Hindustan Times ST (Mumbai)

Ujjwala mission: A work in progress

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out. That gives a figure of 38 million women having obtained LPG connection­s and we are also told the target has been increased from 50 million to 80 million. In addition, there is a performanc­e dashboard at mygov.in and since it is real time, it is more current than the first document. The dashboard shows a figure of 41 million.

Is something like the PMUY a good idea? I haven’t met anyone who has said it is a bad idea. Is there any duplicity (perhaps I should have written multiplici­ty) and double counting in the numbers? Because of several diligence checks used, I haven’t met anyone who has claimed that. Hence, half-full versus halfempty. Those who want to fill the glass look upon it as half-full and those who want to empty the glass look upon it as half-empty. Perception is coloured by the lens one wears.

It is also a fact that improvemen­ts face the phenomenon of the bar being constantly raised. Therefore, there is a critique that argues the following. The PMUY is fine. However, having introduced the PMUY, you need to build on it. Despite getting a LPG connection, people don’t refill cylinders. Why don’t they? Bordering on the speculativ­e, one can hypothesis­e.

Even when subsidised, LPG costs are high. Firewood is cheaper and negative externalit­ies associated with firewood not appreciate­d enough.

The market wants smaller cylinders (5 kg), but distributo­rs only supply larger ones (14.2 kg). Rs 1,600 still means losses for oil marketing companies and without refills, distributo­rs suffer losses.

Despite such elements of a critique, it is not obvious what the policy deductions are. Is there an argument for increasing subsidy on subsidised LPG cylinder further? Is it an argument for increasing the fixed cost subsidy beyond Rs 1,600? Is there a case for tweaking EMI provisions? (I haven’t gone into these details.) Or is this simply a case of markets reacting with a time lag?

Oddly enough, not too many people in metro India seem to know that April 20 is celebrated as Ujjwala Diwas, a part of Gram Swaraj Abhiyan (GSA).

Indeed, many don’t seem to know about the GSA. Full for rural may mean empty for metro.

Bibek Debroy is chairman of Economic Advisory Council to the Prime Minister and a member of Niti Aayog The views expressed are personal

 ?? HIT ?? According to the 2011 Census, the use of cooking gas in rural households rose from 5.7% to 11.4% from 2001
HIT According to the 2011 Census, the use of cooking gas in rural households rose from 5.7% to 11.4% from 2001

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