Shaping the Future: How PM Ujjwala Yojana is Addressing India’s Energy Needs

India, with its large population and diverse socio-economic conditions, has long struggled to ensure clean and affordable energy access for all, especially in rural and impoverished areas. For years, communities in these regions have depended on traditional sources like firewood, cow dung, and kerosene, which pose health hazards and harm the environment. To tackle this issue, the Government of India introduced the Pradhan Mantri Ujjwala Yojana (PMUY) in May 2016. This initiative aims to provide Liquefied Petroleum Gas (LPG) connections to families living Below the Poverty Line (BPL), with a particular focus on women. PMUY represents a groundbreaking program addressing multiple facets of India's energy challenges, from improving health and empowering women to promoting economic and environmental sustainability.

Need for PMUY

Energy access has long been a challenge in India, particularly in rural areas where infrastructure development has lagged behind urban regions. As of 2016, around 40% of Indian households lacked access to clean cooking fuel, relying instead on traditional sources such as wood, cow dung, and crop waste for cooking. This dependence on traditional fuel had adverse effects on health and the environment. According to the World Health Organisation (WHO), indoor air pollution caused by the burning of solid fuels contributes to millions of premature deaths globally each year. In India, it was estimated that over 1.3 million people died annually, with women and children being overly affected due to their prolonged exposure while cooking.

Moreover, this reliance on biomass fuel placed a significant burden on rural women, who often spent hours collecting firewood and other fuel. This time-consuming and labour-intensive process limited their opportunities for productive tasks such as education, employment and economic contribution towards the country.

Launch of PMUY 

The Pradhan Mantri Ujjwala Yojana (PMUY) was introduced by Prime Minister Mr. Narendra Modi on May 1, 2016, in Ballia, Uttar Pradesh, to address the energy challenges faced by families living Below the Poverty Line (BPL). The scheme’s aim is to enhance access to clean energy, mitigate health risks from indoor air pollution and empower women by offering a safe, clean and efficient alternative to cooking fuel. During the launch of this scheme, the government set a target of releasing eight crore LPG connections to the underprivileged by March 2020. The Prime Minister met the target in September 2019 itself, reflecting the mass adoption by the population and the government’s effort to implement this scheme. 

The initial focus of PMUY was on states with the highest concentration of BPL families and low LPG penetration. These states included Uttar Pradesh, Bihar, West Bengal, Madhya Pradesh and Odisha. The scheme was designed to provide financial assistance of Rs. 1,600 (US$ 19.03) for each LPG connection, covering the cost of the cylinder, pressure regulator, hose and installation. The beneficiaries were also given the option of borrowing a loan to purchase a stove and the first refill, which they could repay over time. 

Implementation and expansion of PMUY 

The implementation was conducted in collaboration with the Ministry of Petroleum and Natural Gas (MoPNG), Oil Marketing Companies (OMCs), and state governments. A robust identification and verification process was put into place to ensure the benefits reached the intended audience. The Socio-Economic Caste Census (SECC) 2011 data was used to identify eligible BPL households, and the scheme was implemented in a phased manner to cover all the regions of the country. 

To facilitate the adoption of LPG connections, the government and OMCs launched extensive awareness campaigns highlighting the health, economic and environmental benefits of clean cooking fuel. These campaigns targeted rural women, educating them about the harmful effects of traditional fuel and the advantages of switching to LPG. The scheme was extended to cover more beneficiaries, including those from SC/ST communities, forest dwellers, and tea garden workers, among others. 

Eligibility criteria for PMUY 

Here are the criteria that any applicant must fulfil to be eligible to apply for the PMUY scheme: 

• The applicant must be a woman over the age of 18 and an Indian citizen.  
• She should come from a family living Below the Poverty Line, and no other member of the household should possess an LPG connection. 
• The family’s total monthly income must be within the limit set by the State or Union Territory Government. 
• The applicant’s name must appear in the SECC-2011 list and align with the information in the BPL database maintained by oil marketing companies. 
• The applicant must not be enrolled in any other similar government scheme. 

Additionally, the applicant is required to provide a set of documents that verify her BPL status, identity, and other relevant information. 

Impact of PMUY on India’s Energy Needs 

Source: Ministry of Petroleum and Natural Gas, TMT: Thousand metric tonne, TMTPA: Thousand Metric Tonnes Per Annum 

The PMUY has been an impactful scheme launched by the government, benefiting the under privileged in India. This is visible through the progress over the past decade. With the goal of substituting traditional fuel sources for cooking with LPG, the PMUY scheme has made considerable progress. Total LPG sales in India stood at 17,696 TMT in 2014-15 and has grown to 30,381 TMT, posting a growth rate of 72%. Similarly, domestic LPG sales have grown at 63% from 16,041 TMT in 2014-15 to 26,208 TMT in 2023-24. This naturally drove the rise in customers for LPG connections. Domestic customers more than doubled from 14.52 crore in 2014-15 to 32.42 crore in 2023-24, registering a growth rate of 123%. 

