The deferment of loan recovery, upto to six refills would be implemented as per the guidelines. The scheme would be applicable for all the existing PMUY LPG connections who have availed loan for stove or first LPG cost from the OMCs.

 

All PMUY customers who have outstanding loan, as on March 31, 2018, will have a deferred recovery of the outstanding amount up to six LPG refills. Besides, all new consumers who will be enrolled after April 01 will also have a deferred recovery of the outstanding loan amount.

 

The loan deferment scheme, along with other OMC initiatives such as PM LPG Panchayats (peer learning platforms to support behavior change in Ujjwala beneficiaries) will boost the LPG refill consumption by PMUY customers and facilitate usage of cleaner fuel. It would provide a big push to the country’s progress towards sustainable development goals.

 

About 70 percent of the PMUY customers have availed interest free loan facility provided by OMCs towards financing LPG stove and/or first LPG cost. Under the scheme, OMCs are recovering the subsidy amount provided on subsequent refills from beneficiaries who have taken loan and adjusting the same towards the repayment of the loan. Hence 70 percent Ujjwala beneficiaries purchase refills at market price until their loan is paid back. Paying the market price for the initial few refills is an additional hurdle that was coming in the way of their shift towards cleaner fuel.