LPG subsidy scheme

LPG Subsidy Scheme: Pros, Cons, Success Rate and Recent News

LPG Subsidy Scheme, popularly known as PAHAL, was launched by Narendra Modi Government, where the citizens living below poverty line gets a new LPG connection with the subsidized amount of the rich/middle-class people (who sacrificed their subsidy voluntarily).

This scheme was primarily launched to facilitate rural development. In a country having 125 crores population, there are many people who do not need any subsidy in LPG gas but were paying the same amount no matter he needed the subsidy or not. So the government came up with an idea, where people could voluntarily give up their subsidy and the government used the same amount to give a new connection to the poor as they can’t afford it.

LPG subsidy scheme

What is The LPG Subsidy Scheme?

The LPG Subsidy scheme introduced as PAHAL by Narendra Modi was initially launched in 54 districts when it started in 2014. By 2015, the scheme covered all the 622 districts remaining. The PAHAL or Pratyaksh Hanstantrit Labh Scheme states that there will be a direct benefit transfer of LPG subsidy that is given for domestic use. Initially, when the scheme started, the LPG subsidy was directly linked to the bank account via the Aadhaar Card under DBTL (Direct Benefit Transfer LPG). But the individuals who did not have an Aadhaar ID suffered. Thus the scheme was re-launched for the benefit of everyone, where CTC (Cash Transfer Compliant) was possible under PAHAL even if they do not have any Aadhaar card. But the CTC was only a two-month grace period given. Thereafter, Aadhaar is mandatory for LPG subsidies after 30th November.

Since LPG is a government provided service, there should be no money charged for transportation and direct delivery of LPG subsidies. Only the cost of the LPG is to be directed to the government. Thus, the mission of the PAHAL Scheme is providing cashless LPG Subsidies to households to maintain a transparency in the market.

What are DBTL and CTC?

DBTL is Direct Benefit Transfer LPG where the amount paid for LPG subsidies will be directly deducted from the bank account linked to the Aadhaar Card.

CTC is Cash Transfer Compliant where the bank account can be directly linked without an Aadhaar card in order to pay for LPG subsidies.

Update: This scheme is not available anymore.

What is the Success Rate Of LPG Subsidy Scheme?

  • PAHAL has reached a major milestone with generating saving up to 21,000 crores by 2016. More savings are expected by the end of this fiscal year.
  • In the face of demonetization, the dependency on PAHAL has increased as it promotes cashless transaction. Thus an increase in the number of LPG subsidies has been seen. From 13 crore in 2014 when it started, the number of domestic subsidies have become 17.4 crores.
  • PMUY was introduced for the households below the poverty line. Under the PMUY or Pradhan Mantri Ujjwala Yojana, LPG connection is given to all the households below the poverty line at no cost.

What Are The CONS of LPG Subsidy Scheme?

PAHAL was introduced in good faith to start cashless provision of LPG subsidies, but it has gone awry in some places. India is divided into two parts: the under-developed and the highly developing. For the people in urban areas where development is fast paced, PAHAL through DBTL and CTC is possible. But when looking at the broader picture, the overall price indexing system has to be considered. The poorer sections of the society are falling in a disadvantageous position in this respect due to the lack of development.

The successful fulfillment of PAHAL scheme depends on factors like proper banking system and remote network connectivity. But neither exists in rural India. Thus over 10 million have given up LPG subsidies after PAHAL.

LPG Subsidy: Union Budget 2017

The Union Budget 2017 claimed that several schemes regarding the use of non-renewable resources was to be financially earmarked. A total of 25,000 crore INR is to be set aside for that purpose. The LPG Subsidy Scheme which revolutionized rural India is to gain a massive capital under this. Thus out of 25,000 crore INR an amount of 16,076 crore INR is to be credited towards LPG Subsidy. This is a huge step forward by the government for the betterment of those who cannot avail the services of cooking gas.

