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LATEST NEWS UPDATES | Modi's Gas for the Poor Scheme Marred by Data Inflation, Poor Implementation -Ravi Nair

Modi's Gas for the Poor Scheme Marred by Data Inflation, Poor Implementation -Ravi Nair

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published Published on Aug 13, 2018   modified Modified on Aug 13, 2018
-TheWire.in

Apart from subsuming all earlier Central and state schemes under the PMUY to boost numbers, a major proportion of scheme beneficiaries cannot afford to use gas despite getting a free connection.

New Delhi:
The Pradhan Mantri Ujjwala Yojana (PMUY) is one of the flagship schemes of the Narendra Modi government. Officially launched on May 1, 2016, the government regards it as one of its greatest success stories. The official claim is that within a short span of 26 months, the scheme has achieved its target – “five crore LPG connections will be provided to BPL families with a support of Rs 1,600 per connection in the next three years”. The latest figure is “5,14,07,565 connections”.

The number is impressive by any yardstick, even if the Modi government has built upon the success of pre-existing Central schemes as well as parallel schemes run by state governments – particularly in south India. And yet, a closer look at the data suggests the new scheme is falling short of meeting the underlying objective, which is to provide families below the poverty line with continuous, affordable gas for cooking.

In October 2009, the erstwhile UPA government launched the RGGLV (Rajiv Gandhi Gramin LPG Vitarak Yojana) with the objective of installing Liquified Petroleum Gas distributors in remote and inaccessible areas to increase LPG penetration. In 2009, the government also started a programme of one time financial assistance for LPG connections to families below the poverty line (BPL). The assistance was provided through corporate social responsibility (CSR) funds of the government’s oil marketing companies (OMCs).

Under this scheme, the government asked all central public sector undertakings (PSUs) in the petroleum business including OMCs to spend 20% of their CSR funds to give free LPG connections (first LPG cylinder and regulator free of cost) to BPL families. An IOCL publication mentions in their CSR page that since 2009, the company has been using 2% of its net profit year for CSR and 20% of this 2% for free LPG  for BPL families.

It details: “Under the scheme, the security deposit for 1 cylinder and 1 pressure regulator is provided from the fund created for this purpose by contributions from the CSR budget. During 2015-16, 22.8 lakh new connections were released by IndianOil and cumulatively, 32.4 lakh BPL families have benefitted from this scheme.”

Please click here to read more.

TheWire.in, 11 August, 2018, https://thewire.in/government/pradhan-mantri-ujjwala-yojana-separating-fact-from-fiction


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