Centre hikes LPG Subsidy for Ujjwala Beneficiaries to ₹300 per Cylinder

Central Idea

• The Union Cabinet has approved an increase in the subsidy provided on LPG cylinders under the Ujjwala scheme, raising it from ₹200 to ₹300.
• The subsidy increase applies to up to 12 refills per year for beneficiaries.

Why such move?

• The decision to enhance the subsidy comes ahead of crucial Assembly elections in five states: Madhya Pradesh, Rajasthan, Telangana, Chattisgarh, and Mizoram.

Pradhan Mantri Ujjwala Yojana (PMUY)

• PMUY, introduced by the Ministry of Petroleum and Natural Gas, aims to provide clean cooking fuel, such as LPG, to rural and disadvantaged households, reducing their reliance on traditional fuels like firewood, coal, and cow dung cakes.
• Phases of PMUY:

1. Phase I: Launched on May 1, 2016, with a target to release 8 Crore LPG connections by March 2020, achieving a significant increase in LPG coverage.
2. Ujjwala 2.0: This phase aimed to release an additional 1 crore LPG connections, a target achieved in January 2022, subsequently expanded to release an additional 60 lakh LPG connections under Ujjwala 2.0.

Key Features

• Provides ₹1600 financial support for each LPG connection to Below Poverty Line (BPL) households.
• Offers deposit-free LPG connections, including the first refill and a free hotplate for beneficiaries.
• Benefits for beneficiaries include:

1. Eligible beneficiaries receive a free LPG connection.
2. Subsidy on the first six refills of 14.2 kg cylinders or eight refills of 5 kg cylinders.
3. Option to use EMI facility for stove and first refill costs.
4. Opportunity to join the PAHAL scheme for direct subsidy transfers to bank accounts.