Pranab Mukherjee said the government is working on Direct Transfer of Subsidy (DTS) payments in the case of kerosene and LPG, in order to address incentive distortions that arise with subsidised pricing.
It is expected that when these products are purchased by making cash payments they will be sold at the market price; and the beneficiaries will also get reimbursement of the subsidy into their accounts at banks and post offices.
In case the products are purchased electronically (through micro ATMs, debit card, Kisan Credit Card, etc.), only the subsidised price may be paid, and the government can reimburse the subsidy to the retailers electronically.
....more info
It is expected that when these products are purchased by making cash payments they will be sold at the market price; and the beneficiaries will also get reimbursement of the subsidy into their accounts at banks and post offices.
In case the products are purchased electronically (through micro ATMs, debit card, Kisan Credit Card, etc.), only the subsidised price may be paid, and the government can reimburse the subsidy to the retailers electronically.
....more info