are sold at non-subsidised prices and the applicable subsidy is transferred directly into the bank account of the consumers. Once the subsidy is credited, the consumer receives an SMS confirming the subsidy deposit. In the event of a failed transaction, the consumer is informed of the issue along with the necessary corrective action through SMS. He further added that PAHAL has played a crucial role in identifying and blocking ‘ghost’ accounts, multiple accounts, and inactive LPG connections, thereby curbing the diversion of subsidised LPG for commercial use. As of 01.07.2025, 4.08 crore duplicate, fake/non-existent, and inactive LPG connections have been blocked, suspended, or deactivated.
2. De-duplication through Common LPG Database Platform (CLDP):
   Shri Puri informed that the Government has introduced the CLDP through which duplicate connections are identified and removed from the LPG database. Deduplication is carried out using Aadhaar number, bank account details, AHL TIN number, ration card details, name, and address as key parameters.
3. Biometric Aadhaar Authentication Drive:
   The Minister said that Aadhaar-based authentication for DBT schemes enables accurate, real-time, and cost-effective identification, authentication, and de-duplication of beneficiaries, ensuring targeted delivery of benefits. The Government had directed public sector OMCs to undertake and complete biometric Aadhaar authentication of PMUY and PAHAL beneficiaries. As of 01.07.2025, biometric Aadhaar authentication has been completed for 67% of the existing PMUY beneficiaries. Further, all new PMUY consumers undergo biometric authentication before the release of connections.
4. Weeding out of Ineligible Consumers:
   Shri Puri stated that PAHAL enables disbursement of targeted subsidy benefits to PMUY consumers. Multiple steps have been taken to ensure that these benefits reach the eligible and targeted beneficiaries efficiently and in a timely manner. Since inception, as a result of comprehensive deduplication exercises, 8.49 lakh PMUY connections have been terminated. He added that, in January 2025, a Standard Operating Procedure (SOP) was issued for the removal of PMUY consumers who had not taken any refills after installation of their connection. Under this SOP, around 12,000 inactive PMUY connections have been terminated.
5. Reducing Transaction Failures by Enhancing Aadhaar Compliance:
   The Minister mentioned that while most subsidy transactions are completed successfully within two days of delivery, certain issues have led to transaction failures, including deseeding of Aadhaar from bank accounts, bank mergers, inactive Aadhaar numbers, and account closures or transfers. Focused efforts have been made to ensure that all consumers become Aadhaar Transfer Compliant. As of 01.07.2025, 92.44% of active LPG consumers out of a total 33.05 crore have their Aadhaar seeded in the OMCs’ database. Around 86.78% of the total 30.63 crore DBTL consumers are Aadhaar Transfer Compliant.

To regulate the distribution of LPG, Shri Puri informed that the Government has notified the “Liquefied Petroleum Gas (Regulation of Supply and Distribution) Order, 2000.” Additionally, OMCs have formulated “Marketing Discipline Guidelines” to be adhered to by LPG distributors. These guidelines provide for penal action against distributors found indulging in malpractice. In all established cases of irregularities in the marketing of LPG, action is taken as per the provisions of the Marketing Discipline Guidelines or the Distributorship Agreement.

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

During 2024-25, about 194 crore LPG refills were delivered to consumers, and complaints were received for only around 0.08% of these — mostly related to subsidy transfer or delivery delays — reflecting the overall efficiency of the system.

He also mentioned that the grievance redressal system for LPG consumers has been gradually strengthened and improved to enhance the overall consumer experience and service quality. Consumers can lodge grievances or complaints through the following mechanisms:

1. Toll-free helpline: 1800 2333 555 (for all consumer-related queries including subsidy issues)
2. OMCs’ official websites and mobile applications
3. Centralised Public Grievance Redress and Monitoring System (CPGRAMS)
4. Chatbots, WhatsApp, and social media platforms (Twitter, Facebook, Instagram), including MoPNGeSEVA
5. Helpline 1906: Dedicated for LPG accidents and leakages
6. Direct lodging of complaints at the distributor office