LPG Subsidy Recent News

  • In an attempt to eradicate all black money and dealings in India, a new scheme related to PAHAL has been introduced. It states that all domestic households are entitled to a subscription of 12 cylinders of 14.2kg each at government stated rates. If more cylinders are in demand by the higher income group (greater than 10 lakh per annum), they will not get a further subscription.
  • 12% of customers in Indore who had LPG subsidies have been denied subscription as they have not linked their Adhaar number to their accounts.
  • The PMUY (Pradhan Mantri Ujjwala Yojana), which aimed at providing LPG as a free benefit to the households below poverty line, has met with a huge success. Narendra Modi has successfully monitored the delivery of LPG connections in 15 million households over a period of 8 months.
Start Up India

Start Up India Loan Scheme: Review

Concept of Start Up India

The young ignited minds will help build a better India. And that is exactly the inspiration drawn by Narendra Modi when he launched the Start-Up India Scheme. The aim was to take the country to a level where innovations will lead the youth to embark on a journey from “Job Seekers to Job Creators“. Thus, the end result would be a developed nation with a stable economy. The Start Up India Scheme states that if any Indian citizen shows potential entrepreneurship qualities by presenting an innovative idea that promotes development, they will get a monetary support from the Government of India.

Start Up India

What Is A Start Up and How Will It Be Eligible For Startup India Loan Scheme?

The eligibility criterions as set by the government of India for a Start Up Organization avail financial aid under Start Up India Loan Scheme is as follows:

  • The organization must be independent and registered in India.
  • It should not be formed after division, modification or close down of any previously present organization.
  • The organization must not be an establishment older than five years.
  • The turnover of the company should not be more than 25 Crores annually.

Action Plan For Start Up India Loan Scheme

The action plan for implementation of Start Up India Scheme will be in these areas:

  • To provide technical guidance to a Start Up organization to simplify their working plan and if required modify their innovations to get better results.
  • Support a Start Up organization with proper funding and provide good incentives.
  • Involve a Start Up organization with Incubators and help them partner with well established Industrial and Academic Institutions.

 Loan Value Under Start-Up India Scheme

The scheme, Start Up India was announced on 16th January 2016 and was officially launched on 1st April 2016. Under this scheme, if any organization with innovative ideas for development is considered as a “Start-Up” by the Government of India then a loan be extended to the organization. The amount of loan will range from 10 Lakhs to 100 Lakhs according to the requirement and set norms. Parallelly a scheme known as Stand Up India will be launched with similar facilities to promote entrepreneurship among women, SC/ST and Other Backward Classes.

Features Of Start Up India Loan Scheme

The key features of Start Up India Scheme are:

  • The registration to apply for Start Up India loan will be done via online application forms.
  • A system to self-certify a Start Up has been introduced.
  • To provide proper online support a web domain and a mobile app will be developed which will be dedicated to the Start Up organization.
  • The organization will not be inspected for the initial three years.
  • Exemption from Income Tax for the first three years.
  • Innovation promoting courses will be started under the Atal Innovation Mission.

An important point to note while applying for Start Up India is that the Start Up organization will be exempt from tax deductions unless it gets a certification from Inter-Ministerial Board.

Startup India: Registration Procedure

All aspirants who wish to register for the Startup India Scheme must follow either of the two options:

  • An individual can register himself or herself via a MCA or through Registrar of Firms. Simultaneously they have to register themselves officially on the web portal of Startup India.
  • The second option is to make the complete application through the Startup India mobile application. Though mostly it is recommended that this mobile application process is followed as it is an easier one. Registering via MCA or Registrar firms had to be done previously as the mobile app was not built.
railway travel insurance

Railway Travel Insurance Scheme: Review

What Is Railway Travel Insurance Scheme?

Narendra Modi launched the Railway Travel Insurance Scheme on 1st September 2016, to ensure safer journeys via Indian Railways. This is another revolutionary government scheme that aims at providing complete insurance to a person if they become a victim of an unfortunate train accident. The aim is to provide better accident relief facilities and ensure an overall safety as far as Rail journeys are concerned. The insurance cover that can be claimed is up to 10 Lakhs.

railway travel insurance

How To Apply For Railway Travel Insurance Cover

After booking and generation of E-Ticket via IRCTC website, an SMS will be sent to the citizen who has booked the ticket. That SMS will state that the Railway Travel Insurance can be availed by paying a nominal amount of 92 paise per passenger. Also, a link will be given in the SMS from where the user will be redirected to apply for the insurance. This insurance is, of course, optional and a citizen may or may not avail it as per will. Also, this insurance option is available to all passengers irrespective of the class and status of the ticket. Therefore, all confirmed, waitlisted and RAC passengers can avail this insurance.

