International Research Journal of Management Science & Technology ISSN 2250 – 1959(0nline) 2348 – 9367 (Print) An Internationally Indexed Peer Reviewed & Refereed Journal

Shri Param Hans Education & Research Foundation Trust

www.IRJMST.com www.SPHERT.org

Published by iSaRa Solutions

IRJMST Vol 8 Issue 1 [Year 2017] ISSN 2250 – 1959 (0nline) 2348 – 9367 (Print)

A STUDY ON THE IMPACT OF THE PAHAL DIRECT BENEFIT TRANSFER FOR LIQUIFIED PETROLEUM GAS (DBTL) SCHEME OF HOUSEHOLD CYLINDERS IN MS. C. PANDI SASI KALA Asst Prof of commerce [email protected]

Dr. A. JASMINE Associate Prof of Commerce TBAK College for Women [email protected]

Abstract India counts as the third-largest economy in the world in terms of purchasing power and is expected to grow to 60 per cent of the size of the United States economy by 2034. This puts disquieting pressure not only on the economic infrastructure of the nation, but also raises the issue of environmental sustainability. The rapid economic progress witnessed that the total energy demand in India has increased substantially over the past decade. While this progress has contributed to economic development in the country on one hand and on the other hand a large segment of the population still lacks access to modern and clean sources of energy. Further, since almost 80 per cent of the crude oil consumed in India is imported, the domestic economy is susceptible to the vagaries of international prices. In an effort to improve energy access, shield domestic consumers from international price volatility and support energy-intensive industries (such as public transport and freight), the government has historically subsidized the four major petroleum products (petrol, diesel, kerosene and liquefied petroleum gas [LPG]). Key word- Subsidy, Consumers, Energy,

INTRODUCTION

Energy is directly related to the most pressing social issues that affect sustainable development. Energy impinges on poverty, jobs and income, access to social services, gender disparities, population, agricultural production and food security, health, land degradation, climate change, environmental quality, economical and security issues. A large proportion of humanity does not enjoy the benefits of modern energy sources and devices. About two billion people still cook

International Research Journal of Management Science & Technology http://www.irjmst.com Page 215 IRJMST Vol 8 Issue 1 [Year 2017] ISSN 2250 – 1959 (0nline) 2348 – 9367 (Print) using traditional fuels and one and half to two billion people are without access to electricity. Lack of access to reliable and affordable modern energy is holding back economic and social development in many parts of the world today.

STATEMENT OF THE PROBLEM The study draws on relevant existing literature and insights from experience of the consumers in implementation of cash transfers for petroleum products. The report focuses specifically on Liquified Petroleum Gas used by households (termed as “domestic Liquified Petroleum Gas”) for which cash transfers are being considered most strongly as an option for subsidy delivery. OBJECTIVES OF THE STUDY

1. To study the origin and growth of Pahal Direct Benefit Transfer for Liquified Petroleum Gas (DBTL) Scheme of household cylinders. 2. To find out the level of consumer awareness and their perception towards the Pahal Direct Benefit Transfer for Liquified Petroleum Gas Scheme of household cylinders in Ramanathapuram. 3. To analyse the problems faced by the consumers to avail the benefit of Pahal Direct Benefit Transfer for Liquified Petroleum Gas Scheme for household cylinders in Ramanathapuram. 4. To identify the consumption pattern of Liquified Petroleum Gas before and after the introduction of Pahal Direct Benefit Transfer for Liquified Petroleum Gas Scheme of household cylinders in Ramanathapuram.

SCOPE OF THE STUDY The study focus on how effectively the Pahal – Direct Benefit Transfer for Liquified Petroleum Gas scheme has been implemented in order to make proper usage of Liquified Petroleum Gas subsidy cylinders and to conserve the cooking energy. The findings may help to measure whether the Pahal – Direct Benefit Transfer for Liquified Petroleum Gas scheme serves the purpose of implementation. Sampling Design Sampling design is a plan for drawing a sample from a population. It is also the framework which describes the characteristics of the sample.

