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Centres free LPG scheme to roll out on April 14 in TS | Published: 13th April 2018 | Posted Date: Friday 13th April 2018 06:20 PM

Indian Oil Corporation General Manager, LPG (AP & TS) J. Shivakumar and Executive Director, Telangana and Andhra Pradesh Rahul Bhardwaj (right) addressing the Press in Hyderabad on Thursday. 

Pradhan Mantri Ujjwala Yojana, a Central scheme to provide free cooking gas connections to below poverty line families, is all set to be launched in Telangana on April 14.

Union Minister of Petroleum and Natural Gas Dharmendra Pradhan will participate in the launch function at Suryapet, in which 1,000 connections are to be issued, according to Indian Oil Corporation Executive Director (Telangana and AP) Rahul Bhardwaj.

In the first year, the three public sector oil marketing companies — IOC, BPCL and HPCL — would be targeting to issue 2-3 lakh connections. Their estimate of the total demand for PMUY connections in Telangana, where LPG penetration is relatively high on account of the existing Deepam scheme operated by the State government is 20 lakh.


Many yet to be covered

At present, there were 94.36 lakh domestic LPG connections, Mr. Bhardwaj and IOC’s General Manager-LPG J. Sivakumar said at a press meet here on Thursday. On the potential for new connections under schemes such as PMUY and Deepam, they observed that with 60-70% of the rural households covered there was scope.

One of the key differentiating features of PMUY is the EMI option the companies offer to beneficiaries to acquire stove and first refill. The EMI would be deducted from the LPG subsidy amount credited to the bank accounts of the consumers. The first instalment would start from the supply of the 7th refill.

When PMUY was launched in the country, about two years ago from Ballia in Uttar Pradesh, the target envisaged was 5 crore connections with an allocation of ₹8,000 crore over three years from 2016-17. So far 3.54 crore connections had been released. Subsequently the target was enhanced to 8 crore connections and supported with an additional, ₹4,800 crore allocation.


Cash assistance

The revised target is to be achieved by 2020. Under the scheme, the Centre provides a cash assistance of ₹1,600 per connection (to the OMCs) towards the security deposit of the cylinder and pressure regulator as well as installation/demonstration charges (payable to distributor) and cost of issue of DGCC booklet (blue book).

As per revised PMUY guidelines, issued last month, the scheme has been extended to include all SC/ST households, beneficiaries of PMAY (Gramin) and Antyodaya Anna Yojana (AAY), forest dwellers, most-backward classes, tea and ex-tea garden tribes and people residing in islands and rivers.

The connections are issued in the name of woman of the BPL household. However, considering the safety aspects, the connections would be provided only to those living in ‘pucca’ houses.



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