Rs.8K cr scheme for free LPG connections | Fusion - WeRIndia

Rs.8K cr scheme for free LPG connections

Rs.8K cr scheme for free LPG connections

Prime Minister Narendra Modi is all set to launch an ambitious new Rs 8,000 crore scheme to provide free LPG connections to 5 crore BPL families. The scheme will be funded with the money saved due to 1.13 crore gas users giving up their subsidies. The Pradhan Mantri Ujjwala Yojana will be launched by the PM at Ballia in Uttar Pradesh on May 1. There will also be a do a repeat function at Dahod in Gujarat on May 15.

The ‘Give-it-Up’ campaign was launched in January of 2015 asking people to voluntarily surrender their cooking gas subsidies for one year. Oil Minister Dharmendra Pradhan said that 1.13 crore people have given up their LPG subsidy since the launch.

State-wise, Maharashtra has the most number of consumers who gave up their subsidies with 16.44 lakh consumers.13 lakh consumers from Uttar Pradesh gave up subsidies and 7.26 lakh in Delhi. The home state of PM Gujarat was however one of the lowest with only 4.2 lakh giving up subsidies.

Maharashtra, Uttar Pradesh, Delhi, Karnataka and Tamil Nadu account for around half of the people gave up LPG subsidies. At present, consumers can have 12 cylinders of 14.2 kg each or 34 bottles of 5 kg each at subsidised rates. The price of a subsidised 14.2-kg cylinder is currently at Rs.419.13 per bottle in Delhi and the 5-kg pack costs Rs.155.

On the other hand, the Market-price of LPG is Rs.509.50 per 14.2-kg cylinder. By giving up subsidised LPG, the government’s subsidy bill will be cut. Last year, the subsidy bill at Rs.30,000 crore. With so many people giving up subsidies, nearly Rs.5,000 crore of subsidies was saved. This money will be used to provide LPG connection to the poor. The government managed to release 60 lakh new connections to poor in the last one year.

Image Credit: Photo by Adli Wahid on Unsplash (Free for commercial use)

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