May 202016

All Schemes Launched by PM Modi for LPG Consumers

Since he took the chair as Prime Minster in 2014, PM Modi is busy in rejuvenating all important sectors of the country. From Railways to Finance to Startup ecosystem, he has shown his vision everywhere and has outlined some great plans for these sectors/departments. Needless to say that when he declared 2016 as “Year of the LPG Consumer”, he certainly might’ve had some good plans for that industry too.

All LPG Schemes Launched by Modi

Now those plans are becoming more and more visible time is passing. In his most recent move to increase the number of LPG connections among BPL households he launched a new initiative called Pradhan Mantri Ujjwala Yojana in Ballia. Let’s take a look at all schemes that he has launched to redefine the experience and penetration of LPG in our country:

Pradhan Mantri Ujjwala Yojana (PMUY)

While LPG has reached more than 61% households by now, it’s still an urban/semi-urban phenomenon. In many rural areas LPG connections are still luxuries. In Ballia, for example, only 8 out of 100 households have LPG connections. Our PM wants to change that scenario with PMUY. Under this scheme 5 crore free LPG connections will be provided to BPL households of country over the course of next 3 years. It’s an initiative of Rs. 8,000 crore, which will be funded partly by the funds saved from people who gave up their LPG subsidy. Around Rs. 2,000 crore has already been provisioned for the purpose in current Fiscal Year.

Given below are the particulars of this scheme:

  • Financial support of Rs. 1,600 will be provided to each BPL household for purchasing LPG connection. The connections will be issued in the name of women customers and eligible households will be identified with the help of their respective State governments.
  • To afford the cost of gas stove and refilling BPL consumers will be allowed to pay for them in easy EMIs. This is arguably the best feature of this scheme.

Pratyaksh Hanstantarit Labh (PAHAL) Yojana

Providing clean fuel as economically  as possible to those who can’t afford it is essential for increasing its usage in the country. Therefore, a provision was made to provide 12 LPG cylinders per year on subsidized rates to every customer. However, some consumers were using the scheme to their own advantage by getting duplicate or bogus connections. PAHAL Yojana aimed to put an end to it by directly transferring the subsidy to bank accounts of consumers after purchase of cylinder had been made on full price. Each bank account was linked to only one gas connection through the interface of Aadhaar card.

Today Pahal has become world’s largest cash transfer program with more than 15 crore people successfully receiving the subsidies in their accounts, which accounts for 91% of total 16 crore LPG connections in the country. More than Rs. 30,000 crores have been transferred under the scheme and cash transfer failure rate is a negligible 0.24%.

GiveItUp Campaign

For each benefit that government provides to its citizens it’s important to ensure that it reaches the right people. Benefits like subsidies should be provided only to people who really need them. On 27th of March 2015 PM Modi requested the well-off people of the country to give up their LPG subsidy. He had said that money saved from it will be used to provide LPG connections to BPL households.

The request was accepted by more than 10 million LPG consumers, who have willingly given up LPG subsidy. The best part is that this feat has been achieved without adding any rule or regulation or forcing anyone to surrender their subsidies – people have come forward willfully to do so.

The Results

It’s just a beginning (a good beginning actually), but the results look good already. Have a look at last year’s data:

New connections Issued 1.5 crore
New BPL connections 50 lakh
% of new BPL consumers 33.33%
DBT Coverage 91% of gas consumers
Total Funds Transferred Under DBT Rs. 30,000

As you can see, in last year alone more than 50 lakh new connections were issued to BPL households, which is highest ever. If things continue to go like this, by 2019 nearly every house in the country will have LPG. Let’s hope for it. And if you can, then please also try for it with your actions by surrendering your subsidy because your money may provide clean fuel to someone who doesn’t have it.

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