Ujjwala leads to 40 mn new LPG connections with a jump of 45% in FY19

The rising number of Ujjwala customers is, however, increasing the government’s subsidy burden

Economy News: The push for clean energy through the Pradhan Mantri Ujjwala Yojana (PMUY) has led to a record 40.7 million new liquefied petroleum gas (LPG) connections being added in the current fiscal year (2018-19, or FY19). This is a jump of 45 per cent over 2017-18 (FY18). The three oil marketing companies — Indian Oil Corporation (IOC), Bharat Petroleum Corporation, and Hindustan Petroleum Corporation (HPCL) — have together set a target of adding 42.5 million customers by the end of March 31.

The rising number of Ujjwala Yojana customers is, however, increasing the government’s subsidy burden. The LPG subsidy during the first nine months of the current fiscal year has already crossed the last year’s mark by 23 per cent.

The government shelled out Rs 25,700-crore subsidy during April-December 2018, compared to Rs 20,880 crore during the whole of FY18. The Budget for 2019-20 had, however, provided only Rs 20,283 crore in the Revised Estimates for FY19. The government expects the LPG subsidy to rise 62 per cent to Rs 32,989 crore next year. A part of this is expected to be rolled over from the current year…