 Sampling Unit: Respondents are consumers of Liquified Petroleum Gas cylinders for cooking purpose in their households.  Sampling Techniques: A sampling technique used in this project is simple random sampling in which each and every item of the population is given an equal chance of being included in the sample.  Sample Size: Sample size taken for this study is 100 consumers of Liquified Petroleum Gas cylinders for cooking purpose in households at Ramanathapuram.

AREA OF THE STUDY The researcher has selected for the purpose of the study. This district has eleven revenue blocks. Among these, two blocks namely, Ramanathapuram block and

International Research Journal of Management Science & Technology http://www.irjmst.com Page 216 IRJMST Vol 8 Issue 1 [Year 2017] ISSN 2250 – 1959 (0nline) 2348 – 9367 (Print)

Tiruppullani block has been selected and data has been collected in this area as the representation of the whole district

LIMITATIONS OF THE STUDY

 Analysis is made with regard to only two blocks ofRamanathapuram District. Therefore, the result of the study cannot be generalised at all places.  The respondents were not ready to furnish all the data that is required for the study.  The attitude of the consumers changes from time to time. Hence, the result of the project may not be applicable in the long run.

TABLE 1 REASONS FOR JOINING THE SCHEME AND THE LEVEL OF ATTITUDE TOWARDS PAHAL DBTL SCHEME

Reasons for joining the scheme(X) Mandatory Good Scheme

88 12 Positive Attitude Negative Attitude Level of Attitude towards PAHAL DBTL scheme (Y) 77 23 Source: Primary Data CORRELATION BETWEEN REASONS FOR JOINING THE SCHEME AND THE LEVEL OF ATTITUDE TOWARDS PAHAL DBTL SCHEME Reasons for joining the Level of Attitude towards PAHAL Particulars scheme DBTL scheme Reasons for joining the ---- 0.091 scheme Level of Attitude towards 0.091 ---- PAHAL DBTL scheme

Inference: The value obtained for correlation is 0.091. Hence it is concluded that there is positive correlation between the reasons for joining the scheme and the level of attitude towards PAHAL DBTL Scheme. KARL PEARSON’S CO-EFFICIENT OF CORRELATION BETWEEN GENDER OFTHE RESPONDENTS AND THE LEVEL OF ATTITUDE TOWARDS PAHALDBTL SCHEME To know the impact of PAHAL DBTL scheme, the relationship between the personal factors and the attitude towards PAHAL DBTL scheme of the respondents is essential. Hence the relationship between the gender of the respondents and the level of attitude towards PAHAL DBTL scheme is studied with the help of table TABLE 2 GENDER OF THE RESPONDENTS AND THE LEVEL OF ATTITUDE TOWARDS PAHAL DBTL SCHEME

International Research Journal of Management Science & Technology http://www.irjmst.com Page 217 IRJMST Vol 8 Issue 1 [Year 2017] ISSN 2250 – 1959 (0nline) 2348 – 9367 (Print)

Male Female Gender of the Respondents (X) 42 58 Positive Attitude Negative Attitude Level of Attitude towards PAHAL DBTL scheme (Y) 77 23 Source: Primary Data CORRELATION BETWEEN GENDER OF THE RESPONDENTS AND THE LEVEL OF ATTITUDE TOWARDS PAHAL DBTL SCHEME Level of Attitude towards Particulars Gender of the Respondents PAHAL DBTL scheme

Gender of the Respondents ---- - 0.016

Level of Attitude towards -0.016 ---- PAHAL DBTL scheme

Inference: The value obtained for correlation is -0.016. Hence it is concluded that there is negative correlation between the gender of the respondents and the level of attitude towards PAHAL DBTL Scheme. KARL PEARSON’S CO-EFFICIENT OF CORRELATION BETWEENEDUCATIONAL QUALIFICATION OF THE RESPONDENTS AND THE LEVELOF ATTITUDE TOWARDS PAHAL DBTL SCHEME To know the impact of PAHAL DBTL scheme, the relationship between the personal factors and the attitude towards PAHAL DBTL scheme of the respondents is essential. Hence the relationship between the educational qualification of the respondents and the level of attitude towards PAHAL DBTL scheme is studied with the help of table

