Once it comes into force, you will have to pay the full cost of the subsidised LPG cylinder to the gas agency and the subsidy component will be transferred to your bank account.
Currently, the price of a subsidised LPG cylinder in Delhi is R410.42, against the market price of R895.50. In case the cap on subsidised cylinders is raised from six to nine, the annual subsidy will come to about Rs. 4,500.
This means if your LPG connection is in the name of your spouse, parent, sibling or any other relative without a bank account, you will have to ensure they open one and also queue up for an Aadhaar number.
Government officials had initially proposed linking the subsidy to the Aadhaar number, but this was deferred since not all citizens have got one so far.
“Cash transfers will begin without waiting for the Aadhaar project to take off,” an official said.
Once the system’s penetration increases, the government will make the switch.