Benefits of Linking Aadhar to LPG Connections

Aadhar cards are the unique identification cards which are based on biometric identification of the citizen and required to be linked to their bank accounts. These days, subsidies on gas cylinders are not provided from dealers. These are transferred to the account of beneficiaries under Direct Benefit Transfer scheme. It is designed to transfer scholarships, subsidies, and other welfare aids to the bank accounts of beneficiaries. Launched on August 28, 2014 to provide universal access to banks, Pradhan Mantri Jan Dhan Yojana helps beneficiaries to open bank accounts with no balance.


  • Middlemen have been eliminated and subsidies are provided only to the genuine beneficiaries
  • Aadhaar card is based on biometric identification. So, it completely eliminated duplicate and fake IDs. Check this for status
  • DBT scheme promotes time-bound transfers and avoids delays in money transfer.
  • It also eliminates rants and middleman on gas agencies as benefits and subsidies are credited to bank accounts directly. It helps promote Indian economy in long run as it reduces structural expenditure.
  • Transparency is ensured in the distribution of subsidies.
  • As everyone buys commodities at market price, there is healthy competition between the sellers. It eliminates the middlemen who are diverting subsidized items.
  • It also convinces people to have their own bank account.
  • It also eliminates the issues of food grains storage as well as spoilage in the process.
  • It promotes the circulation of money which can cause a huge rise in GDP.
  • It helps the country to become a cashless economy.

Narendra Modi’s Prime Minister Office has fixed the domestic gas subsidy at Rs. 568 per cylinder borne equally by national oil companies and the government. The PMO has decided to keep the price unchanged during the financial year ended March 2015. After that, the price varies according to change in market price.

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