India’s Prime Minister Narendra Modi will launch “Pradhan Mantri Ujjwala Yojana” at Ballia in Uttar Pradesh. Narendra Modi will launch Rs 8,000 crore scheme for give free cooking gas connection to poor women. Then this Pradhan Mantri Ujjwala Yojana will re-launch in Modi’s home town Gujarat on 15th May 2016.
Oil Minister Dharmendra Pradhan said that, “Under the scheme, Rs 8,000 crore has been earmarked for providing 5 crore LPG connections to BPL households. Since the launch (of ‘Give-it-Up’ campaign), 1.13 crore people have given-up LPG subsidies and are buying cooking gas at market price.”
The estimated cost of this project is Rs 8,000 crore. “Five states of Maharashtra, Uttar Pradesh, Delhi, Karnataka and Tamil Nadu account for roughly half of the people who have given up LPG subsidies,” Pradhan said.
Maharashtra tops the list with 16.44 lakh consumers giving up subsidies. Uttar Pradesh saw nearly 13 lakh users give up subsidies, followed by Delhi (7.26 lakh). Gujarat was way down the list with just 4.2 lakh giving up subsidies while oil Minister Dharmendra Pradhan’s home state of Odisha was even lower at 1.3 lakh.
LPG is available in Market 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 saved through the Give-it-Up campaign. The Give-it-Up campaign is used to provide LPG connection to poor.
“We have released 60 lakh new connection to poor in the last one year,” he said. According to Mr Pradhan, in the first year 1.5 crore connections will be provided. The Pradhan Mantri Ujjwala Yojana will be provides financial support of Rs 1,600 for each LPG connection to the BPL households.
“The identification of eligible BPL families will be made in consultation with the State Governments and the Union Territories. We expect import ratio will rise to 50-55 per cent.” said Pradhan.
The official said that the surrendered subsidy is used by the government to provide cooking gas connection to the poor in rural households free of cost. “Providing LPG connections to BPL households will ensure universal coverage of cooking gas in the country. This measure will empower women and protect their health. It will reduce drudgery and the time spent on cooking. It will also provide employment for rural youth in the supply chain of cooking gas.” added Mr Pradhan.
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