Following the introduction of Direct Benefit Transfer for LPG (DBTL) scheme this year the Union Ministry of Petroleum and Natural Gas has blocked one crore illegal LPG connections. This led to an estimated saving of a recurring expenditure of Rs 3,948 crore annual subsidy.
Union Ministry of Petroleum and Natural Gas has mentioned that multiple LPG connections were short listed using software analysis by matching names and address and these customers were asked to complete a Know Your Customer (KYC) process.
Consumers who failed to submit the KYC form were blocked. The number of consumers thus blocked was one crore. This would lead to an indicative recurring subsidy savings of Rs 3,948 crore per annum at the rate of Rs 522.10 subsidy average of 2013-14 per cylinder and average consumption of 6.7 cylinders per connection.