The government has raised the subsidy amount for Pradhan Mantri Ujjwala Yojana beneficiaries from ₹200 to ₹300 per LPG cylinder, Union Minister Anurag Thakur announced during a briefing on Cabinet decisions on Wednesday.
Ujjwala beneficiaries currently pay ₹703 per 14.2-kg cylinder as against the market price of ₹903. After the decision of the Union Cabinet, they will now pay ₹603.
The decision comes just a month after the Centre reduced the price of cylinders for domestic cooking gas by ₹200 for all consumers. After the August decision Thakur has said that due to this supplementary subsidy, there could be an additional financial implication of 7,680 crore for the financial year 2023-24.
The Pradhan Mantri Ujjwala Yojana (PMUY), initiated on May 1, 2016, by PM Modi in UP's Ballia, aims to provide cooking fuel such as LPG to rural households.
The focus of the scheme is on offering LPG connections to women from below the poverty line (BPL) households, SC/ST communities, beneficiaries of Pradhan Mantri Awas Yojana (PMAY), Antyoday Anna Yojana (AAY), forest dwellers, and other disadvantaged groups.
The Union Cabinet had last month approved the extension of PMUY for release of 75 lakh LPG connections over three years from the financial year 2023-24 to 2025-26. The 75 lakh additional Ujjwala connections will take total number of PMUY beneficiaries to 10.35 crore.
The decision on additional subsidies for Ujjawala beneficiaries has come ahead of assembly polls in five states.
Elections in Rajasthan, Madhya Pradesh, Mizoram, Chhattisgarh and Telangana are due later this year ahead of the 2024 Lok Sabha polls.