Union Finance Minister Nirmala Sitharaman announced an LPG subsidy last week, which will aid millions of Indian households that are struggling to keep up with growing prices. The move by the Centre will primarily benefit households that have registered for the Pradhan Mantri Ujjwala Yojana.
"This year, we will grant a subsidy of Rs 200 per gas cylinder (up to 12 cylinders) to over 9 crore beneficiaries of Pradhan Mantri Ujjwala Yojana," Union Finance Minister Nirmala Sitharaman said in a series of announcements on May 21. “Our mothers and sisters will benefit from this. This will result in revenue of roughly Rs 6100 crore per year."
As a result of the economic impacts of the Covid pandemic, the PM Ujjwala scheme will be phased out in June 2020.
What will be the price of LPG cylinders?
Domestic and commercial cooking gas cylinders have suffered a series of price hikes in recent months, according to the announcement. In the national capital, a 14.2-kg LPG cylinder costs Rs 1,003. Following the government's decision, beneficiaries of the Pradhan Mantri Ujjwala Yojana will receive a subsidy of Rs 200 per cylinder in their bank accounts. The beneficiaries will pay Rs 803 per unit for a household LPG cylinder thanks to this subsidy.
What is the Pradhan Mantri Ujjwala Yojana?
The central government started the Pradhan Mantri Ujjwala Yojana in 2016 to make cooking gas available to rural and low-income households. "In May 2016, the Ministry of Petroleum and Natural Gas (MOPNG) launched the 'Pradhan Mantri Ujjwala Yojana' (PMUY) as a flagship scheme to make clean cooking fuel such as LPG available to rural and deprived households who were previously using traditional cooking fuels such as firewood, coal, cow-dung cakes, and so on," according to the PMUY website.
The Pradhan Mantri Ujjwala Yojana aims to provide underprivileged households with clean cooking fuels or LPG cylinders at subsidized costs. On April 25, 2022, about 9.17 crore LPG connections were granted under the scheme, according to the government.
LPG Cylinder Subsidy: Who is eligible?
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As per the 14-point declaration, any adult woman from an SC, ST, Pradhan Mantri Awas Yojana (Gramin), most-backward classes, Antyodaya Anna Yojana (AAY), tea and ex-tea garden tribes, forest dwellers, individuals residing in islands and river islands, SECC families (AHL TIN), poor household.
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Applicants must be over the age of eighteen.
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To apply for an LPG cylinder subsidy, the applicant must not have any other LPG connections.