The Union Cabinet, led by Prime Minister Narendra Modi, has approved the continuation of a targeted subsidy of Rs. 300 per 14.2 kg LPG cylinder for beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY) until March 31, 2025. The total expenditure allocated for the fiscal year 2024-25 is estimated to be Rs. 12,000 crore, highlighting the government’s commitment to supporting clean energy initiatives.
Enhancements in the Scheme in 2024
In October 2023, the government revised the subsidy amount for PMUY beneficiaries, increasing it from Rs. 200 to Rs. 300 per LPG cylinder. This extension ensures continued support for up to 12 refills per year, aiming to enhance accessibility to clean cooking fuel and mitigate the financial burden on rural and disadvantaged households.
About the Scheme
Launched in May 2016, the Pradhan Mantri Ujjwala Yojana aims to provide deposit-free LPG connections to adult women from economically weaker sections. By promoting the use of liquefied petroleum gas (LPG) for cooking, the scheme endeavors to improve health outcomes, reduce indoor air pollution, and empower women by relieving them from the burden of collecting traditional fuels.
Benefits of the Subsidy Extension
The extension of the subsidy under the Ujjwala scheme holds several significant benefits for rural households. By subsidizing LPG cylinders, the government ensures affordability and encourages the sustained use of clean energy, thereby promoting environmental sustainability and public health. Moreover, the subsidy directly deposited into beneficiaries’ bank accounts enhances transparency and eliminates intermediaries, ensuring that the intended beneficiaries receive the benefits directly.
Key Data Points
As on 1st March, 2024 there are more than 10.27 crore PMUY beneficiaries. The total expenditure will be Rs. 12,000 crore for financial year 2024-25.
The subsidy is credited directly to bank accounts of the eligible beneficiaries after filling the form.
The subsidy amount of Rs. 300 per cylinder will be provided for up to 12 refills per year, easing the financial burden on rural households.
Average LPG consumption among PMUY consumers has increased by 29 percent from 3.01 refills in FY20 to 3.87 refills by January 2024, indicating the growing acceptance and usage of LPG as a cooking fuel.
The effective price of domestic LPG for PMUY consumers in Delhi stands at Rs. 603 per 14.2 kg cylinder, ensuring affordability and accessibility for beneficiaries.
The extension of the subsidy under the Pradhan Mantri Ujjwala Yojana underscores the government’s commitment to promoting clean energy solutions and improving the socio-economic well-being of rural households across the country.
