Schemes under Ministry of Petroleum and Natural

Pradhan Mantri Ujjwala Yojana

  1. Introduction
  2. Aim
  3. Key features
  4. Target
  5. Eligibility
  6. Objectives
  7. Ujjwala 2.0
  8. Analysis
  9. Way forward

Introduction

Pradhan Mantri Ujjwala Yojana Launched in May 2016.


Aim

To provide LPG (liquefied petroleum gas) connections to poor households.


Key features

  • A deposit-free LPG connection is given to eligible with financial assistance of Rs 1,600 per connection by the Centre.

Target

  • The scheme gained traction with its ambit being expanded to include 80 million poor families from the earlier target of 50 million families with an additional allocation of Rs. 4,800 crore.

Eligibility criteria

  • Applicant must a woman above the age of 18 and a citizen of India.
  • Applicant should belong to a BPL (Below Poverty Line) household.
  • No one in the applicant’s household should own an LPG connection.
  • The household income of the family, per month, must not exceed a certain limit as defined by the government of the Union Territories and State Government.
  • Applicant must not be a recipient of other similar schemes provided by the government.

Objectives

  • Empowering women and protecting their health.
  • Reducing the serious health hazards associated with cooking based on fossil fuel.
  • Reducing the number of deaths in India due to unclean cooking fuel.
  • Preventing young children from significant number of acute respiratory illnesses caused due to indoor air pollution by burning fossil fuel.

Pradhan Mantri Ujjwala Yojana

Under Ujjwala 2.0

  • Migrant workers would no longer have to struggle to get address proof documents to get the gas connections.
  • They workers would only be required to submit a self-declaration of their residential address to get the gas connection.

Parliamentary committee’s observations on performance of the PM Ujjwala Yojana.


Key observations:

  • The government in September, 2019 met the target of eight crore LPG connections under the Pradhan Mantri Ujjwala Yojana.
  • But, only three States have become kerosene-free.
  • These include- Haryana, Punjab and Andhra Pradesh.
  • Union Territories that have become kerosene-free are the Union Territories of Delhi, Chandigarh, Daman & Diu, Dadar & Nagar Haveli, Andaman & Nicobar Island and Puducherry.

Key issues and gaps highlighted by the Committee:

  • The scheme is no longer running.
  • The committee was upset at the closure of the scheme and said there was still a lot of ground to cover.
  • There are poor households in the general category in urban and semi-urban localities that also need to be covered.
  • Large segments of people in various States still depended on kerosene for cooking and household lighting.

What next?

  • The scheme should be extended to poor households in urban and semi-urban slum
  • There is need for achieving a higher LPG coverage of the population by providing connections to households that do not have LPG.

Despite government’s support for the promotion of clean cooking fuel, large people in India still rely on solid fuels.


Why?

  • Most people believe that food cooked on a chulha was healthier and tastier. In contrast, rotis cooked on gas cause indigestion.
  • They also believe cooking with solid fuels was healthy for the person cooking too: fumes purified the eyes because they caused tears, and in blowing into a traditional stove, a woman did kasrat (exercise).

What can policymakers do to achieve exclusive use of clean fuels in rural India?

Three strategies could work:

  • Communicating the harms of solid fuels and the benefits of cleaner fuels;
  •  reducing the cost of LPG cylinder refills in rural areas; and
  •  promoting gender equality within households, particularly in cooking and related tasks.

List of measures

  • A large anti-tobacco style campaign communicating that solid fuels harm respiratory health, may change these beliefs. Similarly, advertisements that food cooked on gas can be as tasty and healthy as food cooked on a chulha would be helpful.
  • Reducing LPG prices in rural areas, where residents are poorer and solid fuels are easier to access, would also help. One way is to build on the targeting experience of the National Food Security Act.
  • Current Ujjwala messaging, which focuses on the benefits of clean fuels for women, reinforces inequality. Advertisements showing that gas is so good that even men can cook with it will challenge both misinformation on LPG and gender inequalities in household tasks.

 

SATAT Initiative

  1. Introduction
  2. About the Scheme
  3. Working
  4. Benefits
  5. Biogas
  6. Way forward

Introduction

  • Indian Oil, NTPC and SDMC have signed an MoU to develop a waste-to-energy facility at Delhi’s Okhla landfill site using gasification technology.
  • This plant will process 17,500 tons per annum of Refuse Derived Fuel (RDF) produced from combustible components of municipal waste to generate syngas which shall in turn be used to generate electricity.
  • The venture would succeed as there is an existing model of providing offtake guarantee, under the SATAT scheme for compressed biogas production plants.

About SATAT initiative

  • The initiative is aimed at providing a Sustainable Alternative Towards Affordable Transportation (SATAT) as a developmental effort that would benefit both vehicle-users as well as farmers and entrepreneurs.
  • Compressed Bio-Gas plants are proposed to be set up mainly through independent entrepreneurs.
  • CBG produced at these plants will be transported through cascades of cylinders to the fuel station networks of OMCs for marketing as a green transport fuel alternative.
  • The entrepreneurs would be able to separately market the other by-products from these plants, including bio-manure, carbon-dioxide, etc., to enhance returns on investment.
  • It is planned to roll out 5,000 Compressed Bio-Gas plants across India in a phased manner.
  • This initiative is expected to generate direct employment for 75,000 people and produce 50 million tonnes of bio-manure for crops.

How it works?

