Syllabus: Current affairs
Subject: Schemes
Topic: Pradhan Mantri Ujjwala Yojana(PMUY)
Issue: LPG for India’s clean energy transition
Pradhan Mantri Ujjwala Yojana (PMUY):
- To provide LPG access to an additional 10 million low-income households.
- one-time subsidies for a cooking stove and gas refill.
- Led to decrease in rural household use of biomass for cooking.
- evolution of LPG subsidy : from universal to no subsidy to Direct Benefit Transfer (DBT) under PAHAL scheme.
Reasons for the low refill of LPG cylinders:
- Paying full price upfront (DBT credited into account later).
- Ill information to households about the timing and logistics of receiving subsidy transfers.
- Credit constrain: PMUY consumers mostly earn their living on a daily or weekly basis.
Suggestions :
- A substantive targeted and upfront subsidy
- Shift to an on-time subsidy transfer without leakage by:
- Electronic payment of subsidy amount to the dealer/deliveryman at the point of refill purchase by PMUY consumer.
- Use digital rupee (e-RUPI)
| +1 Advantage for Mains ( Case study)
PM Gareeb Kalyan Yojana offered three free cylinders to PMUY beneficiary o   this led to not only increase in consumption. o   and habit formation for some time. Prelims connect: PAHAL (Pratyaksh Hanstantrit Labh) or Direct benefit Transfer for LPG (DBTL): o   Aimed at rationalizing subsidies. o   To arrest subsidy leakages. o   Applicable subsidy is directly transferred to the bank accounts of the beneficiaries. |
