PM to launch Rs 8K cr scheme for free LPG connections to poor

New Delhi: Prime Minister Narendra Modi will on May 1 launch an ambitious Rs 8,000 crore scheme to provide 5 crore free LPG connections to BPL families using the money saved from 1.13 crore cooking gas users voluntarily giving up their subsidies.

Modi will launch the Pradhan Mantri Ujjwala Yojana at Ballia in Uttar Pradesh on May 1 and do a repeat function at Dahod in Gujarat on May 15.

Though 'Give-it-Up' campaign seeking the well-heeled to voluntarily surrender cooking gas subsidies for one year was launched in January, 2015, Modi on March 27 last year officially launched the programme.

"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. Uttar Pradesh saw nearly 13 lakh users give up subsidies, followed by Delhi (7.26 lakh). Prime Minister's home state of Gujarat was way down the list with just 4.2 lakh giving up subsidies. Pradhan's home state of Odisha was even lower at 1.3 lakh.

"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.

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. "We have released 60 lakh new connection to poor in the last one year," he said.

Modi, Pradhan said, will on May 1 launch the Pradhan Mantri Ujjwala Yojana for providing providing free LPG connections to women from BPL households.

"Under the scheme, Rs 8,000 crore has been earmarked for providing 5 crore LPG connections to BPL households," he said, adding that in the first year 1.5 crore connections will be provided.

The scheme provides a 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, he said.