The Cabinet Committee on Economic Affairs, headed by Prime Minister Narendra Modi, has announced an extension of the subsidy of Rs 200 per LPG cylinder under the Pradhan Mantri Ujjwala Yojana (PMUY) for one year. The PMUY was launched in May 2016 by the Central government to provide deposit-free LPG connections to adult women of poor households and make LPG accessible to rural and impoverished households. The government credits the subsidy directly to the bank accounts of eligible beneficiaries.
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According to a government release, as of March 1, 2023, there are 9.59 crore PMUY beneficiaries. The subsidy has been extended to shield the beneficiaries from the rise in LPG prices, which have increased due to various geopolitical reasons. The release also stated that the targeted subsidy is available to all PMUY beneficiaries, and the average LPG consumption of PMUY consumers has risen by 20% from 3.01 refills in 2019-20 to 3.68 in 2021-22. The total expenditure for the subsidy in 2023-24 will be Rs 7,680 crore.
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