To fulfil the growing demand for LPG, the capacity of production and distribution has significantly increased. LPG bottling capacity has growth from 13,535 TMTPA in 2014-15 to 22,843 TMTPA in 2023-24, clocking a growth rate of 69%. Distribution capacity has also significantly increased. The total distributors of LPG cylinders have increased from 13,896 in 2014-15 to 25,481 in 2023-25, a rise of 83%. 

PMUY 2.0 

On August 10, 2021, Prime Minister Mr. Narendra Modi introduced Ujjwala 2.0 from Mahoba District in Uttar Pradesh, aimed at providing an additional one crore LPG connections to adult women from poor households under PMUY. This initiative comes with a budgetary support of Rs. 1,600 (US$ 19.03) per connection. Along with the current eligibility requirements, beneficiaries under Ujjwala 2.0 are also offered the following additional benefits: 

• Online application option available on the newly launched portal pmuy.gov.in.  
• Migrants can submit a self-declaration to confirm their family composition and provide proof of address. 
• First refill and stove are provided free of charge.  
• e-KYC is conducted using Aadhaar authentication. 

The target of releasing an additional one crore LPG connections under Ujjwala 2.0 was achieved in January 2022. Following this, an additional 60 lakh LPG connections under Ujjwala 2.0 was decided to be released. Furthermore, Oil Marketing Companies (OMCs) successfully met the goal of providing 1.6 crore LPG connections under Ujjwala 2.0 by December 2022. 

In response to the pending applications and increasing the demand for PMUY connections, the government approved the expansion of the scheme by authorising an additional 75 lakh deposit-free connections under the current Ujjwala 2.0 guidelines. In addition to support of Rs. 2200 (US$ 26.17)/connection, the new beneficiaries under the scheme were provided with the free first refill and stove. 

The future of PMUY 

As India continues to manage its energy needs, the future of PMUY will depend on the government’s ability to address the challenges outlined above and scale up the scheme to cover more households. Initiatives are already underway to enhance the sustainability of the scheme and ensure long-lasting benefits. 

• Promoting affordability 
  To make LPG refills affordable for BPL families, the government is exploring flexible payment plans and targeted subsidies for low-income households. These measures aim to reduce the financial burden on beneficiaries and encourage a sustained use of LPG as the primary cooking fuel. 
  To promote affordability, the union cabinet approved the continuation of targeted subsidy of Rs. 300 (US$ 3.57) per 14.2 kg cylinder (and proportionately pro-rated for 5 kg cylinders) for up to 12 refills per year to be provided to the beneficiaries of PMUY during FY25. The total expenditure borne by the government for this initiative would be Rs. 12,000 crore (US$ 1.43 billion) for FY25. 
• Expanding infrastructure 
  Efforts to expand LPG distribution infrastructure, particularly in remote areas, will be critical to the success of PMUY in the coming years. The government is working with OMCs and private sector partners to develop solutions for last mile deliveries, such as mobile LPG distribution units and decentralised storage facilities. 
• Spreading awareness through campaigns 
  Behavioural change initiatives will be crucial in addressing cultural resistance to LPG adoption. The government, in partnership with civil society organisations and local influencers, is actively promoting awareness of long-term health, environmental advantages of LPG, and the dangers linked to traditional cooking fuel. 
• Leveraging technology 
  ​​​​​​​Technology can significantly shape the future of the PMUY initiative. Digital platforms and mobile apps can simplify beneficiary identification, ensure efficient subsidy distribution, and increase transparency in the LPG supply chain. Furthermore, data analytics can monitor usage trends and pinpoint regions that may require further assistance. 

Conclusion 

The Pradhan Mantri Ujjwala Yojana (PMUY) has become the cornerstone of India’s initiative to provide clean and affordable energy to its most vulnerable citizens. By addressing indoor air pollution, women empowerment, environmental sustainability, and fostering economic growth, PMUY has made substantial progress in shaping the nation’s energy future. However, its long-term success hinges on the government's ability to tackle affordability, infrastructure and cultural acceptance. As India continues its journey towards energy security and meet its climate objectives, the PMUY serves as a model for other developing countries seeking to balance social welfare with environmental sustainability. With continued political commitment, innovative approaches, and active community involvement, PMUY has the potential to transform India’s energy landscape and improve the lives of millions who depend on clean and sustainable energy for a better future.