TABLE 3 EDUCATIONAL QUALIFICATION OF THE RESPONDENTS AND THE LEVEL OF ATTITUDE TOWARDS PAHAL DBTL SCHEME School Under Post Educational Qualification of the Illiterate Others Respondents(X) Level Graduate Graduate 15 53 11 15 6 Level of Attitude towards Positive Attitude Negative Attitude PAHAL DBTL scheme (Y) 77 23 Source: Primary Data CORRELATION BETWEEN EDUCATIONAL QUALIFICATION OF THE RESPONDENTS AND THE LEVEL OF ATTITUDE TOWARDS PAHAL DBTL SCHEME

International Research Journal of Management Science & Technology http://www.irjmst.com Page 218 IRJMST Vol 8 Issue 1 [Year 2017] ISSN 2250 – 1959 (0nline) 2348 – 9367 (Print)

Educational Qualification of Level of Attitude towards Particulars the Respondents PAHAL DBTL scheme Educational Qualification ---- -.089 of the Respondents Level of Attitude towards -.089 ---- PAHAL DBTL scheme

Inference: The value obtained for correlation is -0.089. Hence it is concluded that there is negative correlation between the educational qualification of the respondents and the level of attitude towards PAHAL DBTL Scheme. TABLE4 Educational Qualification of the Respondents * Level of Perception towards the aspect of PAHAL DBTL Scheme

Level of Perception towards the aspect of Educational Qualification of PAHAL DBTL Scheme Total the Respondents Low Medium High Illiterate 3 12 0 15 School level 3 42 8 53 Graduate 4 7 0 11 Post Graduate 3 12 0 15 Others 0 3 3 6 Total 13 76 11 100 Source: Primary Data

Particulars Value Df Asymp.sig. (2 sided) Pearson Chi-Square 23.231a 8 .003 Likelihood Ratio 23.534 8 .003 a. 9 cells (60.0%) have expected count less than 5. The minimum expected count is .66.

The Chi-square value obtained is 23.231 and the likelihood ratio is 23.534 @ 5 percent significance level. Inference: The Chi-square value is lesser than the likelihood value and so the null hypothesis is accepted. Hence it is concluded that there is no significant relationship between educational qualification of the respondents and the level of perception towards the aspect of PAHAL DBTL scheme.

TABLE 5 Age of the Respondents * Level of opinion towards the benefits of PAHAL DBTL Scheme Level of opinion towards the benefits of Age of the Respondents Total PAHAL DBTL Scheme

International Research Journal of Management Science & Technology http://www.irjmst.com Page 219 IRJMST Vol 8 Issue 1 [Year 2017] ISSN 2250 – 1959 (0nline) 2348 – 9367 (Print)

Low Medium High 21 yrs to 30yrs 5 9 5 19 31 yrs to 40yrs 4 34 3 41

41 yrs to 50 yrs 7 18 3 28

Above 50 yrs 0 9 3 12

Total 16 70 14 100 Source: Primary Data Particulars Value Df Asymp.sig. (2 sided) Pearson Chi-Square 12.762a 6 0.047 Likelihood Ratio 14.228 6 0.027 a. 6 cells (50.0%) have expected count less than 5. The minimum expected count is 1.68

The Chi-square value obtained is 12.762 and the likelihood ratio is 14.228 @ 5 percent significance level.

Inference: The Chi-square value is lesser than the likelihood value and so the null hypothesis is accepted. Hence it is concluded that there is no significant relationship between age of the respondents and the level of opinion towards the problems of PAHAL DBTL scheme.

TABLE 6 Gender of the Respondents * Level of opinion towards the benefits of PAHAL DBTL Scheme

Level of opinion towards the benefits of Gender of the Respondents PAHAL DBTL Scheme Total Low Medium High

Male 8 22 12 42

Female 8 48 2 58

Total 16 70 14 100 Source: Primary Data Particulars Value Df Asymp.sig. (2 sided) Pearson Chi-Square 14.614a 2 0.001 Likelihood Ratio 15.246 2 0.000 a. 0 cells (0.0%) have expected count less than 5. The minimum expected count is 5.88.

