Latest news with #PMUjjwalaYojana
Hindustan Times
4 days ago
- Business
- Hindustan Times
Cabinet clears ₹42K-crore for LPG subsidies
New Delhi The Union cabinet on Friday approved ₹42,060 crore under two separate heads for supplying cheaper cooking gas to about 330 million Indian households, including 103.3 million poor families in the current financial year. Cabinet clears ₹ 42K-crore for LPG subsidies The cabinet, chaired by Prime Minister Narendra Modi approved ₹30,000 crore budgetary support to state-run oil marketing companies for providing subsidised cooking gas to the middle-class households (in the past) and ₹12,060 crore to continue supporting the beneficiaries of the Pradhan Mantri Ujjwala Yojana in FY26, information and broadcasting minister Ashwini Vaishnaw said. 'PM Ujjwala yojana is globally recognized as one of the biggest examples of inclusive growth,' he said, adding that the scheme involved a total expenditure of ₹52,000 crore till 2024-25 since it was launched by the Prime Minister in 2016. As approved on Friday, the scheme will provide targeted subsidy of ₹300 per 14.2 kg cylinder for up to nine refills per year to the beneficiaries in 2025-26. PMUY consumers would have the option to buy smaller cylinders of 5kg, with proportionately pro-rated subsidy. The other expenditure of ₹30,000 crore pertained to compensation to the three public sector oil marketing companies (OMCs) – Indian Oil Corporation (IOCL), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) -- to make up their revenue losses incurred on the sale of cooking gas (also called domestic LPG) to Indian households. 'The distribution of the compensation within the OMCs will be done by the ministry of petroleum and natural gas. The compensation will be paid in twelve tranches,' an official statement issued by the Cabinet said. Domestic LPG cylinders are supplied at regulated prices to consumers by the three public sector OMCs. The government insulates consumers from fluctuations in international LPG prices. As high international LPG rates were often not passed on to consumers, it led to significant losses for the three OMCs. 'Despite the losses, the public sector oil marketing companies have ensured continuous supplies of domestic LPG in the country at affordable prices,' the statement added. This compensation will allow the OMCs to continue meeting their critical requirements such as crude and LPG procurement, servicing of debt, and sustaining their capital expenditure, thereby ensuring uninterrupted supply of LPG cylinders to households across the country, it added. This step also underlines the Government's commitment to protect consumers from volatility in global energy markets while maintaining the financial health of these PSU OMCs. It also reaffirms the objective of ensuring the widespread availability of clean cooking fuel to all consumers of domestic LPG, including those under flagship schemes like PM Ujjwala Yojana (PMUY), the statement said. PMUY was launched in May 2016 with an objective to provide a LPG connection to adult women from poor households across the country. As on July 1, 2025, there are about 1103.3 million PMUY connections across the country, the statement said. India imports about 60% of its LPG requirement.
Mint
4 days ago
- Business
- Mint
Cabinet approves ₹30,000 crore LPG subsidy to OMCs to ensure affordable cooking gas for middle class: Ashwini Vaishnaw
The Union Cabinet chaired by Prime Minister Narendra Modi on Friday approved LPG subsidy to oil marketing companies (OMCs) amounting to ₹ 30,000 crore, Union I&B Minister Ashwini Vaishnaw said. The move has been taken to ensure affordable LPG for the middle class amid the current geopolitical situation, Vaishnaw said. 'To ensure that the LPG gas is affordable for the middle class, a subsidy of ₹ 30,000 cr has been present geopolitics, gas prices fluctuate and to take care of that, the subsidy is given,' he said in a briefing after the Cabinet meeting. The compensation will be paid in 12 tranches to state-owned OMCs including Indian Oil, Bharat Petroleum and Hindustan Petroleum, the Ministry of Petroleum said in a statement on Friday. It said that international LPG prices continue to remain high. 'However, to insulate consumers from fluctuations in international LPG prices, the increase in cost was not passed on to consumers of domestic LPG which led to significant losses for the three OMCs,' it said. The Cabinet further approved a ₹ 12,060 crore support for PM Ujjwala beneficiaries for FY 2025-26, a statement said. This will entail a subsidy of ₹ 300 per cylinder to eligible Ujjwala subscribers and will benefit 10.33 crore households and around 45 crore individuals across India. The Ujjwala Scheme was launched by PM Narendra Modi in 2016. The Cabinet's decision came days after US President Donald Trump doubled US tariffs on India to 50 per cent — the highest in the world — citing its continued purchase of Russian oil. PM Modi had earlier this week, without naming Trump, said that the government will do everything to defend its citizens even if it comes at a personal cost. 'This step also underlines the Government's commitment to protect consumers from volatility in global energy markets while maintaining the financial health of these PSU OMCs. It also reaffirms the objective of ensuring the widespread availability of clean cooking fuel to all consumers of domestic LPG, including those under flagship schemes like PM Ujjwala Yojana,' the petroleum ministry said in its statement.
