In India, LPG connections are concentrated in urban and semiurban areas, with most connections in middle class and upper middle-class households. Due to limited access to LPG, low-income households routinely use fossil fuels such as coal, kerosene, and timber as the key sources for cooking; however, these sources are largely associated with serious health hazards including indoor air pollution, which is responsible for causing acute respiratory illnesses, pulmonary and lung diseases.

According to the WHO, ~5 lakh deaths in India can be attributed to use of unclean cooking fuels, wherein a majority deaths were due to non-communicable diseases such as lung cancer and chronic obstructive pulmonary disease.

Through the PMUY scheme, the govt. aims to maximise the reach of LPG connections to low-income and below poverty line (BPL) households and thereby, reduce their reliance on fossil fuels. Apart from ensuring universal coverage of LPG connections in the country, this scheme also empowers women and their health by reducing drudgery and the time spent on cooking. It will help generate employment for rural youth in the supply chain management of cooking gas.

• BPL households, which do not have an LPG connection, can apply for a new connection.
• The applicant (a woman of the BPL household) needs to fill the ujjwala yojana form with details such as address, Jan Dhan, or other bank accounts and Aadhaar number.
  • Aadhaar number is mandatory and if in case, the Aadhaar number is not available, the applicant should separately apply for an Aadhaar number.
• Once the application is submitted, the LPG field officials will match the application against the SECC-2011 database to ascertain the applicant’s BPL status.
• After ascertaining the status, the field officer will enter the applicant’s details such as name and address into a dedicated oil marketing company (OMC) web portal.
• After fulfilment of these details, OMCs will conduct their due diligence for a new LPG connection and issue connections sequentially to eligible beneficiaries.
• The connection charges would be borne by the government.
• To cover the cost of cooking stove and the first refill, OMCs will provide an EMI option to the new applicant.
  • The EMI amount may be recovered from the subsidy amount on each refill.
• The scheme will cover all forms of distributorship and various sizes of cylinders such as 14.2 kgs and five kgs.
• The PMUY scheme has been extended to all hilly states, including the North Eastern states, which have been termed as ‘priority states’.

• Provide financial support of Rs. 1,600 (~US$ 19.20) for each LPG connection to the BPL households
• Offer interest-free loans to purchase stove and refill from oil marketing companies
• Govt. will bear the administrative cost of Rs. 1,600 (~US$ 19.20) for the connection, which includes a cylinder, pressure regulator, booklet, and safety hose

Initially, the scheme was targeted to issue 50 million LPG connections until March 2020. This number was later revised to 80 million households to accommodate new families under the updated identification criteria.

As of July 2019, 82.1 million KYC applications were cleared and 79.6 million connections were issued under the PMUY programme.

• In 2019, 78% PMUY beneficiaries refilled their cylinders
  • 63% beneficiaries who refilled their cylinders took four or more cylinders
• In 2019, the average consumption of PMUY beneficiaries was three LPG cylinders per annum
• Since its rollout, >317 million refills have been delivered to PMUY beneficiaries

Ujjwala Yojana 2.0

The Union budget for the year 2021-2022 included a provision for an extra one crore LPG connections under the PMUY scheme. These additional connections, known as Ujjwala 2.0, are intended to offer deposit-free LPG connections to low-income families previously ineligible for coverage under the initial phase of PMUY.

In addition to offering deposit-free LPG connections, Ujjwala 2.0 will supply the first refill and hotplate at no charge to beneficiaries. Moreover, the enrolment process will involve minimal paperwork. Under Ujjwala 2.0, migrants will not need to furnish ration cards or address proof; a self-declaration for both 'family declaration' and 'proof of address' will be adequate. This initiative aligns with the Prime Minister, Mr. Narendra Modi’s goal of ensuring universal access to LPG.

As of the latest update, additional allocation of 1.6 Crore LPG Connections under PMUY scheme with special facility to migrant households were made. Target number of connections under Ujjwala 2.0 was achieved during December 2022, thus taking overall connections under the scheme to 9.6 crore.

The Union Cabinet announced the extension of the Rs. 300 (US$ 3.59) subsidy per LPG cylinder under the Pradhan Mantri Ujjwala Yojana (PMUY) for up to 12 refills per year, benefiting approximately 10.27 crore beneficiaries. This extension, aimed at supporting households ahead of the general election, is expected to cost Rs. 12,000 crore (US$ 1.44 billion) and will continue until the end of the next financial year, as stated by Union Minister of Commerce and Industry, Mr. Piyush Goyal.

On September 25, 2024, LPG consumption among Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries rose to 4.2 refills per year, up from 3.95 in 2023-24, due to increased subsidies and moderated prices. As of September 1, 103.3 million PMUY connections have been established, improving LPG coverage to near saturation. The government aims to extend benefits to 103.5 million households by 2025-26, with total LPG subsidies in the current fiscal reaching Rs. 11,925.01 crore (US$ 1.43 billion).