International Research Journal of Management Science & Technology http://www.irjmst.com Page 220 IRJMST Vol 8 Issue 1 [Year 2017] ISSN 2250 – 1959 (0nline) 2348 – 9367 (Print)

The Chi-square value obtained is 14.614 and the likelihood ratio is 15.246 @ 5 percent significance level. Inference: The Chi-square value is lesser than the likelihood value and so the null hypothesis is accepted. Hence it is concluded that there is no significant relationship between gender of the respondents and the level of opinion towards the benefits of PAHAL DBTL scheme.

LEVEL OF OPINION TOWARDS THE BENEFITS OF PAHAL DBTL SCHEME AND EDUCATIONAL QUALIFICATION OF THE RESPONDENTS To determine whether there is relationship between educational qualification of the respondents and the level of opinion towards the benefits of PAHAL DBTL scheme, the following null hypothesis has been framed. Null Hypothesis: There is no significant relationship between educational qualification of the respondents and the level of opinion towards the benefits of PAHAL DBTL scheme.

TABLE 7 Educational Qualification of the Respondents * Level of opinion towards the benefits of PAHAL DBTL Scheme Level of opinion towards the benefits of Educational Qualification of PAHAL DBTL Scheme Total the Respondents Low Medium High Illiterate 3 9 3 15 School level 4 46 3 53 Graduate 8 0 3 11 Post Graduate 1 9 5 15 Others 0 6 0 6 Total 16 70 14 100 Source: Primary Data Particulars Value Df Asymp.sig. (2 sided) Pearson Chi-Square 46.700a 8 0.000 Likelihood Ratio 45.698 8 0.000 a. 9 cells (60.0%) have expected count less than 5. The minimum expected count is .84.

The Chi-square value obtained is 46.700 and the likelihood ratio is 45.698 @ 5 percent significance level. Inference: The Chi-square value is greater than the likelihood value and so the null hypothesis is rejected. Hence it is concluded that there is significant relationship between educational qualification of the respondents and the level of opinion towards the benefits of PAHAL DBTL scheme.

International Research Journal of Management Science & Technology http://www.irjmst.com Page 221 IRJMST Vol 8 Issue 1 [Year 2017] ISSN 2250 – 1959 (0nline) 2348 – 9367 (Print)

CHI-SQUARE TESTON QUALIFICATION OF THE RESPONDENTS AND PROBLEMS FACED AFTER JOINING PAHAL DBTL SCHEME To check whether there is relationship between educational qualification of the respondents and the problems faced by the respondents after joining PAHAL DBTL Scheme, the following null hypothesis has been framed. Null Hypothesis: There is no significant relationship between educational qualification of the respondents and the problems faced by the respondents after joining PAHAL DBTL scheme.

TABLE 8 Qualification of the Respondents * Problems faced after joining PAHAL DBTL Scheme Problems faced by Respondents after joining PAHAL DBTL Scheme Educational Getting Qualification of the Booking Getting Total Subsidy Respondents cylinder cylinder at None through through SMS market price banks Illiterate 6 3 3 3 15 School level 17 4 32 0 53 Graduate 4 0 0 7 11 Post Graduate 9 3 3 0 15 Others 3 3 0 0 6 Total 39 13 38 10 100 Source: Primary Data

Particulars Value Df Asymp.sig. (2 sided) Pearson Chi-Square 69.196a 12 0.000 Likelihood Ratio 63.243 12 0.000 a. 12 cells (60.0%) have expected count less than 5. The minimum expected count is .60

The Chi-square value obtained is 69.196 and the likelihood ratio is 63.243 @ 5 percent significance level. Inference: The Chi-square value is greater than the likelihood value and so the null hypothesis is rejected. Hence it is concluded that there is significant relationship between educational qualification of the respondents and the problems faced by respondents after joining PAHAL DBTL scheme.

