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Last Updated : Feb 01, 2019 11:51 AM IST | Source: Moneycontrol.com

Budget 2019: FM Piyush Goyal targets 8 crore free LPG connections under Ujjwala scheme by 2020

Under the scheme, the government provides a subsidy of Rs 1,600 to state-owned fuel retailers for every free LPG gas connection that they give to poor households.

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Finance Minister Piyush Goyal has announced that the government aims to provide free LPG gas connections to 8 crore families under the Ujjwala scheme by 2020, having provided 6 crore such connections under the scheme till date.

The scheme, which began in 2016, first aimed to give gas connections to 5 crore families. At the Budget speech given by the then Finance Minister Arun Jaitley in 2018, the target of beneficiaries under the Ujjwala scheme was raised to 8 crore families by 2021.

In January 2019, Vice President M Venkaiah Naidu said the scheme has led to LPG coverage rising to almost 90 percent of the population, up from 55 percent in May 2014

Under the scheme, the government provides a subsidy of Rs 1,600 to state-owned fuel retailers for every free LPG gas connection that they give to poor households. This subsidy is intended to cover the security fee for the cylinder and the fitting charges.

The beneficiary has to buy her own cooking stove. To reduce the burden, the scheme allows beneficiaries to pay for the stove and the first refill in monthly installments. However, the cost of all subsequent refills has to be borne by the beneficiary household.

The scheme originally targeted giving free LPG connections to mostly rural women members of below the poverty line (BPL) households. In December 2018, the government extended the ambit of the scheme to all poor households.

(with inputs from PTI)
First Published on Feb 1, 2019 11:51 am
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