Exemptions In Railway Travel Insurance

There are certain criterions under which a passenger cannot avail Railway Travel Insurance. They are as follows:

  • Any passenger traveling by local or suburban trains cannot avail this insurance.
  • This insurance is applicable only if the passenger is above 5 years of age.
  • Foreign citizens cannot avail this insurance.

This premium amount of 92 paise per passenger is non-refundable and hence will not be credited in case of cancellation of a ticket.

Compensation According To Railway Travel Insurance Scheme

As per the set norms, the amount of compensation in case of an untoward accident is as follows:

  • In case of death and complete physical disability: 10 Lakhs
  • In case of semi-physical disability: 7.5 Lakhs
  • In case a person needs to be hospitalized due to serious wounds: 2 Lakhs
  • Transporting mortal remains after an incident like dacoit attack, Riots, Shooting, etc: INR 10,000

To conclude, the Railway Travel Insurance Scheme is a necessary step that had to be taken, for the Rail Department to take better care of their passengers and avoid any unwanted accidents by being more alert about the track conditions, foggy weather or potential attacks.

Railway Travel Insurance Scheme: Application Policy

Railway Travel Insurance Scheme offers compensation, but that is liable to certain terms and conditions. The application policy states that the intimation towards claiming the premium should be made within four months within occurrence of the untoward event that demands a compensation. Then the claim will be approved by the Railway Insurance Department and the premium will be processed within 15 days. The compensation will be extended towards the aggrieved in form of a cheque of the premium amount. Thus the application and cancellation policy are flexible as it occurs within a short period of time.


10 Things You Need To Know About GST

The Union Budget 2017 that was introduced by Arun Jaitley on 1st February 2017 stated that the GST bill is to be implemented from 1st July 2017. Both the central and state government have signed an agreement in order to commence the implementation of GST. Though in its initial years post demonetisation, GST will be difficult on the operation form, but here the future is being considered. Thus, even though a tough stride has to be taken to maintain the GST reform initially it will help generate excellent revenues in future. Thus the fiscal year 2017-18 is very crucial with the advent of GST bill.

What is GST?

GST stands for Goods and Services Tax. The GST bill was to be launched long back in April 2014, but since it faced opposition it will finally be levied from 1st April 2017. The GST bill is the 122nd amendment of the constitution which will bring one of the largest economic waves in the country. The bill states that every state, region and district in India will follow a common taxation structure in case of goods, products and services delivered. This will lead to the demolition of other taxes like state level service tax and state level VAT( Value Added Tax). This unification in taxation system will ensure a stable economic system and will completely abolish corruption in market transactions.

What other changes will be seen in the constitution on the issue of GST bill?

With the 122nd amendment being issued an Article will be added in the constitution stating that the right to legislating GST will lie with the Central and the State Governments.

What is the governing body responsible for GST framing?

A governing body known as GST Council will be formed to legislate the GST. The chairman of this council Finance Minister at the Central level and the State Finance Minister at the State level. At State level, there can be changes as per nominated by the State Government. The other ministers who will be part of this council will be nominated from the Finance department at both Central and State Level.

What is the framework for implementation of GST?

The GST is divided into two parts: The State Goods and Services Tax (SGST) and the Central Goods and Services Tax (CGST). Both SGST and CGST will be simultaneously levied for market transactions. The Central Government will be responsible for collecting the CGST and the State Government will be responsible for collecting the SGST.

How will the CGST and SGST be decided?

The GST Council will be responsible for taking all decisions regarding levying GST at both Central and State level. They will be reviewing the market rates of all the products and applying the unified tax rates on all goods and services.  The GST council may also decide to waive taxes on certain goods and change the uniform rates based on their discretion.

What are the exceptions to GST scheme rule?

All alcoholic liquor will not come under GST and will be exempted from the taxes levied by GST. Also, non-renewable fuel resources will fall under varied rates as decided by the GST council. They will not be subject to the unified rate.

How will GST function in case of the Inter-State trade framework?

In the case of inter-state trading, an additional 1% tax will be levied apart from the GST. This tax will have to be paid for demand and supply of goods.

What if a State incurs heavy losses under the GST Scheme?

In the case of major losses incurred by any State under the GST Scheme, the Council will compensate for the losses by paying the lost funds to the State for a duration of 5 years.

What will be the positive results of issuing GST?

The economic worth of a country is defined by its GDP rate. This system of unified taxation would mean a complete transparency in market taxation systems and an equality as far as economic gains due to taxes are concerned. This would also mean better trading systems as GST will affect the export of goods. As a result, an increase in GDP will be seen. Thus the stability of economic system will be retained, giving a profit turnover of over 10 billion dollars in India.

