Union Cabinet Approves Rs 30,000 Crore To Three Public Sector Oil Marketing Companies

The Union Cabinet chaired by Prime Minister Narendra Modi has approved compensation amounting to Rs 30,000 crore to the three Public Sector Oil Marketing Companies. These companies include the IOCL, BPCL & HPCL. This compensation has been approved for the under-recoveries incurred on sale of domestic LPG according to a statement as reported in the Press Trust of India. The statement further added that this compensation will allow OMCs to continue meeting their critical requirements such as crude and LPG procurement. According to the statement, it will also allow the OMC’s to do the servicing of debt, and sustain their capital expenditure that will ensure uninterrupted supply of LPG cylinders to households across the country.

What is the Pradhan Mantri Ujjwala Yojana?

According to the official website of the Ministry of Petroleum and Natural Gas, in May 2016, the Ministry of Petroleum and Natural Gas (MOPNG), introduced the ‘Pradhan Mantri Ujjwala Yojana’ (PMUY). This was introduced as a flagship scheme with an objective to make clean cooking fuel such as LPG available to the rural and deprived households. These households were using traditional cooking fuels such as firewood, coal, cow-dung cakes etc. The usage of traditional cooking fuels had negative impacts on the health of rural women as well as on the environment. Prime Minister Narendra Modi had launched the Pradhan Mantri Ujjwala Yojana scheme on 1st May, 2016 in Ballia, Uttar Pradesh. 

What are the benefits of the Pradhan Mantri Ujjwala Yojana?

The beneficiaries are provided with cash assistance for the PMUY connections by Government of India. This cash assistance is Rs. 2200 (for a connection 14.2kg cylinder and Rs. 1300 for a 5 kg cylinder). This assistance covers the following aspects- 
1.    Security Deposit of Cylinder – Rs. 1850 for 14.2 kg cylinder/ Rs. 950 for 5 kg cylinder
2.    Pressure Regulator – Rs. 150
3.    LPG Hose – Rs. 100
4.    Domestic Gas Consumer Card – Rs. 25
5.    Inspection/ Installation/ Demonstration charges – Rs. 75

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