Jharkhand Two Wheeler Petrol Cashback Scheme 2024 Progress Report - Rs. 25/L Fuel Subsidy Data

Good news for citizens ! Jharkhand government is inviting online applications for Two Wheeler Petrol Cashback Scheme 2024. This 2 wheeler petrol subsidy scheme was initially launched on 26 January 2022. Former CM Hemant Soren led JH govt. started this scheme in which govt. offers Rs. 25 per litre relief in fuel price in the form of cash-back for 2 wheelers of the poor. It is a first such decision taken by a state to tackle rising fuel prices and benefit below poverty line (BPL) families.  

Jharkhand Petrol Subsidy Scheme 2024 Progress Report

New data has been revealed for Jharkhand government's scheme to provide consumers with a subsidy of ₹25/L on petrol, up to 19 litres per month through direct benefit transfer (DBT). The progress report shows that Jharkhand petrol subsidy scheme has failed to attract its beneficiaries as not even 10% of the eligible people have availed the scheme until January 2024.

"Since January 26, 2022, when the scheme was launched, until 31 January 2024, as many as 229,032 people applied for the benefit. Out of the total applications, 179,343 applications were approved, and payment for 178,975 was initiated. Out of the total beneficiaries, 61,473 received benefits between April 1 and 31 January, 2024," an official in the food and civil supply department said.

What New Data on Jharkhand Govt on Fuel Subsidy Scheme Shows

State's finance minister while admitting the scheme's failure says, "You can lead a horse to water, but you can't make him drink." When asked about the reasons behind the failure, he mentioned misconceptions and a lack of vehicle ownership and driving licences.

"To benefit from the scheme, one should have a ration card with the Aadhar number of each member mentioned in the card, an Aadhar-linked bank account, vehicle registration papers, and a driving license in the name of the applicant. A misconception spread that those who would take subsidized petrol would not receive subsidised food grain, as vehicle owners are not supposed to get subsidised food grain. It was observed that many did not have vehicles registered in their names, and many did not have driving licenses," state food civil minister said.

"I personally told many to take advantage, but some said they had purchased a second-hand vehicle and did not have vehicle papers in their names, and many said they do not have a driving license, and obtaining one is difficult in the state. The issuance of a driving license is a time-consuming process. I also told transport department officials to launch a drive for the issuance of driving licenses, but it has not been materialised so far," the minister added.

A food and civil supply department official added, "As many as two million people are expected to benefit from the scheme for which the government has provided ₹50 crore per month. This has not been achieved so far."

What is Jharkhand Two Wheeler Petrol Cashback Scheme

In Jharkhand Two Wheeler Petrol Cashback Scheme, govt. will subsidise Rs 25 per litre of petrol for ration-card holders with two-wheelers. The Rs. 25/L fuel price relief offer will come with a likely cap of 10 litres per family per month. In Jharkhand, petrol currently costs Rs. 97.61 per litre and diesel Rs. 92.56 per litre.

Former CM Announcement for Rs. 25/L Fuel Price Relief Offer

On 29 December 2021, while announcing a slew of schemes to mark two years of the JMM-led coalition government, Former Chief Minister announced Rs. 25/L fuel price relief offer. Former CM said: "We know that the prices of petrol and diesel are skyrocketing, affecting the poor. There are motorcycles in houses of the poor, but people can't ride them because they don't have money for petrol. The person is not able to go to the market to sell his crop. We hear that people are mixing kerosene and petrol to ride motorcycles. We will reduce the price by Rs. 25 per litre of petrol."

Conditions for Petrol Subsidy for 2 Wheeler in Jharkhand

Those citizens who have ration cards will get the petrol subsidy with a cap of 10 litres per family for two-wheelers. The state government "may transfer the money directly into accounts". Jharkhand is the first state to adopt such an innovative measure to provide relief to a select group of people belonging to the middle-class and lower middle-class which spends on petrol for running two-wheelers. 

Objective of Two Wheelers Petrol Cash Back Scheme

As many as 23 states reduce the Value Added Tax on fuels to reduce petrol and diesel prices. Amongst states, the highest drop was in Karnataka (Rs. 13.35 per litre of petrol), followed by over Rs. 12 per litre of petrol in Mizoram and Puducherry. Moreover, while all states chose to forego revenues, Jharkhand has instead decided to provide subsidies and incur higher expenditure. The state government does not want to reduce VAT on petrol for everyone and will opt for "objective subsidy benefiting the poor".

Implementation of 2 Wheeler Petrol Cash-back Yojana

There are 61 lakh families that have ration cards in Jharkhand. Out of that, many would have motorcycles. It could be 2 lakh, 10 lakh or 20 lakh, and that needs to be checked and corroborated. One way to give the subsidy would be with Aadhaar based identification at petrol pumps, and provide the subsidy there itself. 

In Jharkhand, govt. will now offer Rs. 25/L fuel price relief to benefit poor families.

Jharkhand Petrol Subsidy Yojana Apply Online link - https://aahar.jharkhand.gov.in/. One can also apply through CM-Supports App.