The Indian government plans to connect another 6mn low-income households in rural and backward areas to LPG under the second phase of its Pradhan Mantri Ujjwala Yojana (PMUY) scheme, adding to its target of 10mn households announced last year.
The announcement comes ahead of five state elections to be held this month. The ruling BJP party is under pressure in the key north Indian state of Uttar Pradesh. The government has provided most of its targeted 10mn low-income homes with access to the fuel — consisting of India's lowest caste, migrant families, tribal groups and rural poor — under PMUY 2.
The 6mn new connections will be provided this year, after which all households will have access to the fuel, according to petroleum minister of state Rameswar Teli.
Refill rates for PMUY households continue to be low because there are no subsidies for the poor — the current 900 rupee ($12) cost of a 14.2kg LPG bottle is equivalent to over four days of wages for low-income workers under a state-guaranteed rural employment programme. At such high prices, which will further increase after the polls, rural households use LPG sparingly, preferring cheap firewood and biomass in their kitchens.
Prime minister Narendra Modi launched PMUY 2 in Uttar Pradesh in August last year. The first phase of the PMUY scheme, launched in May 2016, reached about 80mn homes by September 2019 by providing a deposit-free LPG connection, as well as zero-interest loans for a stove and the first cylinder refill. Phase two also provides a free stove and a refill for new customers.
