PAHAL & UJJWALA – Transforming Lives
When Dharmendra Pradhan took oath as Independent Charge of Ministry of Oil and Gas then the complete Ministry was in shambles creeping under Huge Debt. After analysing the depth of pain and then under the guidance of Prime Minister Narendra Modi and Arun Jaitley He started reformation. We focus only on PAHAL and Ujjwala Yojana in this article, Let’s understand Mathematics.
PAHAL was first started in 2013 by Manmohan Singh but it failed in its pilot execution. This project was restarted by Dharmendra Pradhan on Nov 2014 in 54 district (11 states ) as pilot and Now it is running in whole Nation successfully.
We are using price of 2015 to understand total financial benefits
1. The assumption in the article is that the subsidy amount per cylinder for the months of February and March 2015 is Rs.161.81 (US$2.5) is not correct because the subsidy amount varies in accordance with the price of international crude oil. In recent months, given the sharp fall in prices of crude, subsidies on cooking gas cylinders have also been falling. However, the subsidy amount in the months of February and March 2015 was significantly higher, and not Rs.161.81. The subsidy amount was Rs. 218.18 (US$3.4) per cylinder in February 2015 and Rs. 239.18 (US$ 3.7) per cylinder in month of March 2015. Hence, If you want to take any amount as reference then We need to take average of it.
2. The nearly 23% reduction in the number of gas connections as a result of the nation-wide implementation of PAHAL indicates that over the years, about 40 million ineligible people had managed to get into the system (or set up connections in the names of non-existent beneficiaries), to access subsidies not intended for them.
3. If we calculate an average of the subsidy figures from 15th February to 31st March 2015, the figure is Rs. 232.18 (US$ 3.57) per cylinder. Therefore the total amount of savings as a result of PAHAL in the 54 pilot districts during the period of mid-February 2015 to 31st March 2015, is Rs.2,051 million (US$ 32 million). If we extrapolate this figure for the entire country, for the entire year, the potential savings will be 40 million (ghost connections) x Rs.232.18 x 12 months = Rs. 11 billion (US$ 1.72 billion). This has been the basis for the calculations and the subsequent announcements that have come from the government.
4. For the current year, even if we assume that the subsidy amount is going to be lower at the rate of Rs. 161.81 potential savings will be 40 million x 12 x 161.81 = Rs. 77.7 billion (US$ 1.2 billion) just by weeding out unintended beneficiaries.
5. DBTL has also enabled oil marketing companies to launch the highly successful “Give It Up” campaign, which has led to more than 3.5 million people voluntarily giving up their subsidies. This maybe the first initiative of its kind in the world. The amount thus saved is another substantial sum: 16 million x 12 x 161.18 = Rs. 31,065 million . The savings are used to provide LPG connections to those who are unable to afford cooking gas at full market price. These connections are even mapped one to one with each PAHAL Champion who has given it up.
After Government of India successfully implements Direct Benefit Transfer Program and PAHAL – Give It UP Program and observing Monumental Economical Gain. Government introduced Ujjwala Yojana to distribute 5 crore LPG Connections for free to family below poverty line in order to make India 100% LPG Gas Equipped.
Government gave Rs 8000 crore budgetary support to this program.
Pradhan Mantri Ujjwala Yojana is an ambitious social welfare scheme of Narendra Modi Government launched on 1st May 2016 from Ballia in Uttar Pradesh.
Current Status up to 17 Nov 2016 State wise :
State Number of Connections Released (Approx.)
Uttar Pradesh 34 Lakh
Madhya Pradesh 13 Lakh
Rajasthan 12 Lakh
Bihar 10.2 Lakh
West Bengal 7 Lakh
Gujarat 5 Lakh
Odisha 4.8 Lakh
Chhattisgarh 3 Lakh
Maharashtra 2.7 Lakh
Haryana 2 Lakh
Tamil Nadu 1.4 Lakh
Note : Total Distribution till December 2016 is 1.40 crore
By any parameter when you judge both of the program, you will find reflection of good policy, monitored execution and transparent delivery.
From Weeding out corruption, to delivering LPG to last person in queue without corruption in between, both this program will be always remembered.
We wish Government accomplish its target of 5 crore LPG distribution much before 2019. We wish life of people of India and specially poor gets better.