Pradhan Mantri Ujjwala Yojana Unveils Rs 300 LPG Subsidy Extension
The government has taken a significant step to support the Pradhan Mantri Ujjwala Yojana (PMUY) consumers by extending a Rs 300 subsidy on LPG cylinders until March 31, 2025, as announced by Union Minister Piyush Goyal. This move, with a total expenditure of Rs 12,000 crores, aims to alleviate the financial burden on beneficiaries of this crucial scheme.
In addition to the subsidy extension, the Union Cabinet has approved a 4 percent hike in Dearness Allowance (DA) for Central government employees and Dearness Relief for pensioners, effective from January 1, 2024, according to the Union Minister's statement.
Furthermore, the Cabinet has given the green light to the Minimum Support Price (MSP) for Raw Jute for the 2024-25 season, setting it at Rs 5,335 per quintal. This marks a substantial increase of Rs 285 per quintal compared to the previous season, demonstrating the government's commitment to supporting agricultural sectors.
As of March 1, 2024, the Pradhan Mantri Ujjwala Yojana has successfully reached more than 10.27 crore beneficiaries, showcasing its widespread impact and relevance.
The inception of PM Ujjwala Yojana dates back to 2016 when the Modi government introduced this initiative to make Liquified Petroleum Gas (LPG) accessible to rural and economically deprived households. The primary objective was to provide deposit-free LPG connections to adult women in impoverished households, promoting the use of clean cooking fuel.
Given that India imports around 60 percent of its LPG requirement, the government implemented measures to shield PMUY beneficiaries from the impact of international price fluctuations. In May 2022, a targeted subsidy of Rs 200 per 14.2 kg cylinder for up to 12 refills per annum was initiated, extending to proportionately pro-rated amounts for 5 kg connections.
Building upon this, in October 2023, the government increased the targeted subsidy to Rs 300 per 14.2 kg cylinder for up to 12 refills per annum, offering a more substantial financial cushion to PMUY consumers. As of February 1, 2024, the effective price of domestic LPG for PMUY consumers in Delhi stands at Rs 603 per 14.2 kg LPG cylinder.
Notably, this targeted subsidy has contributed to a noteworthy increase in the average LPG consumption of PMUY consumers. From 3.01 refills in 2019-20, it has surged by 29 percent to 3.87 refills (till January 2024), pro-rated for the 2023-24 period. All PMUY beneficiaries are eligible for this targeted subsidy, emphasizing the inclusive nature of the government's efforts to promote clean energy adoption in households across the nation.
In conclusion, these recent developments underscore the government's commitment to both economic well-being and sustainable agriculture, making strides towards a more inclusive and prosperous India.