CONSUMPTION PATTERN OF LPG CYLINDERS FREQUENCY PERCENTAGE

International Research Journal of Management Science & Technology http://www.irjmst.com Page 222 IRJMST Vol 8 Issue 1 [Year 2017] ISSN 2250 – 1959 (0nline) 2348 – 9367 (Print)

Increase in Consumption of LPG Cylinders 5 5 No Change in Consumption of LPG Cylinders 40 40 Decrease in Consumption of LPG Cylinders 55 55 Total 100 100 TABLE 9 CONSUMPTION PATTERN OF LPG CYLINDERS AFTER INTRODUCTION OF PAHALDBTL SCHEME Source: Primary Data SIGN TEST Signs Frequency Values Negative 5 Zero 40 1.11 Positive 55

The table value Z0.05= 1.64 @ 5% significance level

The calculated Z value is 1.11 and the table value is 1.64 @ 5 percent significance level. Inference: The calculated value is lesser than the table value and so the null hypothesis is accepted. Hence it is concluded that there is no significant change in the consumption pattern of Liquified Petroleum Gas among respondents after introduction of PAHAL DBTL Scheme.

MAJOR FINDINGS OF THE STUDY  It is found out that majority of 56 percent of the respondents faced problems while receiving subsidy through bank for PAHAL DBTL scheme.

 It is inferred that the banks are not able to solve the problem in receiving subsidy within a short period.

 It is clearly found out that, majority of 83 percent of the respondents have decreased their consumption pattern of Liquified Petroleum Gas cylinders after introduction of PAHAL DBTL scheme.

 Majority of 84 percent of the respondents’ shows the attitude of satisfaction towards the number of cylinders allotted at subsidised price.

 It is identified that 87 percent of the respondents shows an opinion that family size should be considered as the basic factor in determining the fixed number of cylinders for all customers.

 It is observed that 76 percent of the respondent’s shows unfavourable opinion towards fixing same standard number of cylinders at subsidized rate for all customers.

International Research Journal of Management Science & Technology http://www.irjmst.com Page 223 IRJMST Vol 8 Issue 1 [Year 2017] ISSN 2250 – 1959 (0nline) 2348 – 9367 (Print)

 It is identified by applying Karl Pearson co-efficient of correlation at 5 percent level of significance that there is positive correlation between the age of the respondents and the level of attitude towards PAHAL DBTL Scheme.  It is concluded by applying weighted average method that majority of the respondents have given first rank to the aspect that it saves the consumption pattern of Liquified Petroleum Gas cylinder, second rank to the aspect that it avoids misuse of cylinders, third rank to the aspect that it weed out duplicate connection of LPG cylinders, fourth rank to the aspect that it improves the public service of gas companies and fifth rank to the aspect on payment of subsidy through banks.

SUGGESTIONS

The following were the various suggestions offered by the researcher after studying the impact of PAHAL DBTL scheme for household liquefied petroleum gas cylinders in Ramanathapuram district to channelize the scheme after taking into consideration of the customers real difficulties and reasonable queries and to make the consumption pattern of LPG cylinders by the customers in more effectively and efficiently possible ways.

 The impact on PAHAL DBTL scheme among the respondents towards the payment of the subsidy directly into a bank account is a time consuming as well as tiresome process and sometimes lasting a day. Therefore the challenges in confirming eligibility and receiving the subsidy amount in a bank account by multiple visits to the bank to confirm and withdraw the subsidy payment, thereby foregoing household tasks and income- generating activities, and potentially resulting in additional out-of-pocket expenditure should be reduced and simplified.

 The negative attitude towards the PAHAL DBTL scheme such as it was poorly implemented, led to higher prices, and was overly complicated should be solved and rectified by reducing the complicated procedures for receiving subsidy.

 The majority of respondent’s have medium (moderate) level of opinion towards the various aspects, benefits and the problems of PAHAL DBTL scheme. This attitude of the respondents’ should be changed by creating awareness on the importance of energy conservation and the need for implementation of PAHAL DBTL scheme.

 Restriction on the number of subsidy cylinder for each and every respondent should be fixed based on the family size of the respondent irrespective of fixing standard number of subsidy cylinder for all.

