Thursday, May 9, 2013

LPG subsidy and Aadhaar

LPG subsidy scheme for aadhaar card holders is yet to launch in India. While some states and districts will launch the scheme within this month, there will be some additional time given to people who have not obtained aadhaar card yet.

In Andhra Pradesh, the scheme will launch from May 15, 2013, however the subsidy will also be available to people who do not have a UID number yet, until August 15. More than two million people in AP do not have a UID number at this time.

Similarly other states will continue providing subsidy to non-aadhaar card holders for a few more months.
This process should ensure that non-aadhaar card holders have sufficient time to obtain a UID number.

A question to consider is whether it is fair for the government to launch this scheme.

The main benefit of launching this scheme is that people will not be able to have duplicate LPG connections, which is a widespread practice throughout India which goes unnoticed by the government. Aaadhaar card holders will not be able to get away with multiple LPG connections.

All of this sounds good, however the subsidy process itself does not make much sense. The LPG consumer will first have to pay around INR 900 and will then get over INR 400 directly transferred to the bank account. This will create a huge amount of extra work for financial institutions/post offices etc. and will utilize enormous amount of resources - which is not really needed.

Most consumers are not satisfied with this scheme, however a common man can not spare time to protest against such impositions. He is too busy trying to make a living. However, if schemes like such continue it is quite possible that the current government will not be able to stay in power after the next elections.

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