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…

Ujjwala scheme to get Rs 293-cr publicity push from BJP ad brain: Sources

Delhi-based US Advertising Agency to undertake Rs 293-crore campaign

Economy News: With the election season round the corner, public sector undertakings (PSUs) seem to be on an advertising spree. The biggest campaign valued at Rs 293 crore and tendered by Indian Oil Corporation (IOC), will be undertaken by Delhi-based US Advertising Agency.

The agency, on the website, says that the ruling BJP is among its top clients. The tender involves outdoor campaign that highlights the success of the Pradhan Mantri Ujjwala Yojana (PMUY).

According to sources, the IOC tender is considered to be huge for a single scheme since the total budget for campaigns run by the government’s Directorate of Advertising and Visual Publicity on an annual basis is only around Rs 150-200 crore. According to an industry source, other companies in the fray for the IOC tender were Mumbai-based Laqshya Media Group and Signpost India.

Under the tender, the winning agency would come up with outdoor campaigns in Karnataka, Gujarat and Odisha and Mumbai and Delhi along with 26 airports across the country. “We are being awarded the IOC contract. The government’s idea is that if you are performing on some parameters, it is your duty to inform the public. This campaign is to inform the public about the success of Ujjwala,” Amit Kapoor, managing director, US Advertising, 

The major clients of the firm, that was set up in 2000 and turned into a private limited company in August 2014, include Flipkart, Sony, Nissan, Hindustan Petroleum Corporation, Gail India and BP….

Contain Source ByBusiness Standard