Performance Audit of Pradhan Mantri Ujjwala Yojana, Ministry of Petroleum and Natural Gas

Findings

1. By 31 March 2019, 7.19 crore connections had been issued — about 90 per cent of the eight crore target set for March 2020 — and all-India LPG coverage rose from 61.90 per cent in May 2016 to 94.30 per cent in April 2019.

   “As on 31 March 2019, Oil Marketing Companies (OMCs) had issued 7.19 crore LPG connections, which is approximately 90 per cent of the target of eight crore connections to be issued till March 2020. Out of 7.19 crore connections, 3.81 crore LPG connections were issued under PMUY and 3.38 crore were issued under E-PMUY in 36 States/Union Territories. All India LPG coverage also increased from 61.90 per cent in May 2016 to 94.30 per cent in April 2019.”Executive Summary

2. Sustained use was the scheme's weak point. The 1.93 crore consumers who had completed more than a year by March 2018 took an average of 3.66 refills a year, and for 3.18 crore consumers by December 2018 that fell to 3.21.

   “Encouraging the sustained usage of LPG remains a big challenge as the annual average refill consumption of 1.93 crore PMUY consumers (who have completed more than one year as on 31 March 2018) was only 3.66 refills as worked out by audit. Similar analysis for 3.18 crore PMUY beneficiaries as on 31 December 2018 revealed that refill consumption declined to 3.21 refills per annum.”Executive Summary

3. Of 3.78 crore connections, 1.60 crore — 42 per cent — were issued on the beneficiary's Aadhaar alone rather than on all adult family members', which the audit says defeated de-duplication.

   “In order to rule out existing LPG connection in beneficiaries' household, de-duplication was to be carried out on Aadhaar of all family members. Audit noticed that out of 3.78 crore LPG connections, 1.60 crore (42 per cent) connections were issued only on the basis of beneficiary Aadhaar which remained a deterrent in de-duplication.”Executive Summary

4. The scheme was for women, but 1.88 lakh connections were released against male household identification numbers because the distributor software had no validation check; 8.59 lakh went to people who were minors on the SECC-2011 data.

   “PMUY envisaged release of LPG connection in the name of woman. However, audit observed that due to lack of input validation check in Indian Oil Corporation Limited (IOCL) software, 1.88 lakh connections were released against AHL TIN of males… Lack of input validation check in IOCL software allowed issue of 0.80 lakh connections to beneficiaries aged below 18 years. Similarly, data analysis revealed that 8.59 lakh connections were released to beneficiaries who were minor as per SECC-2011 data which was in violation of PMUY guidelines and LPG Control Order, 2000.”Executive Summary

5. In field audit, the household identification numbers of 784 intended beneficiaries — 18 per cent of the 4,348 records checked — had been used by distributors to give the connection to someone else.

   “Data analysis revealed mismatch in name of 12.46 lakh beneficiaries between PMUY database and SECC-2011 data. Further, test check in field audit revealed that AHL TINs of 784 (18 per cent of 4348 KYCs verified) intended beneficiaries were used by LPG distributors to extend benefits to un-intended persons.”Executive Summary

6. Signs of diversion to commercial use appeared — 1.98 lakh beneficiaries averaged more than 12 cylinders a year, 13.96 lakh took 3 to 41 refills in a single month, and in 3.44 lakh instances two to 20 refills were issued in a day to a single-cylinder connection.

   “Risk of diversion of domestic cylinders for commercial use was noticed as 1.98 lakh PMUY beneficiaries had an average annual consumption of more than 12 cylinders which seems improbable in view of their BPL status. Similarly, 13.96 lakh beneficiaries consumed 3 to 41 refills in a month. Further, IOCL and Hindustan Petroleum Corporation Limited (HPCL) in 3.44 lakh instances issued 2 to 20 refills in a day to a PMUY beneficiary having single bottle cylinder connection.”Executive Summary

7. Low refill use by 0.92 crore consumers who had taken the optional stove-and-refill loan left ₹1,234.71 crore of it unrecovered, because repayment came out of the refill subsidy.

   “Low consumption of refills (up to three) by 0.92 crore loanee consumers (who had completed one year or more as on 31 December 2018) had hindered recovery of outstanding loan of ₹1234.71 crore.”Executive Summary

8. Safety compliance was patchy — of 18,558 records test-checked, pre-installation inspection reports were missing in 2,531 cases and installation certificates in 2,367 — and the beneficiary survey found stoves placed below cylinder level and non-standard hose pipes in use.

   “Departure from safety norms were noticed during test check of 18558 KYC records as pre-installation inspection report was not available in 2531 cases (13.64 per cent). Similarly, installation certificates were not available in 2367 cases (12.75 per cent).”Executive Summary

9. Only 92,005 beneficiaries — 0.24 per cent — got the 5 kg cylinder connection that the Expenditure Finance Committee and PPAC-CRISIL had both flagged as important, given that refill cost is the main barrier to use.

   “Expenditure Finance Committee (EFC) and Petroleum Planning and Analysis Cell (PPAC) -Credit Rating Information Services of India Limited (CRISIL) had highlighted the importance of small 5 Kg cylinders to make PMUY successful considering high refill cost as a barrier to LPG usage, however, inadequacy of efforts was noticed in this direction as only 92005 (0.24 per cent of 3.78 crore connections) beneficiaries were provided 5 Kg cylinder connections.”Executive Summary

Fact-checks citing this report

• ◑Lacks contextWe will transform the quality of life of women in Rural India by providing electricity, tapped water, cleaner fuel and toilets in every home.
• ◑Lacks contextEnsure the LPG gas cylinder connection to all poor rural households.