Central government is going to expand the flagship Pradhan Mantri Ujjwala Yojana (PMUY Scheme) with focus on delivery and use of smaller 5 Kg LPG gas cylinders. The average of LPG gas cylinder refill under PM Ujjwala scheme is less than the national average of refills of gas cylinders as prices of refills are not subsidized. So, the Indian govt. (Modi 2.0) is planning to encourage the use of smaller cylinders to enable more people to do LPG gas refill.
Poor people particularly women in rural areas who get LPG gas cylinders under PM Ujjwala Yojana are enable to perform refills as the prices of LPG gas cylinders are very high. A study shows that the high cost of refills for a 14.2 kg cylinder is one of the main reasons why lower number of LPG cylinders are being used by BPL families.
In order to tackle this problem of lower refill count of LPG cylinders, govt. will now focus on increase in year round use of gas connections given under PMUY scheme.
5 Kg LPG Gas Cylinder Refill to Power PMUY Scheme
Under PM Ujjwala Yojana, below poverty line (BPL) families gets LPG gas connections with support of Rs. 1600 for each connection. The LPG gas connection is provided in the name of female member of the family. The target to provide 8 crore gas connections to rural women would be completed in the first 100 days of newly formed government (Modi 2.0). Till date, around 7.19 crore connections have already been provided. After the achievement of this target, use of smaller 5 kg cylinders would be made mandatory under the PMUY scheme so that it is available across the country and help support cooking gas refills.
The average LPG cylinder refill under PM Ujjwala Yojana is a pathetic & currently stands at 3 refills per annum. The national average for LPG gas cylinder refills stands close to 7 refills per annum. Price of cylinders is a major factor as refills are not 100% subsidised. So, the increased usage of smaller cylinders can change the complete scenario.
In Delhi, a customer has to pay Rs. 712 to purchase 14.2-kg cylinder (within per household limit of 12 refills). For this purchase, the subsidy amount paid in the female subscriber’s bank account under Direct Benefit Transfer (DBT) scheme is around Rs 215. However in case of 5 Kg LPG gas cylinder, the current cost of refill is Rs. 260 and the subsidy that would be credited to the bank account of female subscriber is Rs 80. The high cost of refill for 14.2 Kg cylinder is a major reason for lower number of usage of LPG cylinders by BPL families.
With 5 kg cylinders under PMUY scheme, refills could be done at one-third the price of a regular cylinder. This would enable BPL families to raise their year-round use of gas connections given under PM Ujjwala Yojana. In addition, portability of smaller cylinders would allow wider popularity of this cleaner medium for cooking purposes.
As per the report from sources, the scope of this major vote gainer scheme would be extended. Central govt. is planning to provide further relaxation in the terms of PMUY scheme to increase its reach at the grassroot level. PMUY LPG gas cylinder scheme was rolled out from Uttar Pradesh in FY 2016. The govt. has kept the initial target of gas connections quite low. But as the PMUY scheme grows popular and its penetration increased, the govt. increases its scope.