Ujjawala Scheme: Indian Oil, Others Defer Loan Recovery Up To 6 LPG Refills

Ujjawala Scheme: Indian Oil, Others Defer Loan Recovery Up To 6 LPG Refills

In an attempt to boost domestic cooking gas consumption under the marque Pradhan Mantri Ujjwala Yojana (PMUY), or Ujjwala scheme, state-owned oil marketing companies (OMCs) on Friday announced deferment of loan recovery up to six refills.

Under the Ujjwala scheme—a key welfare programme of the centre for poor women—many availing an equated monthly instalment (EMI) facility for meeting the cost of stove and first refills were paying market price for refills till the loan repayment was made.

This was resulting in some consumers becoming averse to such refills.

“As per the data available, about 70% of the PMUY customers have availed interest-free loan facility provided by OMCs towards financing LPG stove and/or first LPG cost. Under the scheme, OMCs are recovering the subsidy amount provided on subsequent refills from beneficiaries who have taken loan and adjusting the same towards the repayment of the loan,” state-run Indian Oil Corp. Ltd said in a statement on Friday.

PMUY, launched in 2016, aims to safeguard the health of women and children by providing them with LPG, so that they are protected from smoke while cooking or from having to go into unsafe areas to collect firewood.

“Hence, 70% Ujjwala beneficiaries purchase refills at market price until their loan is paid back. Paying the market price for the initial few refills is an additional hurdle that was coming in the way of their shift towards cleaner fuel, resulting in periodic slips back to biomass,” the statement added.

Under the scheme, the government aims to provide cooking gas to poor households and has covered 713 districts.  Read More

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