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PAHAL Scheme 2025: Key Features, Benefits & Why It’s Important for Competitive Exams

The PAHAL Scheme revolutionizes LPG subsidy distribution by transferring benefits directly to consumers’ bank accounts. With over 33 crore beneficiaries, it’s a model for reducing leakages and ensuring transparency. For competitive exam aspirants, understanding PAHAL is crucial as it frequently appears in questions on governance, welfare schemes, and economic reforms.

What is the PAHAL Scheme?
PAHAL (Pratyaksh Hanstantrit Labh) is the world’s largest cash transfer program for LPG subsidies, launched by the Indian government. It replaces the older indirect subsidy system with direct bank transfers, ensuring:
Consumers pay the market price for LPG cylinders and receive subsidies digitally.
Aadhaar-linked authentication minimizes fraud and duplicate connections.
Over 4 crore inactive/duplicate LPG connections were deactivated to prevent subsidy diversion.

How It Works:
Link Aadhaar & Bank Account: Mandatory for subsidy transfers.
Pay Market Price: Consumers book cylinders at full price.
Subsidy Refund: The subsidy amount is credited to their bank account post-delivery.
Biometric Checks: New PMUY (Ujjwala) connections require Aadhaar authentication.

Why is PAHAL Important for Competitive Exams?
Governance & Transparency: A prime example of Direct Benefit Transfer (DBT) success.
Economic Reforms: Reduces fiscal burden by targeting subsidies efficiently.
Current Affairs: Recent updates (like 2025’s 4 crore deactivations) are frequently asked.
Policy Impact: Aligns with schemes like PM Ujjwala Yojana and Aadhaar integration.

Exam Questions & Answers on PAHAL Scheme
Q1. What is the primary objective of the PAHAL Scheme?
Ans: To eliminate duplicate LPG connections and ensure subsidies reach genuine beneficiaries via direct bank transfers.
Q2. Which authentication method is mandatory for PAHAL subsidies?
Ans: Aadhaar-based biometric authentication.
Q3. How does PAHAL prevent subsidy leakage?
Ans: By deactivating fake/inactive connections and using DAC (Delivery Authentication Codes) for refill tracking.
Q4. PAHAL is linked to which welfare scheme for rural households?
Ans: Pradhan Mantri Ujjwala Yojana (PMUY), providing free LPG connections to BPL families.
Q5. What percentage of Aadhaar seeding has been achieved under PAHAL as of 2025?
Ans: 92.44% of active consumers are Aadhaar-seeded, with 86.78% fully compliant for DBT.

Key Takeaways for Exams:
Largest DBT scheme globally (33+ crore beneficiaries).
Aadhaar integration = Reduced leakages (+4 crore fake connections removed).
2025 Update: 0.08% complaint rate, 90% consumer satisfaction.
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