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India
07 May 2017

Free LPG Connections: Centre to expand network with Rs. 30,000cr

The Centre is entailing a Rs. 30,000cr-investment for expanding LPG production and distribution network in the next three years.

It aims to provide clean cooking fuel to over 95% households and widen the coverage by giving a record number of connections.

Oil Minister Dharmendra Pradhan said they plan to raise the target of free LPG connections, but only after discussing with the Finance Ministry.

In context

Expansion of LPG production and distribution

What is PMUY?

Pradhan Mantri Ujjwala Yojana (PMUY) is a welfare program of the Indian Government launched on 1 May'16 by PM Narendra Modi. Its objective is to provide 50 million LPG connections to below-poverty-line families in three years; 20 million connections had been completed as of Apr'17.

07 May 2017

Free LPG Connections: Centre to expand network with Rs. 30,000cr

The Centre is entailing a Rs. 30,000cr-investment for expanding LPG production and distribution network in the next three years.

It aims to provide clean cooking fuel to over 95% households and widen the coverage by giving a record number of connections.

Oil Minister Dharmendra Pradhan said they plan to raise the target of free LPG connections, but only after discussing with the Finance Ministry.

Oil Minister Pradhan's statement

Pradhan stated: "To cater to the (LPG) demand, we envisage an investment of the order of Rs. 25,000-30,000cr in LPG infrastructure including import terminals, pipelines and bottling plants." He added demand for LPG in India registered a growth rate of over 10%.

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As many as 2.2 crore free connections to poor women

Network Coverage

As many as 2.2 crore free connections to poor women

Pradhan said his ministry plans to achieve near total coverage by 2019 and benefit at least 34% new households that have no access to LPG.

He said 3.45 crore LPG connections, including 2.2 crore free connections to poor women were given in the fiscal that ended 31 Mar'17.

Over 4,600 new LPG distributors, primarily in rural areas, were added in the last three years.

Priority given to districts with low LPG consumption

Pradhan said at least 5 crore women from poor households would be given free LPG connections by 2018-19. He said districts with LPG consumption below the national average of 61% of households will be given priority.

Scheme

38% of beneficiaries of PMUY were SC/ST

Oil Minister Dharmendra Pradhan said that about 38% of the beneficiaries of the Pradhan Mantri Ujjwala Yojana (PMUY) were from SC/ST category.

PMUY was implemented in a participatory mode involving beneficiaries, elected representatives, distinguished personalities, and local administration among others.

A differential communication strategy reportedly to popularize the PMUY scheme and educating the beneficiaries on safety norms through regional languages was carried out.

LPG connections to 26.87 crore customers by April 2019

Projections

LPG connections to 26.87 crore customers by April 2019

The LPG drive has reportedly expanded the customer base to 73% of households in Apr'17 from 62% in Apr'16.

The Oil Ministry expects the figure to go up to 83% in Apr'18.

According to the 2011 Census, there were about 24.7 crore households in India; the Ministry's projection is to provide LPG connections to 26.87 crore households by Apr'19.

Fuel Retailers

9.8% surge in LPG consumption in 2016-17

Fuel retailers Indian Oil, Bharat Petroleum, Hindustan Petroleum are planning to add 4,500 LPG distributors this fiscal to the existing 18,500 ones.

The state-owned companies would also add 47 new LPG bottling plants in the next two years to the existing 189.

Fresh investments in LPG infrastructure are being made based on a 9.8% surge in LPG consumption in 2016-17 to 21.5 million tons.

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