PM UJJWALA YOJANA (Syllabus: GS Paper 2 – Govt Scheme)

Context: The Union Cabinet recently decided to extend the subsidy of ₹300 per LPG cylinder for up to 12 refills per year until the end of the next financial year.

PM Ujjwala Yojana

• Launched: May 2016.
• Ministry: Ministry of Petroleum and Natural Gas.
• Objective: To make clean cooking fuel such as LPG available to the rural and deprived households that were otherwise using traditional cooking fuels such as firewood, coal, cow-dung cakes, etc.
• Target: LPG connections to 5 crore women members of BPL households.
• Expansion: The scheme was expanded in April 2018.
• Beneficiaries: Women beneficiaries from 7 more categories- SC/ST, PMAY, AAY, Most backward classes, tea garden, forest dwellers, and Islands.
• Expansion of Beneficiaries: About 10.27 crore beneficiaries are set to benefit from the continuation of the Pradhan Mantri Ujjwala Yojana (PMUY).
• Subsidy Structure: Initially, a targeted subsidy of ₹200 per cylinder for up to 12 refills annually was provided to PMUY consumers.

oIn October 2023, the subsidy was increased to ₹300 per cylinder for the same refills per year.

• Increased Consumption: The average LPG consumption among PMUY consumers has risen by 29% from 3.01 refills in 2019-20 to 3.87 refills (till January 2024) pro-rated for 2023-24.

oAll PMUY beneficiaries are eligible for the targeted subsidy based on their increased consumption.

LPG Subsidy

• About: The Government of India provides gas subsidies as a type of financial assistance to beneficiaries. In an effort to help Indian households cope with inflation, this subsidy is provided on LPG cylinders.
• Beneficiaries receive the subsidy amount in their bank accounts.