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  • This report evaluates a pilot project launched in December 2011 in Kotkasim, Alwar, Rajasthan, which tested the direct transfer of kerosene subsidies to the bank accounts of ration cardholders. The project aimed to reduce leakages and black-marketing inherent in the Public Distribution System (PDS). While the scheme successfully reduced kerosene sales and plugged leakages, it also led to a decline in consumption due to higher upfront costs and poor banking access. The evaluation highlights significant challenges regarding beneficiary awareness, banking infrastructure, and the financial losses suffered by Fair Price Shop (FPS) dealers.

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    Themes: energy transitionfossil fuel subsidiesenergy access
    International Institute for Sustainable Development

    Document type: Report

    Regions: Kotkasim
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