Hindustan Times
4 days ago
- Business
- Hindustan Times
Cabinet approves ₹30,000 crore LPG subsidy to state-run oil companies
The Union Cabinet on Friday approved a ₹30,000 crore LPG subsidy for state-run oil marketing companies, Union I&B minister Ashwini Vaishnaw announced on Friday. Union Information Broadcasting Minister Ashwini Vaishnaw said, "In the current geopolitical situation, this subsidy will insulate middle-class families and will keep them unaffected." (Sansad TV/ANI Video Grab) The decision is meant to keep LPG prices affordable for the middle class, he added. He said, 'To make LPG affordable, ₹30,000 crore has been approved for subsidy in today's Cabinet meeting. In the current geopolitical situation, this subsidy will insulate middle-class families and will keep them unaffected..." Also Read: Bullet train on Mumbai-Ahmedabad to cut travel time to just 2 hrs soon: Vaishnaw According to the petroleum ministry, the amount will be paid in 12 parts to Indian Oil, Bharat Petroleum, and Hindustan Petroleum. The Ministry of Petroleum and Natural Gas will decide how the compensation is shared among the companies. The payment will be made in twelve instalments. Global LPG prices have stayed high since 2024–25. To protect consumers from price fluctuations, the companies absorbed heavy losses but continued supplying domestic LPG at affordable rates. According to the government, the compensation will help the companies meet key expenses such as crude and LPG procurement, debt servicing and capital spending, ensuring uninterrupted supply of LPG cylinders to households. Government said, 'This step also underlines the government's commitment to protect consumers from volatility in global energy markets while maintaining the financial health of these PSU OMCs.' ₹ 12,060 cr aid for PM Ujjwala Yojana beneficiaries The Cabinet also cleared ₹12,060 crore support for PM Ujjwala beneficiaries for 2025-26, a statement said. This includes a ₹300 subsidy per cylinder for eligible users and will cover 10.33 crore households, reaching about 45 crore people across India. PMUY, launched in 2016, was set up to give deposit-free LPG connections to adult women from poor households across India. As of 1 July 2025, there are around 10.33 crore PMUY connections in the country. In 2024-25, the total spending under the PM Ujjwala Yojana was ₹52,000 crore.
United News of India
4 days ago
- Business
- United News of India
Cabinet approves Rs 30,000 cr compensation to OMCs for losses in domestic LPG
New Delhi, Aug 8 (UNI) The Union Cabinet chaired by Prime Minister Narendra Modi today approved compensation amounting to Rs 30,000 crore to the three Public Sector Oil Marketing Companies (IOCL, BPCL and HPCL) for under-recoveries incurred on sale of domestic LPG. The distribution of the compensation within the OMCs will be done by the Ministry of Petroleum and Natural Gas. The compensation will be paid in twelve tranches, an official statement said. Domestic LPG Cylinders are supplied at regulated prices to consumers by the public sector Oil Marketing companies namely, IOCL, BPCL, HPCL. The international prices of LPG remained at high levels during 2024-25 and continue to remain high. However, to insulate consumers from fluctuations in international LPG prices, the increase in cost was not passed on to consumers of domestic LPG which led to significant losses for the three OMCs. Despite the losses, the Public Sector Oil Marketing Companies have ensured continuous supplies of domestic LPG in the country at affordable prices. This compensation will allow the OMCs to continue meeting their critical requirements such as crude and LPG procurement, servicing of debt, and sustaining their capital expenditure, thereby ensuring uninterrupted supply of LPG cylinders to households across the country. This step also underlines the Government's commitment to protect consumers from volatility in global energy markets while maintaining the financial health of these PSU OMCs. It also reaffirms the objective of ensuring the widespread availability of clean cooking fuel to all consumers of domestic LPG, including those under flagship schemes like PM Ujjwala Yojana. UNI RBE RN
The Hindu
4 days ago
- Business
- The Hindu
Cabinet approves ₹30,000 crore as compensation to OMCs for losses in domestic LPG
The Union Cabinet on Friday (August 8, 2025) approved a compensation of ₹30,000 crore to the three public sector Oil Marketing Companies for losses incurred on the sale of domestic LPG. The compensation will be paid in 12 tranches, Union Minister Ashwini Vaishnaw said at a media conference in New Delhi. This compensation will allow the OMCs to continue meeting their critical requirements such as crude and LPG procurement, servicing of debt, and sustaining their capital expenditure, thereby ensuring uninterrupted supply of LPG cylinders to households across the country, Mr. Vaishnaw said. The Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum will be receiving the compensation and the distribution will be done by the Ministry of Petroleum and Natural Gas. Cabinet approves ₹12,000 cr. under PM Ujjwala Yojana for FY26 Union Cabinet on Friday (August 8, 2025) approved a subsidy of ₹12,000 crore under the Pradhan Mantri Ujjwala Yojana (PMUY) for 2025-26, benefitting 10.33 crore households. PMUY was launched in May 2016, to provide free LPG connection to adult women from poor households across the country. As on July 1, there are about 10.33 crore PMUY connections in India. "The Union Cabinet chaired by the Prime Minister Narendra Modi, has approved the targeted subsidy of Rs 300 per 14.2 kg cylinder for up to 9 refills per year (and proportionately pro-rated for 5 kg cylinder) to the beneficiaries of Pradhan Mantri Ujjwala Yojana (PMUY) during FY 2025-26 at an expenditure of ₹12,000 crore," an official statement said. India imports about 60% of its LPG requirement. (With inputs from PTI)
