PM Narendra Modi To Launch Rs. 8,000 Crore Scheme For Free LPG Connections To Poor

Indian Prime Minister Narendra Modi will start an ambitious project of Rs. 8000 crores to provide 5 crores free LPG connections to the poor women. The money saved from 1.13 crores cooking gas users who voluntarily gave up their subsidies also included in this project. Prime Minister will launch the Pradhan Mantri Ujjwala Yojana at Ballia in Uttar Pradesh on May 1 and at Dahod in Gujarat on May 15.

‘Give-it-Up’ campaign was officially started by Narendra Modi on March 27, 2016. “Since the launch, 1.13 crores people have given up LPG subsidies and are buying cooking gas at market price,” Oil Minister Dharmendra Pradhan told. This campaign was successful and many users came forward to help the poor.

Modi to give Free LPG gas

According to the reports, Maharashtra tops the list with 16.44 lakhs consumers giving up subsidies, Uttar Pradesh-13 lakhs, Delhi-7.26 lakhs, Gujarat-4.2 lakhs and Odisha-1.3 lakhs.

Consumers are allowed to take 12 cylinders of 14.2 kg or 3 bottles of 5 kg in a year at subsidised rates. A subsidised 14.2-kg cylinder is currently available at Rs 419.13 in Delhi while the 5-kg pack costs Rs 155. Market-priced LPG is available at Rs 509.50 per 14.2-kg cylinder.

Around Rs. 5,000 crores of subsidies saved through the campaign are being used to provide LPG connection to the poor. So far, 60 lakhs new connections are given to the poor last year. “Under the scheme, 1.5 crores connections will be provided in the first year,” said Pradhan. The scheme provides a financial support of Rs 1,600 for each LPG connection to the BPL households.

Free LPG connections to poor

The BPL families who are eligible for the scheme will be identified by the State Governments and the Union Territories. Pradhan said the country currently has 16.64 crores active LPG consumers. Of the 21 million tonne LPG requirement, nearly 40% is imported and this will go up as demand rises by double digit with new connections by 50-55%.

If the ‘Give it away’ campaign gets more successful and many people give up their subsidy on LPG gas, the country’s dependence on energy imports will go down by 10% by 2022. There is an option of opting out from subsidy by submitting written request to the distributor or electronically at mylpg.in.

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