Centre makes Aadhaar compulsory for LPG subsidy

5th Oct 2016
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The government has now made Aadhaar mandatory for availing cooking gas (LPG) subsidies, but has given a two-month grace period for citizens to get the unique identification number. The government currently gives 12 cylinders of 14.2 kg each at subsidised rates per household in a year. The subsidy on every cylinder is transferred in advance directly into the bank accounts of individuals, who then buy the cooking fuel at market rates.

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An Oil Ministry order said,

Individuals desirous of availing LPG subsidies are hereby required to furnish proof of possession of Aadhaar or undergo Aadhaar authentication.

For those not yet having Aadhaar, it gave time till November 30, 2016 to make an application for enrolment for the unique identification number. Oil marketing companies have been asked to facilitate enrolments.

Till the time Aadhaar is assigned, an LPG subsidy would be transferred based on bank photo passbook and Aadhaar enrolment ID slip, or the voter ID card, ration card, kisan photo passbook, passport or driver license of the receiver of the subsidy, along with a copy of the request for Aadhaar enrolment. Also, an undertaking in a set format has to be given that the individual is not availing LPG subsidies under some other consumer number of an oil marketing company, the order said.

This notification shall take effect immediately in all states except Assam, Meghalaya and Jammu & Kashmir, the order said.

The Ministry said the use of Aadhaar as an identifier for the delivery of services/benefits/subsidies simplifies the government delivery processes, bring in transparency and efficiency, and enables beneficiaries to get their entitlements directly. Adding that the provisions of the Aadhaar Act and Regulations under the Act came into effect from September 14, 2016, it said,

Aadhaar obviates the need for producing multiple documents to prove one's identity.

Also readAadhaar is a game-changer, growth story equivalent to Facebook’s: Sahil Kini


As the LPG subsidy is an expenditure incurred from the Consolidated Fund of India, the Ministry said it is notifying use of Aadhaar as a mandatory requirement for availing of the benefit.

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