Government Tightens LPG Subsidy System via PAHAL, Aadhaar Authentication: Hardeep S Puri

New Delhi: In a significant move to improve the distribution of LPG and make subsidy transfers more efficient and transparent, the Government has strengthened key reforms under the PAHAL scheme and Aadhaar-based verification mechanisms. Union Minister for Petroleum and Natural Gas Hardeep Singh Puri informed the Rajya Sabha on August 5 that over 4.08 crore fake, duplicate, or inactive LPG connections have been blocked, suspended, or deactivated to prevent misuse of subsidized domestic gas cylinders.

The Minister explained that the implementation of the Direct Benefit Transfer for LPG (DBTL) through the PAHAL scheme has been essential in eliminating ghost accounts, multiple connections, and commercial misuse of domestic LPG. Launched in January 2015, the PAHAL scheme ensures that all domestic cylinders are sold at market prices while the subsidy amount goes directly to the consumer's bank account. Consumers receive notifications for each transaction stage through SMS. This includes booking, delivery, and confirmation of the subsidy deposit. If a transaction fails, the system alerts the consumer and provides instructions for corrective action.

In another step to boost transparency and consumer empowerment, the government has introduced a nationwide IVRS/SMS-based refill booking and notification system. This keeps consumers informed at every stage, including refill booking, cash memo generation, and delivery. A Delivery Authentication Code (DAC), created upon booking, must be shared with delivery personnel to verify the transaction at the doorstep.

He also highlighted ongoing biometric Aadhaar authentication drives to verify beneficiaries under both PAHAL and the Pradhan Mantri Ujjwala Yojana (PMUY). As of July 1, 2025, about 67% of existing PMUY consumers have completed biometric Aadhaar authentication, and all new connections now require it before issuance. Aadhaar linking to OMC databases has seen significant success, with 92.44% of active consumers and 86.78% of DBTL beneficiaries now compliant.

To remove ineligible beneficiaries, the government conducts regular data deduplication through the Common LPG Database Platform. This uses various identity parameters such as Aadhaar numbers, bank details, ration card information, and household data to identify and eliminate duplicates. As a result, 8.49 lakh PMUY connections have been terminated since the scheme began. Inactive accounts without refills after connection have led to the deactivation of about 12,000 such accounts, identified through a Standard Operating Procedure introduced in January 2025.

Field officers from Oil Marketing Companies, along with officials from vigilance, anti-adulteration, and quality assurance units, continue to inspect and conduct surprise checks at distribution points, showrooms, and godowns. These efforts help ensure compliance and prevent diversion or malpractice. Inspections follow the legal framework provided by the “Liquefied Petroleum Gas (Regulation of Supply and Distribution) Order, 2000,” along with Marketing Discipline Guidelines that mandate penalties for erring distributors.

To reduce transaction failures, which often happen due to Aadhaar deregistration, inactive accounts, or bank mergers, the Ministry has increased focus on resolving backend issues. The government’s effort to ensure Aadhaar compliance across consumer records has helped significantly reduce failures, and most successful transfers now occur within two days of delivery.

During 2024–25, around 194 crore LPG refills were delivered across India, and complaints were registered for only 0.08% of them, with the majority related to subsidy credits or delivery timelines. Shri Puri noted that this low complaint rate highlights the strength of the current delivery and subsidy transfer system.

A third-party evaluation by the Research and Development Initiative (RDI) found that over 90% of beneficiaries are satisfied with the subsidy system. The study recommended further improvement of the grievance redressal process and better targeting of subsidies towards economically weaker sections. It also suggested expanding safety and awareness initiatives through local languages and mass media.

The government has continued to enhance consumer support systems. LPG users can now file grievances through a toll-free helpline, the CPGRAMS platform, OMC websites and apps, chatbots, WhatsApp, social media, or directly at distributor offices. For safety-related emergencies, a dedicated helpline at 1906 is available 24/7.

Through these measures, the government aims to reinforce trust, efficiency, and transparency in India’s LPG distribution and subsidy system.