Indian Institute of Management Ahmedabad study lauds PMUY, credits excellent coordination

A study undertaken by the Indian Institute of Management, Ahmedabad, analysed the Pradhan Mantri Ujjwala Yojana (PMUY). It stated that it is one of the largest social intervention schemes executed anywhere in the world in a challenging environment.

Giving the scheme a thumbs up, the professors drew management lessons from the same to implement on similar largescale social interventions in future. However, taking a critical look at the issues that may crop up, the study has also recommended an impact assessment of the programme by a credible third party, apart from internal assessment indicating significant benefits of the same.

The study titled 'Lighting up lives through cooking gas and transforming society' by professor Samir Barua and Sobhesh Kumar Agarwal has credited the coordination between different agencies for the successful implementation of the same.

The government had attempted social transformation through a simple mechanism of providing cooking gas (LPG) to the marginalised sections of society. Targeting about 100 million households in India who still use dung-cakes, firewood, and coal as the primary fuel for cooking, the PMUY was conceived with the objective of replacing these traditional fuels with LPG which is a clean fuel.

The initial target of providing 50 million Below Poverty Line (BPL) families with LPG at the time of the launch of the scheme on May 1, 2016, was increased to 80 million by 2019-20, and as of January, 2018 over 30 million families had already been covered by the scheme.

The study found that the scale and speed of implementation were achieved through excellent coordination between the government system, the government-owned Oil Marketing Companies (OMCs) and the banking system.

Taking management lessons from the same, the study said, "The government system represented by officials from the central government, the state governments, and the village heads (sarpanchs) helped in identifying BPL beneficiaries and in mobilising people to canvass the idea of switching over to LPG from traditional fuels for cooking. The oil companies designed and created the robust logistics system needed for bottling and distribution of cooking gas. The banks provided the infrastructure needed for flow of funds, including flow and accounting of subsidies from the government."

Interestingly, the team looked at issues that might crop up in future and recommended that the government needs to provide subsidy to BPL families given if the crude and LPG prices in the international market increase. Increase in cost may result in these families going back to traditional fuel. Preventing such relapse will require the government to set aside more funds for energy subsidy. What policy choices should be made when faced with such a situation?

Indicating a great potential on solar energy, the study said, "Solar energy is becoming cheaper over time and India is blessed with sunny days throughout the year. It has the advantage of easy deployment to far-flung areas.

Could this become the alternative source of primary energy not too far into the future? If that were to happen, what should be the policy glide path for transition from LPG to solar energy for cooking?

The researchers also visited many villages across the country including Gujarat to interact with villagers to take their perspective.

AIM OF SCHEME

Targeting about 100 million households in India who still use dung-cakes, firewood, and coal as the primary fuel for cooking, PMUY was conceived with the objective of replacing these traditional fuels with LPG which is a clean fuel.