DBTL Performance Evaluation: Insights from the world’s largest subsidy benefit transfer scheme

The report assesses the modified DBTL (PAHAL) scheme in India, finding it largely successful in reducing the diversion of subsidized LPG and improving delivery regularity. While consumer enrolment was high and satisfaction generally positive, the study identifies critical gaps in financial inclusion for rural households and a lack of awareness regarding grievance redressal and subsidy transfer status. The authors highlight that while DBTL is a mechanism for disbursement rather than a conventional subsidy reform, it enables future targeted reforms by establishing a common market price.

• The modified DBTL scheme achieved high enrolment rates, with distributors reporting an average of 85 per cent of domestic consumers as enrolled, which aligns with the official enrolment rate of 83 per cent as of March 30, 2015.
• Despite high general awareness of the scheme, there were significant information gaps regarding its specific objectives, the enrolment process, and how to use the grievance redressal mechanism.
• The scheme significantly reduced the diversion of subsidized LPG for unintended purposes, evidenced by a 44.4 per cent growth in non-domestic packed LPG sales between April 2015 and January 2016.
• Subsidy disbursal was largely effective, with nearly 75 per cent of enrolled households receiving subsidies in their bank accounts, though 8.6 per cent of households reported non-receipt of any subsidy, a figure that rose to approximately 13 per cent in rural areas.
• The scheme had a positive impact on the regularity of LPG delivery, with over 52 per cent of surveyed households reporting improved timely delivery of cylinders following implementation.
• Implementation challenges were primarily driven by data entry errors and banking inefficiencies, with 80 per cent of households who found enrolment difficult citing spelling mismatches or wrong entries of account or Aadhaar numbers.
• The success of the DBTL rollout is attributed to strong central government leadership, the use of the Unique Identification (UID) project, and the prior KYC drive conducted by oil marketing companies.
• The report concludes that while DBTL is not a 'subsidy reform' in the conventional sense because it does not change entitlements, it paves the way for such reforms by enabling a common market price and targeted subsidies.

APA

Jain, A., Agrawal, S., & Ganesan, K. (2016). DBTL Performance Evaluation: Insights from the world’s largest subsidy benefit transfer scheme. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/dbtl-performance-evaluation.pdf

Chicago

Jain, Abhishek, Shalu Agrawal, and Karthik Ganesan. DBTL Performance Evaluation: Insights from the world’s largest subsidy benefit transfer scheme. International Institute for Sustainable Development, 2016. https://www.iisd.org/system/files/publications/dbtl-performance-evaluation.pdf.

Wikipedia

{{cite report |last1=Jain |first1=Abhishek |last2=Agrawal |first2=Shalu |last3=Ganesan |first3=Karthik |title=DBTL Performance Evaluation: Insights from the world’s largest subsidy benefit transfer scheme |publisher=International Institute for Sustainable Development |date=April 2016 |url=https://www.iisd.org/system/files/publications/dbtl-performance-evaluation.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{jain2016dbtl, author = {Jain, Abhishek and Agrawal, Shalu and Ganesan, Karthik}, title = {{DBTL Performance Evaluation: Insights from the world’s largest subsidy benefit transfer scheme}}, institution = {International Institute for Sustainable Development}, year = {2016}, month = apr, url = {https://www.iisd.org/system/files/publications/dbtl-performance-evaluation.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }