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Cabinet likely to grant additional subsidy of Rs 200 under Ujjwala scheme: Sources

Cabinet likely to grant additional subsidy of Rs 200 under Ujjwala scheme: Sources

Earlier this year in March, the Committee on Economic Affairs (CCEA) approved a subsidy of Rs 200 per 14.2 kg cylinder for up to 12 refills per year to be provided to beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY).

The Ujjwala scheme was launched in 2016 to encourage poor households, particularly those in rural areas, to shift to LPG from conventional fuels. The Ujjwala scheme was launched in 2016 to encourage poor households, particularly those in rural areas, to shift to LPG from conventional fuels.

The Union Cabinet on Tuesday approved an additional subsidy under Ujjwala scheme. The additional subsidy has been pegged at Rs 200. After the new development, domestic LPG prices could be reduced by Rs 200 per cylinder.

Earlier this year in March, the Committee on Economic Affairs (CCEA) approved a subsidy of Rs 200 per 14.2 kg cylinder for up to 12 refills per year to be provided to beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY). 

Under the Ujjwala scheme, the Centre offers subsidies to the beneficiaries, who pay market price for LPG refills and receive cash subsidies in their bank accounts. As of March 1, there were 9.59 crore Ujjwala beneficiaries in the country. 

In May last year, the government announced a subsidy of Rs 200 per cylinder for Ujjwala beneficiaries as part of its efforts to cushion the impact of high energy prices in the aftermath of Russia’s invasion of Ukraine. For 2022-23, the government’s outgo for this subsidy is pegged at Rs 6,100 crore.

(More details awaited)

Published on: Aug 29, 2023, 2:58 PM IST
Posted by: Basudha Das, Aug 29, 2023, 2:53 PM IST