Government allocates ₹1,650 cr for 75 lakh free LPG connections

The government on Wednesday allocated Rs 1,650 crore towards the release of an additional 75 lakh free LPG connections under the Pradhan Mantri Ujjwala Yojana (PMUY) over three years ending March 2026.

As per the existing modalities of Ujjawala 2.0, the first refill and stove will also be provided free of cost to Ujjwala beneficiaries, Information and Broadcasting Minister Anurag Thakur told reporters after the meeting of the Union Cabinet.

He said Cabinet, chaired by Prime Minister Narendra Modi approved the extension of PMUY for the release of 75 lakh LPG connections over three years from Financial Year 2023-24 to 2025-26.

The total financial implication will be Rs 1,650 crore.

A targeted subsidy of Rs 200 per 14.2 kg LPG cylinder for up to 12 refills per year is being provided to PMUY consumers.

With the release of an additional 75 lakh connections, the number of PMUY beneficiaries will go up to 10.35 crore.

The total financial implication will be Rs 1,650 crore. This includes Rs 2,200 per connection (14.2 kg single bottle connection/ 5 kg double cylinder connection), and Rs 1,300 per connection (5 kg single cylinder connection).

An official release on the Cabinet decision said some eligible households still do not have LPG connections.

This is due to multiple reasons – new households are formed every year as a result of rising population, marriages, migration, nuclearisation of families, leftover households, extremely remote locations etc.

There is demand for 15 lakh PMUY connections as of August 31, 2023.

Last month, the government on Tuesday announced a Rs 200 per cylinder cut in prices of domestic cooking gas to soften the impact of rising inflation on households.

A 14.2-kg LPG cylinder in the national capital cost Rs 903.

For Ujjwala beneficiaries, the price of an LPG cylinder is Rs 703 after considering the continuing Rs 200 per cylinder subsidy.

Pradhan Mantri Ujjwala Yojana was launched by the Prime Minister in May 2016 to provide LPG connections to women of below poverty line (BPL) families.

PMUY has majorly contributed to increase in LPG penetration in the country from 62 per cent in 2016 to near saturation now, the release said.