Recalibrating India’s Clean-Cooking Strategy: Moving Beyond LPG Subsidies : Daily News Analysis

Date : 02/08/2023

Relevance: GS Paper 3 - Clean Energy

Keywords: Pradhan Mantri Ujjwala Yojana, COVID-19, Traditional chulhas , Liquefied petroleum gas (LPG), Solar cooking

Context-

India's efforts to promote clean cooking solutions have seen significant progress, particularly with the adoption of liquefied petroleum gas (LPG) in urban households. The success of the Grameen Vitrak Yojana and Pradhan Mantri Ujjwala Yojana (PMUY) has led to near-universal coverage of LPG in rural and poorer households.
However, recent challenges, such as the COVID-19 pandemic and volatile international crude prices, have led to a decline in LPG consumption. In the last financial year, 90 lakh beneficiaries did not refill their cylinders, and over 1 crore beneficiaries refilled their cylinders only once. Despite the provision of free refills during the COVID-19 pandemic, the LPG consumption under the Ujjwala Yojana remains at 3.66 refills per connection annually.
To ensure sustainable clean cooking practices, India must explore a diverse range of clean-cooking technologies and shift away from a sole reliance on LPG.

The LPG Story and Challenges

Over the last 15 years, the Indian government has made remarkable efforts to promote LPG adoption in households. The share of Indian households using LPG as the primary cooking fuel increased from 33% in 2011 to 71% in 2020.
However, recent global events, including the COVID-19 pandemic and the Russian invasion of Ukraine, have posed challenges to sustaining LPG consumption in Indian households.
In 2020, the LPG subsidy was withdrawn for all consumers, and while three free cylinders were provided to all PMUY consumers in FY21, only a portion of the available free cylinders were consumed.
Reinstating a nominal subsidy of ₹200 per cylinder for PMUY consumers in FY23 helped improve refill rates, but the dependence on imported LPG has steadily increased to over 64% in FY23, and LPG prices have doubled since May 2020. With uncertain international prices and budget constraints, continuing the LPG subsidy at previous levels is unlikely.

PM Ujjwala Scheme:

Initially launched in 2016 with a target of releasing 8 crore connections by March 2020, the PMUY aimed to provide LPG connections to 5 crore women from BPL households. It was later expanded to include women beneficiaries from seven more categories, and the target was revised to 8 crore connections. Over 9 crores of connections have been released so far, and PMUY 2.0, launched in 2021, provisioned an additional one crore deposit-free LPG connections for low-income families. Government has also fixed a target of providing piped gas to 21 lakh homes in 50 districts.
The PM Ujjwala Yojana addresses several key objectives, including reducing health hazards associated with cooking using fossil fuels, empowering women by sparing them from collecting firewood, promoting socio-economic benefits through productive activities, and contributing to environmental conservation by reducing pollution.
The scheme faces challenges related to the high initial cost of refills, administrative concerns such as data discrepancies in Aadhar, logistics issues in rural areas, and behavioural challenges where people still use wood to save costs despite having LPG connections.

Diversity in Clean Cooking Solutions

To overcome the challenges posed by LPG subsidies and price volatility, India's clean-cooking policy must embrace a diverse range of clean-cooking technologies, moving beyond a sole reliance on LPG. Electric cooking, particularly induction cook-tops, can significantly offset the need for flame-based cooking.
A study by the Council on Energy, Environment, and Water (CEEW) found that even at a high tariff of ₹8 per unit of electricity, e-cooking would be cheaper than LPG cooking at current prices.
While there are concerns about the power distribution grid in rural India supporting all-electric cooking, nearly 10% of urban households already use electrical appliances for cooking. Urban households can serve as early adopters and pave the way for rural areas' transition to electric cooking.
Gradually increasing LPG prices beyond a threshold could encourage higher-use groups to switch to electric cooking, creating demand for new e-cooking technologies and spurring the domestic manufacturing ecosystem.

Other available cooking fuels

Modern and clean cooking fuels are fuels with very low levels of polluting emissions when burned. Examples include biogas, LPG, electricity, ethanol, natural gas, and solar power (BLEENS).

Biogas is produced in a biodigester. This is a closed, airtight container in which organic material like kitchen waste, cow dung, crop residues is fermented. This process produces biogas, a mixture of methane, carbon dioxide, and other trace gases. Using organic waste to make biogas leads to better waste management and a cleaner environment. It also contributes to climate change mitigation. Another benefit is the organic fertiliser that it produces. This improves soil health and increases agricultural yields, improving food security and nutrition.
Ethanol is a clean fuel produced from biomass sources. It is a renewable source of energy. Ethanol can be made from a variety of low-cost resources such as: sugar crops like sugarcane, sugar beet, sweet sorghum and fruits; starch crops like corn, wheat, rice, potatoes, cassava, sweet potatoes and barley; and lignocellulosic biomass such as wood, straw and grasses. These plant resources are fermented to produce ethanol. Although it is a renewable energy source, the resources needed for ethanol are not always sustainable. Using unsustainable resources can have a negative impact on the environment.
Solar cooking involves the use of a solar oven, which uses solar energy to cook, heat, or sterilize foods and drinks. A solar oven uses direct sunlight to heat foods. These devices may be simple and low-tech or very complex. Anywhere that gets direct sunlight is a potential place to use a solar cooker or solar oven. Solar cookers include ovens, panel cookers, and parabolic solar cookers.

Supporting the Transition: Financing and Business Models

To ensure a smooth transition to electric cooking, targeted support is necessary to assist manufacturers in adopting efficiency and designing solutions tailored to Indian households. Introducing innovative products, such as gas and electric cooktops in one device, can further boost adoption.
The displacement of traditional "chulhas" with electric cooking can also reduce climate pollutants. With the recent launch of the carbon market, India can monetize the avoided emissions and provide financing for poorer rural communities to adopt e-cooking.

Conclusion

India's clean-cooking strategy needs to go beyond LPG subsidies and explore a diverse range of clean-cooking technologies. Electric cooking, supported by targeted policies and innovative financing models, can provide a viable alternative to LPG and help achieve India's clean cooking and environmental goals. By embracing a bouquet of solutions, India can create a sustainable, resilient, and healthier future for its citizens. It would ensure a milestone to achieve in net zero and SDG-7.

Probable Questions for UPSC main exam-

Explain the challenges faced by the Pradhan Mantri Ujjwala Yojana (PMUY) and propose a diverse clean-cooking strategy, including electric cooking, biogas, and solar cooking. Discuss potential financing models to support this transition and address environmental and socio-economic implications (10 Marks,150 Words)
Evaluate the success of the PMUY in promoting clean-cooking solutions, considering recent global events' impact on LPG consumption. Propose a comprehensive clean-cooking strategy beyond LPG subsidies, incorporating electric cooking and clean fuels like ethanol. Discuss targeted policies and financing models to ensure environmental sustainability and socio-economic inclusivity. (15 Marks, 250 Words)

Source - The Hindu