Cabinet extends Ujjwala subsidies by 1 year, hikes dearness allowance

The government has extended the Rs 200 per cylinder subsidy given for the Pradhan Mantri Ujjwala Yojana by one more year. This will continue to benefit 96 million households, Union Minister of Information & Broadcasting Anurag Singh Thakur said on Friday. 

In May 2021, the Centre had announced the subsidy for 12 cylinders per year to 90 million beneficiaries for FY23.  Thakur said the government has decided to extend the subsidies to ease the burden of high cooking gas prices.

The total cost outlay for the Centre as a result will stand at Rs 13,780 crore, including Rs 6,100 crore in 2022-23 and Rs 7,680 crore in 2023-24.

The scheme was launched in 2016 to distribute LPG connections to women belonging to below poverty line families.

The government also announced higher dearness allowance for its over one crore employees, which has been raised 4 per cent to 42 per cent, up from 38 per cent of the basic pay or pension. It will be applied retrospectively from January 1, 2023.

The government gives DA to its employees and dearness relief to pensioners to compensate them for rising prices.

The government has also fixed the minimum support price of raw jute at Rs 5,050 per quintal for the 2023-24 season. This would ensure a return of 63.20 per cent over the all India weighted average cost of production, it said.