PM to launch Rs. 8,000 crore scheme for free LPG connections to poor

Thakur

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Prime Minister Narendra Modi on May 1 will launch Rs. 8,000 crore scheme to provide 5 crore free LPG connections to Below Poverty Line (BPL) families using the money saved from 1.13 crore cooking gas users voluntarily giving up their subsidies.

The scheme is called Pradhan Mantri Ujjwala Yojana and Mr. Modi will be launching it on May 1 at Ballia in Uttar Pradesh and Dahod in Gujarat on May 15.

The ‘Give-it-Up’ campaign seeking the well-heeled to voluntarily surrender cooking gas subsidies for one year was launched in January, 2015.

“Since the launch, 1.13 crore people have given-up LPG subsidies and are buying cooking gas at market price,” Oil Minister Dharmendra Pradhan told reporters here.

Maharashtra tops the list with 16.44 lakh consumers giving up subsidies, then Uttar Pradesh where nearly 13 lakh users gave up subsidies, followed by Delhi with 7.26 lakh people giving up subsidies. Prime Minister’s home state Gujarat was way down the list with just 4.2 lakh giving up subsidies. In Odisha around 1.3 lakh people gave up subsidies.

“Five states of Maharashtra, Uttar Pradesh, Delhi, Karnataka and Tamil Nadu account for roughly half of the people who have given up LPG subsidies,” Mr. Pradhan said.

Consumers are currently entitled to 12 cylinders of 14.2 kg each or 34 bottles of 5 kg each in a year at subsidised rates. A subsidised 14.2 kg cylinder is currently available at Rs. 419.13 per bottle in Delhi while the 5 kg pack costs Rs. 155.

Market-priced LPG is available at Rs. 509.50 per 14.2 kg cylinder. Giving up subsidised LPG will help cut the government’s subsidy bill, which was at Rs. 30,000 crore on the fuel last fiscal.

Nearly Rs. 5,000 crore of subsidy saved through the campaign is being used to provide LPG connection to the poor.



http://m.thehindu.com/news/national/lpg-connection-for-bpl-pm-to-launch-pradhan-mantri-ujjwala-yojana/article8509447.ece
 
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