New Delhi:

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the extension of a targeted subsidy of Rs 300 per 14.2 kg cylinder for up to 12 refills per year for the beneficiaries of Pradhan Mantri Ujjwala Yojana (PMUY) for the financial year 2024-25.

As of March 1, 2024, there are more than 10.27 crore PMUY beneficiaries. The total expenditure will be Rs 12,000 crore for the financial year 2024-25. The subsidy is credited directly to the bank accounts of the eligible beneficiaries, the Ministry of Petroleum and Natural Gas said in a statement.

To make liquefied petroleum gas (LPG), a clean cooking fuel, available to rural and deprived poor households, the government launched the Pradhan Mantri Ujjwala Yojana in May 2016, to provide deposit-free LPG connections to adult women of poor households, the statement said.

India imports about 60 per cent of its LPG requirements.

To shield PMUY beneficiaries from the impact of sharp fluctuations in international prices of LPG and to make LPG more affordable to PMUY consumers, thereby ensuring sustained usage of LPG by them, the government started a targeted subsidy of Rs 200/- per 14.2 kg cylinder for up to 12 refills per annum (and proportionately pro-rated for 5 kg connections) to the PMUY consumers in May 2022.

In October 2023, the government increased targeted subsidies to Rs 300 per 14.2 kg cylinder for up to 12 refills per annum (and proportionately pro-rated for 5 kg connections). As of February 1, 2024, the effective price of domestic LPG for PMUY consumers is Rs 603 per 14.2 kg LPG cylinder (Delhi).

The average LPG consumption of PMUY consumers has increased by 29 per cent from 3.01 refills in 2019-20 to 3.87 refills (till January 2024) prorated for 2023-24.

All PMUY beneficiaries are eligible for this targeted subsidy.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Union Health Minister Mansukh Mandaviya. File
| Photo Credit: ANI

Talking to reporters about his new book ‘Fertilising the Future: Bharat’s March Towards Fertiliser Self-Sufficiency’, Union Fertilizers Minister Manuskh Mandaviya said here on Wednesday that consistent steps taken by the Narendra Modi government are leading to decrease in fertilizer subsidies and self reliance in fertilizers production. He said the country has adequate stocks of fertilizers for the ongoing rabi and upcoming kharif seasons.

The Minister said the country has stocks of 70 lakh tonnes of urea, 20 lakh tonnes of Di Ammonium Phosphate, 10 lakh tonnes of Muriate of Potash, 40 lakh tonnes of nitrogen, phosphorus, and potassium and 20 lakh tonnes of single super phosphate at present. 

When asked about the subsidy, he said it is likely to come down and is estimated at around ₹1.7-1.8 lakh crore.

“Subsidy is expected to be lower this year because of fall in global prices. We have not increased retail prices to reduce subsidy,” he said.

He added that when the prices increased globally, the Centre increased subsidy to protect farmers interest and retail prices did not change. “The government’s fertiliser subsidy bill is likely to decline 30-34% to ₹ 1.7-1.8 lakh crore this fiscal due to fall in global prices and lower imports of urea,” Mr. Mandaviya added.

He said the domestic production of urea has increased as four urea plants have already been revived and the fifth is set to start production soon. Nano liquid urea and nano liquid DAP are being promoted by the Centre, he said adding that States are getting incentives to curb use of chemical fertilizers. “India has entered into long-term supply agreements with global suppliers for assured imports of fertilizers and its raw materials at pre-determined prices,” he said.

On the attacks against commercial vessels in Red Sea, he said it will not create any shortage of fertilizers in the country. “Ministry of External Affairs is making necessary interventions and our Navy is giving protection to Indian cargo vessels,” Mr. Mandaviya said.