Pradhan Mantri Ujjwala Yojana

The Chhattisgarh Experience

Shiv Anant Tayal

Deputy Secretary

Department of Food and Civil Supplies

Government of Chhattisgarh

Background

Total Households 45 lakhs

Eligible as per SECC 2011 35 lakh

Realistic Target (2016 to 2018) 25 lakh

LPG coverage in Chhattisgarh ~35%

Chhattisgarh Area 138,000 sq Km

Population 2.5 cr

Districts 27

Why Ujjwala?

Economics: 6 LPG cylinders per year for a family of 4 implies an annual expense of ~ Rs 2500/year or ~ Rs 8/day

Present cost of firewood (~Rs 10/day) and opportunity cost of labour far exceeds the cost of LPG

Health hazards posed by continuous exposure to smoke

Convenience and Time Optimisation

Low LPG penetration. Why?

Monetary - Upfront cost of ~ Rs 3000

Access - Absence of dealerships

Behavioral - Availability of firewood

Cost and Subsidy Model

To counter the problem of high upfront cost.

Centre gives a subsidy benefit of Rs 1600

Chhattisgarh state has covered the cost of first refill and stove

Fund pooling from DMF, CAMPA, Labour Dept.

Gap funding from state budget

Security deposit (empty cylinder) Rs 1250

Pressure Regulator Rs 150

Hose Pipe Rs 100

DGCC booklet Rs 25

Distributor cost Rs 75

Upfront subsidy given by Centre Rs 1600

First Refill (without subsidy) Rs 650

Double burner stove Rs 990

Cost borne by consumer Rs 200

Total STATE subsidy Rs 1440

Subsidy availed under DBT Rs 260

Total COST borne by consumer Rs (-) 60

Maximizing Access:

Durgam Kshetra Vitraks

4 categories of dealers: Shehri (Urban dealers for cities with 10

lakh + population), Rurban (for towns with < 10 lakh population

and 15 km radius), Grameen (Rural dealers with service area of

villages in 15 Km radius), and Durgam Kshetra Vitraks (for hilly,

forest, LWE affected, tribal or sparsely populated areas)

Dealerships awarded on roster basis, and are given by open

advertisement. DKVs can be exempted, and run by state

agencies

Agencies: Cooperative Societies, Women Self Help groups

Chhattisgarh: Phase I – 50 DKVs (approved), Phase II – 92 DKVs

(proposed)

Disparity in dealer presence

Bastar: 41 in 39 K sq Km

Density: 0.11/100 sq Km

Surguja: 51 in 29 K sq Km

Density: 0.18/100 sq Km

Raipur city: 1.27/100 sq Km

Focus on behavioural aspects

Behavioural change is hardest to achieve

Focus topic in speeches/ public interactions by leaders

Outreach on part of distributors

Incentivizing people’s groups; Cooperative dealerships

Women participation: Extension of Swachh Bharat Mission

Focus on kitchen shelf construction in Pradhan Mantri Awas

Yojana (Rural)

Balancing supply with demand

After successful implementation of Ujjwala: state will

have 40 lakh connections.

Assuming 6 cylinders a year for a family of 4, a

monthly capacity of refilling 20 lakh cylinders is

required.

4 Bottling plants already in operation.

3 more bottling plants proposed to meet the

demand.

Progress

State launch: 13 August 2016

Target for 2016-17: 10 lakh connections

Installed: 7.5 lakh connections

1.8-2 lakh connection installation per

month

Target for 2017-18: 15 lakh connections

Budgetary estimate for 2016-17: Rs 150 Cr

Budgetary estimate for 2017-18: Rs 225 Cr

Monitoring

Continuous monitoring: online

transparency, call and confirm, SMS

confirmations.

Thank You.