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

News-CRUX-10     8th March 2024        
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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.