PAHAL Scheme
India has intensified efforts to streamline LPG subsidy distribution under the PAHAL (Pratyaksh Hanstantrit Labh) direct benefit transfer scheme in 2025. The government has deactivated over 4 crore duplicate or inactive LPG connections. This move aims to prevent fuel diversion and ensure subsidies reach genuine consumers. Aadhaar-based verification and biometric authentication have become central to these reforms, enhancing transparency and targeting.
About PAHAL Scheme
PAHAL is India’s flagship LPG subsidy transfer mechanism. It replaces indirect subsidy delivery by crediting subsidy amounts directly into consumers’ bank accounts. Consumers pay the market price for LPG cylinders and receive subsidy refunds digitally. The scheme covers over 33 crore active LPG consumers, making it the largest cash transfer programme globally. It promotes financial inclusion and reduces subsidy leakages.
Key Features and Mechanism
The scheme requires consumers to link their LPG consumer number with Aadhaar and a bank account. Biometric Aadhaar authentication is mandatory for all new connections under the Pradhan Mantri Ujjwala Yojana (PMUY). Consumers book cylinders at market price. After delivery, the subsidy is transferred directly to their bank accounts. Oil Marketing Companies (OMCs) use Delivery Authentication Codes (DACs) and SMS alerts to track refills and reduce pilferage.
Measures to Prevent Misuse
The government has deactivated more than 4 crore duplicate or inactive connections. About 8.49 lakh PMUY connections and 12,000 inactive accounts were terminated. Regular and surprise inspections at LPG outlets help detect irregularities. Aadhaar seeding has reached 92.44% of active consumers, with 86.78% fully compliant for Aadhaar-based transfers. These steps minimise fraud and ensure subsidy benefits reach the intended beneficiaries.
Impact and Consumer Satisfaction
In FY25, nearly 194 crore LPG refills were delivered with only 0.08% complaints. A third-party evaluation reported over 90% consumer satisfaction with PAHAL. The scheme has improved subsidy targeting and transparency . However, recommendations include strengthening infrastructure, enhancing targeting accuracy, and expanding safety awareness among consumers.
Objectives of PAHAL Scheme
The scheme aims to eliminate fake and duplicate connections and prevent subsidy diversion. It protects consumer entitlements and ensures timely subsidy payments. PAHAL also improves LPG availability for genuine customers. By enabling self-selection in subsidy receipt, it enhances accountability and reduces leakages in subsidy distribution.
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