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Rising dropout rate in Pradhan Mantri Ujjwala Yojana a growing concern

As of November 2024, over 10.33 crore households have benefited from the scheme. However, recent data reveals a troubling trend

Published Dec 16, 2024 | 6:32 PMUpdated Dec 16, 2024 | 6:32 PM

LPG

A growing number of beneficiaries are failing to reap the full benefits of the Pradhan Mantri Ujjwala Yojana (PMUY), which is aimed at providing deposit-free LPG connections to women heads of poor households. 

As of November 2024, over 10.33 crore households have benefited from the scheme. However, recent data revealed that fewer beneficiaries are availing of its full benefits, raising questions about its long-term impact.

According to data presented in the Lok Sabha to an unstarred question by Shashi Tharoor, the percentage of beneficiaries who either took no refill or only one refill annually has steadily risen over the past three years.

 In the financial year 2021-22, approximately 25.02 percent of PMUY beneficiaries did not refill their cylinders or took just one refill. This figure increased to 28.55 percent in FY 2022-23 and reached 29.67 percent in FY 2023-24.

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Reasons for dropout

Experts attributed the drop in refill uptake to several factors, including high LPG prices, limited purchasing power of beneficiaries, and inadequate awareness or usage of the LPG connection. 

One key issue Tharoor highlighted was the absence of any governmental study or survey addressing the reasons behind this decline in usage. 

Despite the increasing number of beneficiaries, the government has not conducted any substantial research to understand why a significant portion of these households is unable to make full use of the LPG connections, even with subsidies, Tharoor said in an X post.

Lack of targeted support 

Moreover, Tharoor raised concerns about households struggling with the high gas cylinder prices, despite the subsidies provided under the scheme. The government has not disclosed any specific measures to assist such households or to reduce the financial burden they face due to the rising cost of LPG.

The government’s response to Tharoor’s questions acknowledged the complex nature of LPG consumption, which is influenced by various factors such as food habits, household size, cooking traditions, and the availability of alternative fuels. 

Despite the ongoing subsidy support, including ₹22,000 crore in compensation to Oil Marketing Companies (OMCs) to cover the under-recoveries from high international LPG prices, the data on refill patterns painted a concerning picture.

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Data breakdown of dropouts

Official figures for the past three financial years are telling. In FY 2021-22, out of 7.99 crore PMUY beneficiaries, 1.08 crore did not take any refill, and 1.18 crore took only one refill during the year.

 In FY 2022-23, of the 9.58 crore beneficiaries, 1.54 crore took only one refill, and 1.66 crore did the same in FY 2023-24, out of 10.33 crore total beneficiaries. 

These figures suggested a rising trend of PMUY recipients, who were either not utilising their LPG connection or using it only sparingly.

While the PMUY has successfully brought LPG connections to millions of households, the increasing dropout rate and limited refill uptake raise critical questions about the scheme’s sustainability and its ability to provide long-term relief to beneficiaries. 

(Edited by Ananya Rao).

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