What will be the CONS of GST system?

The GST will be issued in accordance with the global market taxation scheme. The global range of taxation is 14% to 22%. Thus the average range is seen to be between 18%-20%. So the GST issued will levy an 18% tax on all goods, products as services. While this will maintain uniformity, certain tax values which were originally low will now rise.

Direct Benefits Transfer

Direct Benefit Transfer – What is DBT Policy, Pros and Cons

What is DBT Policy?

DBT stands for Direct Benefit Transfer is a government scheme via which all subsidies taken by a citizen is directly transferred to the bank account of the beneficiary if a citizen is below the poverty line. The primary aim of DBT is transparency in the process of monetary benefits transferred by the government whereas charging subsidies below the poverty line are concerned.

Direct Benefits Transfer

How Is DBT Implemented?

The Direct Benefit Transfer implementation is made via the Aadhar card. The Aadhar card has the unique identity number of every citizen and is directly linked to their account. Thus using the Aadhar number it is possible for benefits to be transferred from the government so that subsidies can be given to individuals who are living below poverty line. Another major reason for taking this step is to eliminate excessive poverty in the country. Plus using an Aadhar number to transfer the money, would also ensure complete transparency and hence eliminate any means of corruption in government funding schemes.

PROS of Direct Benefit Transfer

The benefits that are observed through the implementation of this scheme are as follows.

  • It eliminates black money pilferage and ensures complete transparency in transactions.
  • DBT is an organized process that helps the financially unstable citizens of our country to gain benefits in subsidies like LPG with minimum effort and saves their money.
  • The poverty line is reduced and thus the financial gap in the community is somewhat bridged.
  • Since it is a government initiated scheme, there are no faults in the subsidies or delay in delivery of services.
  • Since subsidized gains are portrayed transparently in the market, there is proper regulation of the market price framework.
  • Economic finances circulated by the government will ensure some rise in the GDP.
  • These subsidies will help the rural people in the following areas: health services, the growth in net worth of a rural farmer, simplicity in the distribution of funds.

CONS of Direct Benefit Transfer

  • The subsidies will be funded by the government as the money will be directly transferred to the bank account. This will mean more money in the hands of the rural citizens below the poverty line. Now, India is not a completely developed country, so it can be possible that the citizen is not educated enough to use this extra money where it is aimed at. Via DBT there are no means to monitor how the money once transferred is being handled, which can be a huge demerit.
  • The number of bank branches in rural areas is less. There are no steps being taken to look into that. Therefore, it may sometimes not be possible for rural locales to withdraw the money at desired time.
  • In rural areas, people are more conservative. Thus it is obvious that most bank accounts have male beneficiaries. Thus the money can be withdrawn only under their name, whereas the female rural locales may be completely denied of any advantage that DBT offers. This is again a case where money pilfered illegally by one individual will negatively affect another, and the government has no ways to keep tabs.
government schemes by Modi

List Of Government Schemes Started By Modi Government In 2016-17

The reign of Narendra Modi as the Indian Prime Minister is inspiring, eclectic and an epic stamp that will be marked in the pages of Indian history. His relentless fight against corruption has lead to the issue of a list of government schemes that has turned the face of India. 2016 has been one turning point under the Modi government. Demonetisation has taken the entire nation by storm. So, as Modi hits the bulls-eye in his fight against corruption, the citizens of India should be educated about the other schemes of Narendra Modi in the fiscal year 2016-17.

government schemes by Modi

List of Government Schemes By Narendra Modi in The Year 2016-17:

  • Startup India Scheme: 16th January 2016

This scheme aimed at building a better India by supporting the ignited minds that thought of new startup businesses. These businesses if commenced would lead to the overall benefit of the nation. Thus under Startup India, the government extended funds towards these individuals and organizations that would be recognized as a potential startup.

Read More: Startup India Loan Scheme Review

  • Goods And Service Taxes Bill: 1st April 2016

The idea of this bill was developed long back, but Modi and Arun Jaitley came together at the beginning of the fiscal year 2016 to promote its immediate introduction. This bill states that a common service tax will be issued on all products across India and completely demolish state level taxes implied on goods.

