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What is ‘Pradhan Mantri Ujjwala Yojana’?

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The Pradhan Mantri Ujjwala Yojana was launched recently to provide free LPG connections to 5 crore families across the country in the next 3 years. The scheme is a step in the right direction, but implementation will hold the key.

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Under the recently announced Pradhan Mantri Ujjwala Yojana scheme, free LPG connections will be provided to women who belong to BPL (below-poverty-line) households. It has been estimated that nearly 5 crore families will benefit from this. Prime Minister Narendra Modi has chosen Ballia, a district in Uttar Pradesh, to launch this scheme as the district’s average gas penetration is one among the lowest in the country. This scheme was sanctioned by the Union Cabinet of Economic Affairs on 10th March 2016. According to available data, approximately Rs. 8000 Crore has been reserved for the scheme. According to the scheme, each beneficiary will receive monetary support of Rs.1600 to get a cooking gas connection.

Consequences of using other fuels for cooking

In India the poor especially those in rural areas have limited access to LPG (liquefied petroleum gas), which is the household cooking gas. The spread of cooking gas has mainly taken place in the semi-urban and urban areas covering mostly the affluent and the middle-class families. Additionally, serious health hazards are associated with the alternate fuels such as wood, dried cow dung, kerosene and low quality coal which the poor use for cooking. World Health Organization reports an estimated 5 lakh deaths a year in India are caused by unclean cooking fuels, while a much larger number suffer from a range of respiratory illnesses. The indoor air pollution caused by low quality fuels is responsible for a significant number of respiratory illnesses which occur among small children. Studies reveal that having an open wood fire in the kitchen is almost as poisonous as 400 cigarettes in an hour.

Serious health hazards caused

Crores of women and girls are exposed to household air pollution which is caused by the use of solid fuels such as coal, dung cakes or biomass which is used for cooking in improperly ventilated kitchens and houses. Health experts have confirmed that smoke released from the burning process contains hazardous substances such as particulate matter and carbon monoxide which may lead to disease like lung cancer, heart disease, stroke and chronic obstructive pulmonary disease. According to WHO, around 3 billion people cook and heat their homes using open fires and simple stoves burning biomass (wood, animal dung and crop waste) and coal across the world and over 4 million people die prematurely from illness attributable to the household air pollution from cooking with solid fuels.

 Implementation of the social welfare scheme

To tackle these challenges and promote well being of the economically challenged, the Ujjwala Yojana scheme has been announced. It is the first social welfare scheme which will be implemented by the Union Ministry of Petroleum and Natural Gas. All other schemes till date such as the Jan Dhan Yojana for opening of savings accounts, the Sukanya Sammridhi Accounts, etc. have been implemented by other government ministries. As LPG connections are provided to the below-poverty-line households, it will empower the disadvantaged women in our society and protect their health as well as the health of their family. Additionally, it will reduce the time which these women spend on foraging wood, dung and other cooking fuel. Additionally, the Ujjwala Yojana is also expected to provide the rural youth with additional employment opportunities in the cooking gas rural supply chain.

How to apply for the Pradhan Mantri Ujjwala Yojana (PMUY)

The eligible BPL candidates who are interested in the Pradhan Mantri Ujjwala Yojana will have to go to the nearest LPG outlet or distribution center and ask for the prescribed application form. The application form can also be downloaded online. The applicants need to fill in their Aadhar number, contact details, savings account number, contact details and the declaration form on the last page. The applicants can opt either for a 5KG or 14.2 KG cylinder. Key documents that need to be submitted with the completely filled out form include:

  • Aadhar Card or Voter ID Card
  • Savings Account Passbook or bank account statement
  • Residence proof( in the form of telephone/ electricity/ water or telephone bill/house registration document)
  • BPL (Below Poverty Line) Ration Card
  • BPL certificate authorized by the Panchayat Pradhan
  • A recent passport size photograph

The application form along with the attached documents will have to be submitted with the LPG office in the area. The LPG field officials will check the details of the applicant and match them against SECC (Socio Economic and Caste Census) data to confirm eligibility. The LPG gas cylinder will be provided as soon as the applicant is found eligible. The applicant can also opt for an EMI option to cover the stove’s cost and the cost of the first refill.

The subsidies for LPG would be provided directly into the savings accounts of the women in need so that the possibility of corrupt practices is eliminated. This measure is expected to also increase the number of savings account applications especially in the rural areas.

Eligibility Criteria for the Scheme

  • The woman applicant must be minimum 18 years of age as on 1st May 2016
  • She should belong to a BPL household
  • Her house should not already own an LPG connection

According to reports, the BPL families will be identified after consultation with the Union territories and the state government. The social welfare scheme will be implemented over a three years period, FY 2016-17, 2017-18 and 2018-19. Covered under the “Give Back” programme, the PMUY scheme aims to provide five crore connections over a three year period

Ensuring Affordability

The move to provide concessional LPG connections is a crucial move in the right direction but additional steps need to be taken to ensure that all homes in India use modern fuel for cooking by 2019. Affordability is one major concern as households shift from solid fuels to modern fuels. Merely subsidized connections provided by the Ujjwala Yojana Scheme will not be sufficient. There have been state level schemes earlier like the Deepam Scheme in Andhra Pradesh, but they were not successful in meeting their goals. As per the current scheme, these low income households will still have to bear the cost of the stove and other accessories as well as the price of the LPG cylinder (less the subsidy).

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About Author

Abhishek Chakravarti is a Content Marketer working with paisabazaar.com. After his day job, he is known to stay up long into the night trying to figure out how the previous day could have been lived in a different way. When not providing financial advice to others, he has been known to sneak a few peeks at the newest copies of various financial magazines to stay updated and inspired.

5 Comments

  1. hello,

    This is interesting and informative. Thanks for doing this. This is a valuable public service and I hope you et recognized for it.

    Can you reply to this and tell where you got the information about the procedure and eligibility for applying for Pradhan Mantri Ujjwala Yojana (PMU)? Where will the same information for PAHAL be found?

    Thanks in advance

  2. very informative.continue your service to the public daily.It will be benefited a lot who are eagerly sit and search in the internet to quench their thirst of knowledge.

  3. this is the most useful and admirable post which really helped me to solve my problem.
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  4. The scheme provides financial support as subsidy of INR.1600 [Refundable deposit for one cylinder (INR.1450) and cost of regulator (INR.150)] and for each LPG connection to the gas agency. Yet, applicant has to incur the cost of the stove and other accessories as well as the price of the LPG cylinder. This extra cost may range from INR 1500-2000 depends on the service provider (Gas agencies)

    My query:
    1. As of now seven states have been implementing (UP, Bihar, Odisha, Rajasthan, Gujarat, Uttarakhand and MP). Whether PMUY would be implemented in remaining states?

    My concern:
    1. How many beneficiaries of PMUY will be self-sustainable (able to buy subsidized LPG cylinders) to continue using the LPG for rest of their lifetime? We have to wait and see the impact assessment studies on PMUY.

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