MOCs postpone recovery of loan amount from Ujjwala beneficiaries for the next 6 recharges, Energy News, ET EnergyWorld
Under Pradhan Mantri Ujjwala Yojana (PMUY), the total cost of a family below the poverty line (BPL) of a new LPG connection, including installation, one-time administrative costs and the security deposit, is supported by the government.
Subsequently, a PMUY beneficiary has the option of prepaying for the purchase of the stove and the LPG cylinder or may benefit from a loan from the WTO to pay for the same. If the beneficiary makes use of a loan, the cost of the stove or the LPG cylinder or both is recovered on the basis of the EMI by the MOCs from the amount of the grant due to the beneficiary on the purchase of each recharge.
Now, the CMOs will not start collecting the loan amount until after the sixth refill, Indian Oil Corporation (IOC), the country’s largest fuel retailer, said today.
âAccording to the available data, around 70% of PMUY clients have benefited from an interest-free loan facility provided by the CMOs to finance the LPG stove and / or the first cost of LPG. Under this program, CMOs recover the amount of the grant provided on subsequent renewals from beneficiaries who have taken out a loan and adjust it for loan repayment. Therefore, 70 percent of Ujjwala beneficiaries buy refills at market price until their loan is repaid, âsaid the IOC.
Petroleum Minister Dharmendra Pradhan informed Rajya Sabha this month that the WTO had released over 3.45 crore of LPG connections in March 2018. In addition, the government has increased the target of issuing LPG connections. at 8 crore from 5 crore until 2020.
“In line with the spirit of the PMUY program and the country’s goal of achieving universal LPG penetration by 2022, the Petroleum Marketing Companies (OMC) today announced the postponement of the recovery of the amount of LPG. loan from Ujjwala beneficiaries for the next 6 recharges from April 1, 2018., “
According to the IOC, the scheme will also apply to all existing PMUY beneficiaries who have taken out a loan for a stove or a first cylinder of LPG or both from the WTO. Also, all PMUY customers who have outstanding credit at March 31, 2018 will benefit from a deferred recovery of the outstanding amount until the sixth LPG refill.
Pradhan also informed the upper house that the average per capita consumption of PMUY beneficiaries who have completed one year from the date of release of the connections is around 4.32 cylinders.