Union Minister for Petroleum and Natural Gas Current Affairs - 2020

Seven Croreth LPG connection under PMUY Handed Over

The Union Minister for Petroleum and Natural Gas Dharmendra Pradhan handed over the Seven Croreth LPG connection under the Pradhan Mantri Ujjwala Yojana (PMUY). The PMUY was launched by the Prime Minister Narendra Modi on 1st May 2016 with an initial target of five crore LPG connections, which was later revised upward to eight crores connections.

Pradhan Mantri Ujjwala Yojana

Pradhan Mantri Ujjwala Yojana (PMUY) aims to safeguard the health of women & children by providing them with a clean cooking fuel – LPG, so that they don’t have to compromise their health in smoky kitchens or wander in unsafe areas collecting firewood. Under this scheme, LPG connections will be provided to BPL families with a support of Rs.1600 per connection. The connection is provided in the name of the adult women of the family. Further, an option is provided to provide a loan at zero interest to bear the cost of the cooking stove and first refill which has to be paid by the beneficiary.

Some of the significant achievements of the scheme are:

  • 7 crore LPG connections have been distributed over a span of 34 months. This comes down to around nearly 69 thousand connections are being released per day.
  • 82 per cent PMUY beneficiaries are going for refilling their cylinder and average refilling is about 6.5 cylinders per beneficiary.
  • About 42 per cent of the total beneficiaries belong to the SCs and STs.
  • World Health Organisation (WHO) has acknowledged the PMUY as ne of decisive interventions by the Indian government to address the indoor air pollution which accounts for nearly 10 lakh (1 million) deaths every year across India.

Intitailly the beneficiaries under the scheme were identified through socio economic caste census, now all the poor of the country are now eligible to get PMUY connection. Further to give a fillip to the scheme 6800 new distributorships were given to strengthen rural LPG supply chain.

Guidelines for setting up of Dealer Owned Dealer Operated CNG stations

On the Sidelines of the Petrotech 2019, the Union Minister for Petroleum and Natural Gas, Shri Dharmendra Pradhan released the guidelines for setting up of Dealer Owned Dealer Operated (DODO) CNG stations in India.

The City Gas Distribution (CGD) entities run by central public sector undertakings will execute these guidelines for the setting up of CNG stations on DODO model in the country.

New Guidelines

The features of these new guidelines are:

  • Initially, these guidelines would be implemented in over 150 districts of the country.
  • Entire plot owned by a private owner shall be developed exclusively for setting up of CNG station and allied commercial activities at the discretion of CGD entity.
  • The plot owner applicant desirous of setting up CNG station will have to enter into a long term agreement with CGD entity.
  • The CNG equipment (compressor/ cascade/ dispenser, etc.) will be installed and commissioned by CGD entity while adhering to all the statutory rules/guidelines related to fire and safety.
  • The dealer is required to arrange all the permissions to set up CNG Station including change of land use, necessary clearance, license, etc. at own expense and cost.
  • The dealer shall be paid commission by the concerned CGD entity as per the sales achieved based on the fixed dealer commission.

Objectives of the New Guidelines

The new guidelines will act as an advisory for bringing the uniform system in line with DODO policy which will further help in bringing hygiene and cleanliness in the environment.

The guidelines aim to encourage those with possession of land to join hands with CGD entities in their endeavour to provide clean fuel for the transport sector.

Together with reducing the cost of setting up CNG filling stations for CGD entities the guidelines will provide landowners and investors to become partners in this green drive.

The new guidelines are expected to give a fillip to the CNG business in the country as the easy availability of CNG across the country shall encourage more people to switch to eco-friendly and economical CNG.