PM Ujjwala Yojana: Cabinet extends LPG cylinder subsidy by a year ahead of Lok Sabha election

The Indian government on Thursday, March 7, announced the extension of the ₹300 per LPG cylinder subsidy on cooking gas, under the Pradhan Mantri Ujjwala Yojana, by another year.

Union Minister Piyush Goyal confirmed the extension, stating that the Cabinet Committee on Economic Affairs has approved it until 2024-25. This move, expected to benefit nearly 10 crore families, will cost the government ₹12,000 crore, CNBC-TV18 had earlier reported.

Goyal emphasised the scheme's success in alleviating various challenges faced by women, noting that the Ujjwala scheme has reached a saturation level.

The decision timed ahead of International Women's Day, aims to address women's welfare by providing subsidised cylinders. Ujjwala beneficiaries in Delhi will receive cylinders priced at ₹603 after considering the ₹300 per cylinder subsidy.

Aside from a payout for new connections explained below, currently, the Indian government pays ₹300 for every liquified petroleum gas (LPG) cylinder to eligible buyers for up to a 12 refills in a year. The payout was increased from ₹100 a cylinder to ₹300 in October 2023.

The decision comes ahead of the election for the Lok Sabha, the lower house of the Indian Parliament, scheduled in the summer of 2024. The incumbent government under Prime Minister Narendra Modi would be seeking a third straight term in office.

The government transfers cash of ₹1600 for every new gas connection with a 14.2 kg cylinder to eligible candidates. The payout is ₹1150 for a 5 kg cylinder. This subsidy covers the following:

Security Deposit of Cylinder – ₹1250 for 14.2 kg cylinder or ₹800 for 5 kg cylinder

₹150 for the regulator

₹100 for the LPG hose

₹25 Domestic Gas Consumer Card

₹75 Inspection/installation/demonstration charges

An Adult woman who is 18 years or older and : 

Belongs to a Scheduled Caste, or a Scheduled Tribe, or to one of the Most Backward Classes, or she's a forest dweller

Who is eligble for the rural housing subsidies under Pradhan Mantri Awas Yojana (Gramin)

Who is eligible for food subsidies under Antyodaya Anna Yojana (AAY)

Who is from a tribe that works, or used to work, in tea gardens

Resides in islands and river islands

Belongs to one of the SECC Households (AHL TIN)

From a poor household as per the 14-point declaration