CAG reports cylinder scam under Ujjwala scheme

The report released by Comptroller and Auditor General of India (CAG) noticed that the increase in the number of LPG connections is not commensurate with the average refill consumption.

New Delhi: The Comptroller and Auditor General of India (CAG) has observed an abnormal daily LPG refill consumption in its report on Pradhan Mantri Ujjwala Yojana (PMUY).

The report noticed that the increase in the number of LPG connections is not commensurate with the average refill consumption.

Higher monthly LPG refill consumptions

The audit analyzed the consumption pattern of PMUY beneficiaries on a monthly basis and observed that 13.96 lakh consumers in 20.12 lakh instances consumed 3 to 41 refills in a month since installation.

Out of 13.96 lakh consumers, 10.09 lakh consumers have taken refills in the above range only once and the remaining 3.87 lakh consumers have taken refills 2 to 23 times which suggests that these consumers are habitual in taking more than two refills in a month.

Abnormal daily LPG refill consumption

Audit further analyzed the refill transaction data of PMUY beneficiaries as well as the system put in place by the oil marketing companies (OMCs) for booking/issuance of refills and observed that BPCL has put in place an effective system driven mechanism for restriction on booking / delivery of more than one refill on the same day through data validation.

On the other hand, the software of Indian Oil Corporation Ltd. (IOCL) and Hindustan Petroleum Corporation Ltd. (HPCL) lacked such validation checks.

OMC wise instances of higher monthly consumption

Therefore, LPG distributors of IOCL and HPCL, in 3.44 lakh instances have issued 2 to 20 refills in a day to a single PMUY beneficiary having single bottle connection.

IOCL and HPCL in a reply on April 2019 said that LPG refill consumption of each household is independent of any quota restriction to govern the same on any single day.

“Each household’s family structure is different, eating and cooking habits varies; as a result, every household has its unique LPG consumption requirements. Therefore, there were no restrictions to prohibit the booking and delivery of more than one LPG cylinder per day” the reply mentioned.

The ambitious Ujjwala scheme was launched in the year 2016 with the aim of providing free LPG connections to households belonging to below the poverty line.