govt-extends-200-subsidy-under-pmuy-by-a-year

  • Why in News- The government have extended the subsidy of ₹200 per 14.2 kg LPG cylinder under the Pradhan Mantri Ujjwala Yojana (PMUY) for a year, in view of the high prices of petroleum products in the international market. 
  • Pradhan Mantri Ujjwala Yojana Launched in May 2016.
  • Aim
    • To provide LPG (liquefied petroleum gas) connections to poor households.
  • Key features
  • A deposit-free LPG connection is given to eligible with financial assistance of Rs 1,600 per connection by the Centre.


 

Target

  • The scheme gained traction with its ambit being expanded to include 80 million poor families from the earlier target of 50 million families with an additional allocation of Rs. 4,800 crore.

Eligibility criteria

  • Applicant must a woman above the age of 18 and a citizen of India.
  • Applicant should belong to a BPL (Below Poverty Line) household.
  • No one in the applicant’s household should own an LPG connection.
  • The household income of the family, per month, must not exceed a certain limit as defined by the government of the Union Territories and State Government.
  • Must not be a recipient of other similar schemes provided by the government.

Under Ujjwala 2.0

  • Migrant workers would no longer have to struggle to get address proof documents to get the gas connections.
  • They workers would only be required to submit a self-declaration of their residential address to get the gas connection.

Achievements:

  • In the first phase of the PMUY, 8 crore poor families, including from the Dalit and tribal communities, were given free cooking gas connections
  • The LPG infrastructure has expanded manifold in the country. In the last six years, more than 11,000 new LPG distribution centres have opened across the country.

Challenges:

  • Low Consumption of Refills:
    • Encouraging the sustained usage of LPG remains a big challenge, and low consumption of refills hindered recovery of outstanding loans disbursed under the scheme..
  • System Anomalies:
    • There are deficiencies such as the issuance of connections to unintended beneficiaries, and problems with the software of the state-run oil marketing companies for identifying intended beneficiaries and inadequacies in the deduplication process.

Way Forward

  • The scheme should be extended to poor households in urban and semi-urban slum areas.

Entering Aadhaar numbers of all adult family members of existing as well as new beneficiaries to make deduplication effective and appropriate measures in distributors’ software to restrict issuance to ineligible beneficiaries.