Central govt. has extended Pradhan Mantri Ujjwala Yojana to provide free LPG gas connections for cooking to all poor households. Now Universal PM Ujjwala Yojana is applicable to all ration card holders in the country w.e.f 17 December 2018. This step is going to further increase LPG penetration to 100% households.
Under PMUY LPG Connection Yojana, govt. provides a subsidy of Rs. 1600 to state-owned fuel retailers for every gas connection to be installed in poor households. This subsidy covers the security fee for the cylinder and also the fitting charges.
Cabinet Committee on Economic Affairs (CCEA) has approved expansion of PMUY Scheme to cover poor families who does not have LPG connections. All those people who are not covered under the existing beneficiary categories would be included.
PM Ujjwala Yojana – PMUY Scheme Expansion for All Ration Card Holders
In order to expand the scope of the flagship PM Ujjwala Yojana (LPG-for-cooking scheme), the govt. has decided to extend it to all ration-card holding households. As per the reports, all those people who possess ration card and aadhaar card and identify themselves as poor through self declaration would be included. Till date, there are 9.27 crore ration card holder families across the country, so this scheme will benefit over 1 crore households.
PM Ujjwala Yojana was launched in FY 2016 to provide LPG gas connections to women members of below poverty line (BPL) families. This scheme was aimed at providing clean cooking fuel to 5 crore women members of households over a duration of 3 years. For this purpose, a sum of Rs. 8000 crore was allotted and the sole criteria for PMUY beneficiaries selection was BPL list under Socio Economic Caste Census (SECC) 2011 data.
After the success of the PM Ujjwala Scheme, govt. allocates an additional Rs. 4800 crore in union Budget 2018-19. This was done with an increased target of covering 8 crore households till the FY 2020. To include more number of beneficiaries, govt. had opened PMUY scheme to cover all scheduled caste (SC) and scheduled tribe (ST) households, PMAY and Antyodaya Anna Yojana beneficiaries, forest dwellers, most backward classes, tea garden and ex-tea garden tribes and people residing in islands or river islands.
— Petroleum Ministry (@PetroleumMin) December 17, 2018
Till date, govt. has already released 5.8 crore LPG gas connections out of which 3.8 crore are SECC beneficiaries and 2 crore are from seven categories mentioned above. Now as the number of new applicants have tapered down, the central govt. has decided to open up the scheme and make it universal covering all poor households.
Thank the #CCEA chaired by Hon. PM Shri @narendramodi ji for approving to expand the scope of #PMUY to cover poor families not having LPG connections & not covered under the existing beneficiary categories. The step will further increase the penetration of LPG to 100% households. pic.twitter.com/wJwvWP5b9w
— Dharmendra Pradhan (@dpradhanbjp) December 17, 2018
As per the reports, national average for LPG cylinder refills by PMUY beneficiaries is 3.5 p.a and the overall average for LPG refill is 7. Around 80% of beneficiaries have come back for at-least 1 refill. The dropout rate i.e the number of households that have never got LPG cylinders obtained under PMUY refilled is around 20%. Moreover, the LPG coverage has reached to around 90% households with most LPG adoption in southern states while less adoption in forested areas.
Gujarat, Bihar and Uttarakhand states are among the top with more than 4 cylinder refills in a single year while Madhya Pradesh and Chhattisgarh have less than 3 refills in a year. Under PMUY, govt. bears burden of Rs. 1600 per connection and an equal amount is borne by the PMUY beneficiaries. Each beneficiary has to buy their own cooking stove. To reduce the burden, PMUY scheme allows beneficiaries to pay for the stove and the first refill in monthly installments. However, the cost of all subsequent refills has to be borne by the beneficiary household.