Greetings, Dear Readers! As a millennial trying to navigate the professional world, one thing I always seem to struggle with is expenses. Especially when it is about cooking gas and it’s hefty expense. But are you aware of the fact that the Indian government offers several schemes to help out those in need? Yes, it’s true, let’s take a peek into the world of LPG schemes and see how they’re making life easier for those who need it most, while also ensuring safety through LPG insurance policy.
LPG Schemes Buffet: Several Safety Nets
Think of a buffet, but instead of delicious food, it’s loaded with LPG schemes. Here’s an understanding of each of them
1. Pradhan Mantri Ujjwala Yojana (PMUY)
This scheme is a game changer altogether. Launched in the year 2016, PMUY is dedicated to women belonging below the poverty line families, helping them acquire LPG gas for cooking purposes. It aims to provide financial assistance to cover security deposit, stove charges, and also LPG refill costs. This scheme empowers women, promotes a cleaner cooking environment, and reduces health risks associated with traditional cooking methods. While PMUY itself isn’t an LPG insurance policy, few distributors offer these policies as an add-on purchase during connection registration. These policies provide financial assistance in case of LPG-related accidents, keeping the minds of families at ease.
Highlights:
- Dedicated to women below the poverty line
- Provides financial assistance – Rs 1600 for a 14.2 kg cylinder, and Rs 1150 for a 5 kg cylinder, both of which include, security deposit, pressure regulator, LPG hose, Domestic Gas consumer card, and demonstration charges.
- Promotes a cleaner cooking environment.
2. Pratyaksh Hanstantrit Labh (PAHAL)
Ever heard cases of people claiming their subsidy benefits disappeared? PAHAL is a one-stop solution to this very issue. PAHAL, also known as the Direct Benefit Transfer (DBT) scheme for LPG, aims to ensure transparency. Here’s how it works – the subsidy amount transfers directly to your bank account through electronic means after you buy a cylinder for the market price. This eliminates black marketing and leakage, making sure the benefit reaches those in need. The money saved from subsidies due to PAHAL’s efficiency can further support initiatives like providing LPG insurance policy to low-income families.
Highlights:
- Ensures transparency in LPG subsidy distribution
- The subsidy is transferred directly to the bank account
- Consumers have to perform the due diligence of Gas Aadhar Link
- Reduces black marketing and leakage.
3. Opting out of LPG Subsidy
Are you also someone, who finds comfort in helping out the people in need? If Yes, then this scheme is for you. Every cylinder in circulation has at least an amount of Rs 200 as a subsidy to it. This results in a huge subsidy burden on the government causing a significant detour from focusing on other developmental activities.
Under PAHAL, you have the option to voluntarily surrender your LPG subsidy. This frees up resources for the government to support those who truly need it, potentially allowing for wider coverage of LPG insurance policy for vulnerable households.
Highlights:
- Allows you to voluntarily surrender your LPG subsidy.
- Frees up resources to support those in need.
- Can contribute to wider coverage of LPG insurance policy for vulnerable families.
Also Read: Gas Aadhar Link: One-stop solution for an ease free connection
4. CSR Scheme for BPL Connections
Corporate Social Responsibility comes into the picture here. Companies that are looking to fulfill their social obligations, can take part in this scheme and provide LPG connections for families in need. Additionally including LPG insurance policy as a part of the package. This not only benefits these families but also encourages responsible corporate practices.
Highlights:
- Companies can provide LPG connections to BPL families through CSR.
- May include LPG insurance policies as part of the package.
- Benefits families and encourages responsible corporate practices.
Downside of CSR Scheme
Although this scheme seems like a good option, the consumers who opt for this scheme need to bear the following expenses:
- Installation or demonstration charges of the LPG connection.
- Administrative costs and charges of DGCC
- Cost of gas stove and LPG rubber tube at the time of releasing of new LPG connection
- Price of LPG in the new cylinder.
5. Regularising LPG Connections
Have you inherited an LPG connection from your grandmother, but haven’t been able to register it officially? Don’t worry, under this scheme, you can regularize such types of connections. Thereby ensuring, that you get to enjoy all the legal benefits including, enrolling for an LPG insurance policy offered by the distributor.
Highlights:
- Allows regularization of inherited or unregistered LPG connections.
- Ensures legal access to benefits like enrolling in LPG insurance policies.
Steps for Regularising LPG Connections:
- For connection transfers, written content is required from the registered customer for transfer purposes to the person with the equipment and subscription voucher number(SV).
- The distributor then verifies the documents submitted and settles the security deposit amount between the registered customer and the holder of the equipment.
- A new SV number will be issued to the holder of the equipment
- In case, if you do not have the necessary connection documents, a security deposit at the prevailing rate is charged.
- In case of the death of the SV holder, the beneficiary shall transfer the connection upon the issue of the Death Certificate and Legal Heir Certificate/NOC.
6. Public Liability Insurance for LPG Accidents
Accidents can happen at any time and LPG accidents are no exception. This scheme is separate from the individual LPG insurance policy. It aims at providing financial assistance in case of LPG accidents at home, ensuring peace of mind for families. PSU oil marketing companies behave as principles and take Insurance policies for LPG accidents including Third Party Insurance Cover.
Highlights:
- Provides financial assistance for LPG-related accidents (separate from individual policies).
- Offers additional safety net in case of mishaps.
- The distributor does not collect any premium for the insurance policies from the customer
- The claim amount is transferred through the Oil Company to the beneficiary.
- There are certain limits on the liability for compensation.
7. Portability of LPG Connections
We all know that moving houses can be stressful, but this isn’t the case with your LPG connection. Under this scheme, you can easily transfer your connection to a new distributor at your new location. With this privilege, you need not be frantic about looking for gas at your new house. Remember to inquire with your new distributor regarding the availability of an LPG insurance policy in your new area.
Highlights:
- Allows easy transfer of LPG connection to a new distributor in a new location.
- Ensures continual access to LPG without disruption.
- Check for LPG insurance policy availability with the new distributor.
Why do these schemes exist?
These schemes are not just about random acts of government kindness. They amount to some key challenges:
- Affordability: Even though LPG is a clean and convenient fuel, not all families can afford it. It significantly strains the budget of low-income families. Schemes like these, fill this gap by making it more accessible to the ones in need and allowing the addition of LPG insurance policy as well.
- Health Concerns: Using Kerosene and wood for cooking can severely expose families to harmful and toxic pollutants. LPG is a much cleaner and convenient fuel, that promotes a healthy cooking environment. Additionally, LPG insurance policies act as a safety net against accidents or mishaps caused by LPG.
- Gender Empowerment: PMUY focuses on providing connections to women from BPL households. This empowers them to take control of their kitchens and well-being. LPG insurance policies can offer an extra layer of security for these women and their families.
- Transparent and Efficient: Schemes such as PAHAL ensure subsidies reach the intended beneficiaries, eliminating corruption and making the system more efficient. This allows the government to allocate resources more effectively
Also Read:
Final Thoughts
So, that’s all about LPG schemes! I have to admit, that understanding all these schemes can feel like deciphering a recipe with a million ingredients. But, hopefully, this blog broke it down into bite-sized pieces.
Remember, even if you’re not directly benefiting from these schemes, spreading the word can be a huge help. Who knows, you might just be the reason your neighbor finally gets that safe and convenient LPG connection they deserve.