PM launches Ujjwala 2.0

Context:

The Prime Minister launched the second phase of Pradhan Mantri Ujjwala Yojana (PMUY) or Ujjwala 2.0 Scheme.

Relevance:

GS-II: Social Justice and Governance (Welfare Schemes, Government Policies & Interventions)

Dimensions of the Article:

1. About Pradhan Mantri Ujjwala Yojana (PMUY) – 1
2. Why was PMUY Necessary?
3. About PMUY-II
4. Survey findings on Success and deficiencies in PMUY-I Implementation

About Pradhan Mantri Ujjwala Yojana (PMUY) – 1

• The Pradhan Mantri Ujjwala Yojana (PMUY) is a government scheme launched in 2016 which envisages the distribution of 50 million LPG connections to women below the poverty line.
• PMUY is a scheme of the Ministry of Petroleum & Natural Gas.
• There are 27.87 Crore active LPG consumers in the country, with the PMUY beneficiaries accounting for over 8 crores.
• Advantages of PMUY:
  • 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.

Why was PMUY Necessary?

• As per the estimates of the World Health Organisation (WHO), about 5 lakh deaths in India occurred due to unclean cooking fuel.
• These deaths were caused mostly due to non-communicable diseases including heart disease, stroke, chronic obstructive pulmonary disease and lung cancer.
• Providing LPG connections to families below the poverty line will ensure universal coverage of cooking gas in the country.
• The scheme can be a tool for women empowerment in that LPG connections and clean cooking fuel can reduce cooking time and effort, and in most of India, cooking is a responsibility shouldered solely by women.
• The scheme also provides employment to the rural youth in the supply chain of cooking gas.

About PMUY-II

• The PMUY-II is aimed to provide maximum benefit to the migrants who live in other states and find it difficult to submit address proof.
• Now they will only have to give “Self Declaration” to avail the benefit.
• The scheme provides a financial support of Rs 1600 for each LPG connection to the BPL households.
• Along with a deposit-free LPG connection, Ujjwala 2.0 will provide the first refill and a hotplate free of cost to the beneficiaries.
• Under Ujjwala 2.0, an additional 10 million LPG connections will be provided to the beneficiaries. Government has also fixed a target of providing piped gas to 21 lakh homes in 50 districts.

Survey findings on Success and deficiencies in PMUY-I Implementation

Positives of PMUY-I

• PMUY-I had overshot its target of giving 80 million free LPG connections according to data from the National Sample Survey conducted by the National Statistical Office (NSO).
• The data also shows that in the last four years (2016-2020), PMUY connections account for 71% of growth in total domestic LPG connections in the country.
• The fact that almost 70% of PMUY beneficiaries are from the bottom 40% of the households, shows the scheme has been remarkably successful in reaching poor households.

Negatives of PMUY-I

• A unit level analysis of data from the NSO shows that 43% of PMUY beneficiaries were not using LPG for cooking. The share of beneficiaries not using LPG for cooking increases down the economic ladder.
• The 2018 NSO survey findings show that the average monthly per capita expenditure (MPCE) of the poorest 20% households in India was Rs. 1,065 – which means a cylinder refill costing Rs. 500 would comprise nearly half of a household’s MPCE.
• Even though PMUY and subsidised LPG consumers receive a subsidy on refill, they have to make the full payment upfront before the subsidy amount is transferred back to them.
• The high cost of gas refills, the CAG report said, has become a constraint in ensuring sustained usage of LPG.
• To be sure, beneficiaries under the PMUY scheme could also opt for a 5 kg cylinder in place of a routine 14.2 kg cylinder.
• The government also allowed swapping the bigger cylinder with the smaller one to make it easier for consumers to get a refill.

-Source: The Hindu