Pradhan Mantri Ujjwala Yojana – Free LPG Connection Scheme for BPL Families

Pradhan Mantri Ujjwala Yojana is a free LPG connection scheme to be launched on 1st May 2016. Under the scheme, the government will provide free LPG connections to BPL households in the country.

The central government under the Pradhan Mantri Ujjwala Yojana has set a target of distributing free LPG connections to 5 Crore BPL households across the country. The scheme would be implemented over three years from financial year 2016-17 to 2018-19.

Under the PM Ujjwala Yojana, government has set a budget of Rs. 8000 Crore for three years. In the year 2-16-17 alone, the government would distribute free LPG connections to 1.5 Crore BPL households with a budget outlay of Rs. 2000 crore.

Other than providing free LPG connections to BPL households, the scheme is aimed at empowering women and protecting their health. Pradhan Mantri Ujjwala Yojana will also help in reducing the indoor as well as outdoor pollution. Reducing the indoor pollution will help in reducing the serious health hazards in children and women caused due to burn of unclean fossil fuel for cooking.

Under the Pradhan Mantri Ujjwala Yojana, the central government will provide a financial assistance of Rs. 1600/- to each eligible BPL (Below Poverty Line) family. The assistance would be given to purchase a new connection in the name of Women person of the household only. The government will also provide EMI facility to buy stove and refill.

The identification of the eligible BPL families will be done in consultation with the state governments and union territories.

The Ujjwala Yojana will be funded by the money saved in LPG subsidy through “Give-it-up” campaign. Launched in January 2015, about 1.13 Crore LPG subscribers have given up the LPG subsidy and buying the LPG cylinders at market price. Central government has saved thousands of crores through the campaign.

Pradhan Mantri Ujjwala Yojana is the first scheme in the history to be implemented by the Ministry of Petroleum and Natural Gas which will benefit crores of women belonging to poor families in India.

At present out of 16.64 crore active LPG consumers in the country, most are in the Urban and semi urban areas. Rural areas in the country have limited access to the LPG and still using unclean fossil fuel for cooking purpose.

India imports about 40% of its total requirement of 21 million tonne LPG. After the successful implementation of the scheme, the import may rise to 50-55% as per the estimates.

If implemented successfully, Pradhan Mantri Ujjwala Yojana is expected to improve the health of women and children belonging to the poorest households in India.