  • CBG produced at these plants will be transported through cascades of cylinders to the fuel station networks of OMCs for marketing as a green transport fuel alternative.
  • The entrepreneurs would be able to separately market the other by-products from these plants, including bio-manure, carbon-dioxide, etc., to enhance returns on investment.
  • This initiative is expected to generate direct employment for 75,000 people and produce 50 million tonnes of bio-manure for crops.

Benefits

  1. Responsible waste management, reduction in carbon emissions and pollution.
  2. Additional revenue source for farmers.
  3. Boost to entrepreneurship, rural economy and employment.
  4. Support to national commitments in achieving climate change goals.
  5. Reduction in import of natural gas and crude oil.
  6. Buffer against crude oil/gas price fluctuations.

Background

Bio-gas is produced naturally through a process of anaerobic decomposition from waste / bio-mass sources like agriculture residue, cattle dung, sugarcane press mud, municipal solid waste, sewage treatment plant waste, etc. After purification, it is compressed and called CBG, which has pure methane content of over 95%.


What is Bio- Gas?

Bio-gas is produced naturally through a process of anaerobic decomposition from waste / bio-mass sources like agriculture residue, cattle dung, sugarcane press mud, municipal solid waste, sewage treatment plant waste, etc. After purification, it is compressed and called CBG, which has pure methane content of over 95%.


What is CBG?

  • Compressed Bio-Gas is exactly similar to the commercially available natural gas in its composition and energy potential.
  • With calorific value (~52,000 KJ/kg) and other properties similar to CNG, Compressed Bio-Gas can be used as an alternative, renewable automotive fuel.

SATAT Initiative


Way ahead

  • The potential for Compressed Bio-Gas production from various sources in India is estimated at about 62 million tonnes per annum.
  • Going forward, Compressed Bio-Gas networks can be integrated with city gas distribution (CGD) networks to boost supplies to domestic and retail users in existing and upcoming markets.
  • Besides retailing from OMC fuel stations, Compressed Bio-Gas can at a later date be injected into CGD pipelines too for efficient distribution and optimised access of a cleaner and more affordable fuel.

PAHAL’ scheme or Direct Benefit Transfer of LPG (DBTL) Scheme

  1. Introduction
  2. About the Scheme
  3. Modified scheme
  4. Giveitup campaign

Introduction

  • The Direct Benefit Transfer of LPG (DBTL) or PAHAL (Pratyaksh Hanstantrit Labh) scheme was earlier launched on June 1, 2013 and finally covered 291 districts.
  • It required the consumer to mandatorily have an Aadhaar number for availing LPG Subsidy.
  • The government has comprehensively reviewed the scheme and after examining the difficulties faced by the consumer substantively modified the scheme.
  • The modified scheme is being re-launched in 54 districts on 15.11.2014 in the 1st Phase and in the rest of the country on 1.1.2015.

Pratyaksh Hanstantrit Labh (PaHaL) Scheme

  • Aims to reduce diversion and eliminate duplicate or bogus LPG connections.
  • Under PaHaL, LPG cylinders are sold at market rates and entitled consumers get the subsidy directly into their bank accounts.

PAHAL’ scheme or Direct Benefit Transfer of LPG (DBTL) Scheme


Modified DBTL scheme

Options to receive LPG subsidy

Under the modified scheme, the LPG consumer can now receive subsidy in his bank account by two methods. Such a consumer will be called CTC (Cash Transfer Compliant) once he joins the scheme and is ready to receive subsidy in the bank account.

The two options are:

Option I (Primary) :

  • For joining the scheme, the consumers have to fill up a form available with distributors and also on www.mylpg.in.
  • The consumers need to provide their Aadhaar number to LPG distributor and to Bank.

Option II (Secondary) :

  • If LPG consumer does not have an Aadhaar number, then he can directly receive subsidy in his bank account without the use of Aadhaar number.
  • This option which has now been introduced in the modified scheme ensures that LPG subsidy is not denied to an LPG consumer on account of lack of Aadhaar number.
  • In this option, Either consumer can Present bank account information (bank account holder name /account number /IFSC code) to the LPG distributor for capture in LPG database OR Present LPG consumer information (17 digit LPG consumer ID) to his bank.
  • LPG consumers who do not wish to avail the LPG subsidy for LPG cylinders can simply choose to opt out of subsidy.
  • Over 12000 citizens have already voluntarily given up subsidy freeing up crores of subsidy amount for their less privileged brethren.
  • LPG Consumers who are already CTC prior to launch on modified DBTL
  • Domestic LPG Consumer who had already joined the earlier DBTL scheme by linking their Aadhaar to bank and LPG database don’t need to take fresh action for receiving subsidy as the subsidy will be transferred to their bank accounts via Aadhaar based on the previous seeding.
  • Such CTC consumers cannot exercise Option II above.

GiveItUp Campaign

  • Domestic LPG is heavily subsidized by the Government of India and every cylinder that we use in our kitchen carries a substantial subsidy.
  • This translates to a huge annual subsidy burden on the Government, draining precious resources which otherwise could have been used in developmental activities.
  • Subsidy on domestic LPG instead of being universal needs to meet the needs of the truly needy citizens.
  • Fortunately, many able and aware citizens are not in favor of subsidies and would rather pay the full price for the products and, thereby they also make a personal contribution towards nation-building.
  • There is a need to spread this message.
  • Accordingly, the Government has launched the ‘#GiveItUp’ campaign which is aimed at motivating LPG users who can afford to pay the market price for LPG to voluntarily surrender their LPG subsidy.