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04 May 2016 K2_CATEGORY IAS Blog

Pradhan Mantri Ujjwala Yojana: An initiative of NDA government to curb poverty

Prime Minister Narendra Modi has launched the Pradhan Mantri Ujjwala Yojana in Uttar Pradesh’s Ballia district which will benefit 5 crore families till 2019. PM Modi said that the cooking gas scheme will immensely benefit the people belonging to lower strata of society.

The scheme aims at providing 5 crore free cooking (LPG) connections to below-poverty-line families over the next three years.The yogna will pare down the cost for each family, uplift the living standard and better the health of women as well. Modi said that the subsidy transfer will take place in the Jan Dhan account of the family's woman head.

So how does the Pradhan Mantri Ujjwala Yojana work and what are its benefits?

Government claims that providing LPG connections to BPL households will ensure universal coverage of cooking gas in the country. This measure will strengthen women and protect their health. It will bring down the time spent on cooking and plodding. The scheme will also generate employment for the rural youth in the supply chain of cooking gas.

The scheme provides a financial assistance of Rs 1,600 for each LPG connection to the BPL households. State governments along with Union territories will engage in identification of eligible BPL families.

In his Budget 2016 speech, Finance Minister Arun Jaitely had announced to give deposit-free LPG connections to 1.5 crore women belonging to BPL families and also talked about budgetary provision of Rs 2000 crore for this scheme to succeed.

Part funding from 'Give It Up':

The fund for ambitious Rs 8000 crore scheme will be raised partly by the money saved from 1.13. crore cooking gas users who have voluntarily gave up their subsidies through PM’s ‘ Give it Up’ initiative. The campaign is believed to raise nearly Rs 5000 crore which will be used to give LPG connection to poor. Indeed, this scheme is a great initiative of NDA government and will bring about significant changes in the lives of poor people and catapult their living standard.

Introducing such schemes is the need of the hour and will certainly help people belonging to lower segment of society get the better of their miseries. In developing economies, such kind of initiatives which aim to curb economic disparities in the society,foster the growth of healthy society.

Uttar Pradesh, Karnataka, Delhi, Maharashtra and Tamil Nadu — accounted for roughly half the people who have given up the LPG subsidy.