New Delhi: In a move to maintain transparency in giving subsidy on LPG cylinders, kerosene and fertilizers, the ‘e-payment system’ for the direct credit of the subsidy to the bank account of the consumers was inaugurated by Union Finance Minister Pranab Mukherjee.

Considered as a biggest move under the e-governance project started by the Centre, the e-payment for direct credit of dues from the Union government into the account of beneficiaries through the 'Government e-Payment Gateway' (GePG) has been developed by the Department of Expenditure.

Under this, the consumers will have to pay the total cost of LPG cylinders and Kerosene but the monthly subsidy will be directly transferred to their respective bank accounts. The service will begin by 2012.

In the wake of large scale diversion of subsidies, the government had announced it would move towards direct transfer of cash subsidy for kerosene, LPG and fertilisers. “The e-payment system will not only save time and energy but also facilitate elimination of cheque and their manual processing,” said Pranab.

JPN/Bureau