After witnessing savings of thousands of crores by adopting the process of direct benefit transfer (DBT) to consumers in reimbursing the susidised amount on foodgrains and LPG this scheme would be implemented for fertilizers too. This was announced some time back. Now, from Sunday, the scheme will take off in some states.The states to be covered now are Manipur, Mizoram, Nagaland, Daman and Diu, Dadra and Nagar Haveli, Puducherry and Goa. In states of Rajasthan, Haryana, Gujarat, Punjab, Andhra Pradesh and Himachal Pradesh this will be covered from November 1.
Unlike other DBTs such as cash transfer for foodgrains or subsidised gas connection where the subsidy amount is directly transferred to beneficiary accounts, in this case the subsidy will go to the manufacturer or marketing firm. It is expected that some six thousand crores will be saved annually.
