New Delhi – In a significant move ahead of Raksha Bandhan, the Union Cabinet, chaired by Prime Minister Narendra Modi, on Friday approved a ₹12,060 crore package for LPG subsidies under the Pradhan Mantri Ujjwala Yojana (PMUY). Additionally, ₹30,000 crore has been sanctioned to make cooking gas more affordable, and ₹42,000 crore approved for technical education institutions.
The subsidy aims to compensate state-owned oil marketing companies for losses incurred in selling LPG cylinders at prices lower than the market rate.
Launched in May 2016, the PMUY provides free LPG connections to adult women from economically weaker households. As of July 1, 2025, India has around 10.33 crore active PMUY connections.
According to an official statement, PMUY beneficiaries will continue to receive a targeted subsidy of ₹300 per 14.2 kg LPG cylinder (and proportionately for 5 kg cylinders) for up to nine refills a year in FY 2025–26, at a cost of ₹12,000 crore to the exchequer. India currently imports about 60% of its LPG requirements.
The Cabinet also approved the development of the 46-km Marakkanam–Puducherry highway into a four-lane road at a total capital cost of ₹2,157 crore.