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Delhi Free LPG Cylinder Scheme: Eligible Members to Receive Cash Instead of Cylinder

Written by: Sachin GuptaUpdated on: 22 Jan 2026, 3:25 pm IST
Under the new scheme, households belonging to the Economically Weaker Section (EWS) will receive cash assistance equivalent to the cost of one LPG cylinder on the occasions of Holi and Diwali each year.
LPG scheme
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The Delhi Cabinet has approved an allocation of ₹300 crore for the rollout of the free LPG cylinder scheme, which has been included among the government’s 100-day priority initiatives. A significant number of ration card holders in Delhi are expected to benefit from this welfare measure.

Free LPG Assistance for Holi and Diwali

Under the new scheme, households belonging to the Economically Weaker Section (EWS) will receive cash assistance equivalent to the cost of one LPG cylinder on the occasions of Holi and Diwali each year. The first instalment of this benefit is expected to be released ahead of Holi this year.

Officials stated that the beneficiaries will be ration card holders identified as poor under the Public Distribution System (PDS), whose details are already available in government databases.

Each eligible family will receive approximately ₹850, corresponding to the prevailing market price of an LPG cylinder.

What are the Eligibility Criteria?

To qualify for the scheme, beneficiaries must meet the following conditions:

  • Must be a resident of Delhi
  • Belong to the Economically Weaker Section (EWS)
  • Hold a valid ration card
  • Be identified as eligible under the Public Distribution System (PDS)
  • Possess an Aadhaar-linked bank account for Direct Benefit Transfer (DBT)

Cash Transfer Instead of Physical Cylinders

The Delhi government has clarified that LPG cylinders will not be distributed physically under the scheme. Instead, the cash equivalent of one LPG cylinder will be transferred directly to beneficiaries’ Aadhaar-linked bank accounts through the Direct Benefit Transfer (DBT) mechanism.

Under this system, beneficiaries will first purchase the LPG cylinder from authorised distributors, after which the government will reimburse the amount directly into their bank accounts. Officials noted that this approach ensures greater transparency and helps prevent misuse, including the illegal resale of subsidised cylinders.

Application Process

As such, there is no separate application process for availing the benefit. Eligible beneficiaries will be automatically identified using the existing ration card database, and the assistance will be credited directly to their bank accounts if they meet the eligibility criteria.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Published on: Jan 22, 2026, 9:53 AM IST

Sachin Gupta

Sachin Gupta is a Content Writer with 6+ years of experience in the stock market, including global markets like the US, Canada, and Australia. At Angel One, Sachin specialises in creating financial content that simplifies complex market trends. Sachin holds a Master's in Commerce, specialising in Economics.

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