Ranchi, The Jharkhand government on Wednesday announced a subsidy of Rs 25 per litre on petrol and diesel prices for people living below the poverty line in the state.

The decision was taken on the occasion of a programme organised to mark two years of the Hemant Soren-led coalition government in the state.

The benefits would be extended on the purchase of petrol or diesel up to 10 litres every month.

The exempted amount will be received by the beneficiary through the direct benefit transfer system to his/her bank account. The scheme will be effective from Republic Day (January 26) next year.

The government said a minimum parameter of 10 litres has been set so that the scheme is not "misused".

The scheme has been designed mainly to benefit two-wheeler riders and farmers who operate pumps for agricultural purpose.