Union govt. extends Ujjwala assistance by one more year

Context:

The Union Cabinet has approved the extension of the LPG subsidy of ₹300 per cylinder for up to 12 refills per year until the end of the next financial year, just ahead of the Lok Sabha elections.

Relevance: GS-02 (Government policies and interventions)

Highlights:

  • Coverage and Expenditure: Approximately 10.27 crore beneficiaries under the Pradhan Mantri Ujjwala Yojana (PMUY) will benefit from this scheme, with a total expenditure of ₹12,000 crore allocated for its continuation.
  • Previous Subsidy and Consumption: Initially, a targeted subsidy of ₹200 per cylinder for up to 12 refills per year was provided to PMUY consumers starting from May 2022. The average LPG consumption among PMUY consumers has increased by 29% since 2019-20, indicating the effectiveness of the scheme.

Objectives of the Ujjwala Scheme:

  • The Pradhan Mantri Ujjwala Yojana aims to provide clean and affordable LPG gas connections to rural and below poverty line households, replacing traditional cooking fuels like cow dung and wood coal.
  • Focusing on empowering women, the scheme enables them to benefit from clean and safe cooking environments, enhancing their health and well-being.
  • By promoting LPG as a cooking fuel, the scheme aims to reduce health risks associated with traditional fuels, particularly among women and children, thus improving overall household health.
  • The Ujjwala Yojana contributes to environmental conservation by reducing harmful emissions from traditional fuels, mitigating air pollution and environmental degradation.
  • Features of the Ujjwala Scheme:
    • Financial Assistance: Under the PMUY, eligible households receive a cash contribution of Rs 1600 for each LPG connection, facilitating the transition to clean cooking fuels.
    • Scale and Cost: The scheme targets to provide 8 crore LPG connections to households, with an additional 1 crore connections added. All administrative and assistance costs are borne by the government.
    • Employment Generation: Implementation of the scheme generates employment opportunities within the gas supply chain, contributing to economic development.

Beneficiaries under PM Ujjwala Scheme:

  • Target Groups: Initially focused on women from below poverty line (BPL) households, the scheme expanded to include categories such as SC/ST, forest dwellers, and residents of river islands.
  • Eligibility Criteria: To qualify for the scheme, applicants must be Indian women aged at least 18 years, falling under the below poverty line category, with accurate details registered in the SECC-2011 list.

Benefits of PM Ujjwala Yojana:

  • Access to Clean Cooking Fuel: The scheme offers LPG gas cylinders to eligible households, with financial assistance provided for initial costs.
  • Interest-Free Loans: Oil marketing companies offer interest-free loans to facilitate purchase and refilling of gas stoves, ensuring continued access to clean cooking fuel.
  • Nationwide Reach: The benefits of the Ujjwala Scheme are available across the country, prioritizing access in northern and northeastern states.

Ujjwala 2.0

  • Ujjwala 2.0, an enhanced version of the scheme, extends its coverage to migrant families, providing free LPG connections.
  • Additionally, it aims to provide piped gas to 21 lakh households across 50 districts, further improving access to clean cooking fuel.