Subsidy Details: On March 7, 2024, the Cabinet approved the continuation of a Rs 300 subsidy per 14.2 kg LPG cylinder for beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY) for the financial year 2024-2025. This subsidy is aimed to mitigate the effects of LPG price fluctuations in the international market.
Financial Allocation and Impact:
- The allocated budget for this subsidy extension is Rs 12,000 crore.
- It is estimated to benefit approximately 10 crore families, directly crediting the subsidy to the beneficiaries’ bank accounts for up to 12 refills per annum.
Usage Insights:
- Government data reveals a significant increase in the average LPG consumption among PMUY consumers from 3.01 refills in 2019-20 to 3.87 refills in 2024, marking a 29% increase.
- As of March 1, 2024, there are over 10.27 crore PMUY beneficiaries.
Program Background:
- The PMUY initially began in May 2016 and is overseen by the Ministry of Petroleum and Natural Gas.
- Initially, a Rs 200 subsidy was introduced in 2022, which was increased to Rs 300 in 2023.
About Pradhan Mantri Ujjwala Yojana (PMUY):
- Aimed to provide free LPG connections to women from rural and economically deprived households, improving health and reducing reliance on unclean cooking fuels.
- Eligibility includes women above 18 years from households below the poverty line as per the Socio-Economic Census 2011.
- Financial assistance includes a one-time support of Rs 1600 per connection.
Expansion Efforts:
- Ujjwala 2.0, launched in the FY 2021-22 budget, aims to distribute an additional 1 crore LPG connections by March 2022.
- The government increased its initial target from 5 crore to 8 crore connections, achieving this by September 2019—seven months ahead of schedule.
- For 2023-2026, an additional 75 lakh connections are planned with a budget of Rs 1650 crore.
This strategic extension ensures continued support for economically vulnerable families, aligning with the government’s health and environmental objectives.
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