Ujjwala Yojana: OMCs Announced Deferment Of Loan Recovery Up To 6 Refills

70% Ujjwala beneficiaries purchase refills at the market price until their loan is paid back. Paying the market price for the initial few refills is an additional hurdle that was coming in the way of their shift towards cleaner fuel, resulting in periodic slips back to biomass.

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Ujjwala Yojana: OMCs Announced Deferment Of Loan Recovery Up To 6 Refills

In an attempt to boost domestic cooking gas consumption under the Pradhan Mantri Ujjwala Yojana (PMUY), or Ujjwala scheme, state-owned oil marketing companies (OMCs) on Friday announced deferment of loan recovery up to six refills.

Under the Ujjwala scheme a key welfare programme of the centre for poor women many availing an equated monthly instalment (EMI) facility for meeting the cost of the stove and first refills were paying market price for refills till the loan repayment was made. This was resulting in some consumers becoming averse to such refills.

Read Also: Pradhan Mantri Ujjwala Scheme Benefits, PMUY Eligibility Criteria

As per the data available, about 70% of the PMUY customers have availed interest-free loan facility provided by OMCs towards financing LPG stove and/or first LPG cost. Under the scheme, OMCs are recovering the subsidy amount provided on subsequent refills from beneficiaries who have taken the loan and adjusting the same towards the repayment of the loan, state-run Indian Oil Corp. Ltd said in a statement.

Hence, 70% Ujjwala beneficiaries purchase refills at the market price until their loan is paid back. Paying the market price for the initial few refills is an additional hurdle that was coming in the way of their shift towards cleaner fuel, resulting in periodic slips back to biomass.

Read Also: LPG Vitarak Chayan, LPG Distributorship Eligibility Criteria, Application

Under the scheme, the government aims to provide cooking gas to poor households and has covered 713 districts.

Ujjwala scheme provides financial support of Rs1,600 for each cooking gas connection to eligible households. The connections are given in the name of the women heads of the households.

Keeping in line with the spirit of PMUY scheme and the country’s goal to achieving universal LPG penetration by 2022, OMCs have announced to defer recovery of the loan amount from Ujjwala beneficiaries for next six refills starting from 1 April 2018, the statement said.

Source Link- https://www.livemint.com/.

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