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LATEST NEWS UPDATES | Modi's pet Ujjawala scheme wobbles as many beneficiaries drop out after their first LPG cylinder -Dhirendra K Jha

Modi's pet Ujjawala scheme wobbles as many beneficiaries drop out after their first LPG cylinder -Dhirendra K Jha

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published Published on Jun 12, 2017   modified Modified on Jun 12, 2017
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The number of LPG connections extended under this scheme may be rising rapidly, but LPG usage is not.

The aim was to free poor women from smoke-filled kitchens by giving them cooking gas connections. But one year after it was launched, the Pradhan Mantri Ujjawala Yojana seems to have run into rough weather.

On paper, the central government scheme which provides free liquefied petroleum gas, or LPG, connections to below the poverty line families, seems to be doing well. It has covered 2.2 crore households in the year since its launch on May 1, 2016, exceeding its target of 1.5 crore connections. Last month, Petroleum Minister Dharmendra Pradhan said that by 2019, the scheme would be rolled out to 5 crore more families who live below the poverty line.

However, gas agency dealers in several parts of the country, especially those in rural areas, have reported that an extremely low number of Ujjawala beneficiaries are returning for refills of their cylinders. Thus, the number of LPG connections may be rising rapidly, but LPG usage is not.

Low number of refills

“My agency caters to over 4,000 customers. Nearly half of them are Ujjawala beneficiaries,” said Anand Kumar of Jai Ma Gayatri Gas Service in Gosainganj block of Faizabad in Uttar Pradesh. “More than 60% of these beneficiaries have either taken no refill or have not done so more than twice in the last year.”

The upfront payment required for an LPG connection is waived for those signing up for the Ujjawala scheme. However, the oil marketing companies that supply gas cylinders through LPG dealers extend a loan to Ujjawala beneficiaries towards the cost of the gas stove and the first gas cylinder that they receive. The oil companies – Indian Oil, Bharat Petroleum and Hindustan Petroleum – recover this loan, which generally amounts to between Rs 1,500 to Rs 1,600 from the subsidy amount payable to the consumer for each refill.

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TheWire.in, 11 June, 2017, https://scroll.in/article/839961/modis-pet-ujjawala-scheme-wobbles-as-many-beneficiaries-drop-out-after-their-first-lpg-cylinder


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