 The study reveals that there is no significant change in the consumption pattern of household cylinder after introduction of PAHAL DBTL scheme. This attitude indirectly reveals that the restriction on the number of subsidy cylinder cap should be minimized further from 12 to 9 per annum for family which have less than four members, 10 number of subsidy cylinder per annum for family which have four members, 11number of subsidy cylinder per annum for

International Research Journal of Management Science & Technology http://www.irjmst.com Page 224 IRJMST Vol 8 Issue 1 [Year 2017] ISSN 2250 – 1959 (0nline) 2348 – 9367 (Print)

family which have five members and 12number of subsidy cylinder per annum for family which have more than five members.

 Subsidy is primarily meant for weaker section of the society. Hence the Government should make it mandatory that, no subsidy cylinder will be issued for the people whose family income per annum is more than five lakhs to avoid the misuse of subsidy by the stronger section of the society.

CONCLUSION A few hundred years from now, human beings won’t burn coal, oil, natural gas and anymore. The reason behind that is the amount of fossil fuel in the earth is finite and so people eventually won’t be able to burn it anymore. They do need alternative fuels because the world is running out of oil, it will happen in a decade or two and they need to invest in green technologies and distance themselves from coal. Rising incomes and aspirations certainly point to a future where India is likely to consume a significantly larger share of the global LPG supply.

REFERENCES BOOKS

 “Fundamentals of Applied Statistics”, S. C. Gupta & V. K. Kapoor, Sultan Chand & Company Ltd., New Delhi, 2008.  Research Methodology, C.R. Kothari, New Age International PVT Ltd., Publishers, 2009.  “Statistical Methods”, S. P. Gupta, Sultan Chand & Sons Educational Publishers, New Delhi, 2011.  “Fundamental & Statistics”, S. C. Gupta, Himalaya Publishinf House, Mumbai, 2016.

JOURNALS& REPORTS

 Handbook on ‘PAHAL’ (DBTL) Scheme (Version 2.0), Ministry of Petroleum and Natural Gas, Government of India  Census India, Census of India Report, Ministry of Home Affairs, Government of India, 2011.  Government of India (2013, October). Report of the Expert Group to Advice on Pricing Methodology of Diesel, Domestic LPG and PDS Kerosene. New Delhi: Government of India  Petroleum Planning & Analysis Cell. (2013a). Consumption of petroleum products: Year (Period) April 2001–March 2013. New Delhi: Ministry of Petroleum and Natural Gas, Government of India.  Planning Commission. (2013). Status of Direct Benefits Transfer roll out in 28 identified schemes and 121 districts under Phase I & II from 1.1.2013 to 14.10.2013. New Delhi: Government of India.  A Citizen Guide to Energy Subsidies in India, March 2012, published by International Institute for Sustainable Development.  Subsidies to Liquefied Petroleum Gas in India: An assessment of the direct benefit transfer in Mysore, published by International Institute for Sustainable Development, May 2014.

International Research Journal of Management Science & Technology http://www.irjmst.com Page 225

..

Shri Param Hans Education & Research Foundation Trust www.SPHERT.org

भारतीय भाषा, शिऺा, साहह配य एवं िोध ISSN 2321 – 9726 WWW.BHARTIYASHODH.COM

INTERNATIONAL RESEARCH JOURNAL OF MANAGEMENT SCIENCE & TECHNOLOGY ISSN – 2250 – 1959 (0) 2348 – 9367 (P) WWW.IRJMST.COM

INTERNATIONAL RESEARCH JOURNAL OF COMMERCE, ARTS AND SCIENCE ISSN 2319 – 9202 WWW.CASIRJ.COM

INTERNATIONAL RESEARCH JOURNAL OF MANAGEMENT SOCIOLOGY & HUMANITIES ISSN 2277 – 9809 (0) 2348 - 9359 (P) WWW.IRJMSH.COM

INTERNATIONAL RESEARCH JOURNAL OF SCIENCE ENGINEERING AND TECHNOLOGY ISSN 2454-3195 (online) WWW.RJSET.COM

INTEGRATED RESEARCH JOURNAL OF MANAGEMENT, SCIENCE AND INNOVATION ISSN 2582-5445 WWW.IRJMSI.COM