Read more: GST and its benefits

  • Start-up India Loan Scheme: 5th April 2016

This scheme aims at providing financial aid to all aspirants who dream of opening their own businesses. A primary amount of  1 crore will be furnished to them after verifying their idea and the potential returns. This mainly aims at diminishing brain-drain and enabling development.

Read more: Startup India Loan Scheme

  • Gram Uday Se Bharat Uday Abhiyan: 14th April 2016

It states that promoting proper governance in rural India is mandatory for the overall development of the country. Thus this scheme aims at setting up an organized rural Panchayat in order to make the villages more self-sustained.

  • Pradhan Mantri Ujjwala Yojana: 1st May 2016

Pradhan Mantri Ujjwala Yojana is another welfare scheme started by Modi in order to provide LPG connections to domestic households that fall under the below the poverty line category. Basically, the scheme aims at providing a proper cooking fuel that will, in turn, improve the health of these poverty struck families.

  • Pradhan Mantri Surakshit Matritva Yojana: 9th June 2016

This scheme by the Modi government aims at providing free health checkups for pregnant women for the first 6 months of pregnancy. Also, a benefit of this scheme is a free treatment for the pregnant woman on the 9th of every month.

  • Vidyanjali Yojana: 16th June 2016

Vidyanjali Yojana has been introduced to provide equal primary education to all budding children across India. The action plan is that volunteers will provide free primary education in all rural government schools.

  • Gangajal Delivery Scheme: 10th July 2016

This scheme was launched in the state of Bihar to provide clean water of the Ganges to domestic areas via postal services.

  • Mission Bhagiratha In Telangana: 7th August 2016

The problem of safe drinking water in Telangana district was solved with the introduction of this scheme. It aims at building a proper pipeline and filtering infrastructure in order to provide clean water for drinking purposes and household use.

  • Smart Ganga City: 13th August 2016

This scheme was launched in 10 cities located on the banks of Ganga. The action plan is to provide proper sewage discharge by establishing sewage treatment plants.

  • National Apprenticeship Promotion Scheme: 19th August 2016

The National Apprenticeship Scheme states that according to the government of India, a monthly stipend of INR 1500 must be paid to all apprentices by the private and government companies that employ them.

  • Railway Travel Insurance Scheme: 1st September 2016

This scheme states that an insurance of 10 lakhs will cover each passenger traveling by Indian Rail while booking a ticket if an amount of 92paise is paid. It aims at providing proper accident relief in case of any major mishaps.

Read more: Railway Travel Insurance Scheme

  • Uday Desh Ka Aam Nagrik (UDAN Scheme): 21st October 2016

UDAN Scheme aims at providing affordable aviation by making domestic flight charges economically accessible for middle-class citizens of India.

  • Urja Ganga: 24th October 2016

Launched in Varanasi this scheme aims at providing cooking gas to all houses in the town of Varanasi and its neighboring areas along the banks of Ganga. About 50,000 domestic households have benefited from the Urja Ganga till date.

  • Ek Bharat Shrestha Bharat: 31st October 2016

Modi introduced this scheme to strengthen the bond between all the states, regions, and districts of India. This will involve a mandatory partnership between two states at a time and exchange of cultural and educational values between them.

  • Demonetisation-Cease of INR 500 and INR 1000 To Be Legal Notes: 8th November 2016

The end of 2016 was marked by demonetisation which collapsed the very foundation of every black money holder across India. Overnight the old 500 and 1000 rupees notes were withdrawn from the market and new currency notes of INR 500 and INR 2000 was introduced.

  • Pradhan Mantri Ujjwala Yojana: 23rd December 2016

This scheme aims at providing LPG connection to all domestic households in Maharashtra to solve their problem of limited cooking fuel for regular use.

Read more: Pradhan Mantri Ujjwala Yojana

  • Cashless Transaction Scheme: Effective From 2017

A supporting scheme for demonetisation, the idea is to promote cashless transactions via the unique Aadhar Card issued to the citizens of India. The bank account will be linked to the Aadhar card in order to enable complete cash-free transactions.

  • Union Budget Scheme: 1st February 2017

Effective from 1st February 2017, a Union Budget will be drawn by the Modi Government to support all transactions post demonetisation. This will include lower rates of interest on home loans and will largely affect the real estate sector in a positive manner. This bill will result in increased profitability for the citizens of India in other sectors as well.

Needless to say, we all see hopes for a new India under the governance of Modi.