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October 22, 2026

India issued 80 million free gas connections since… · Consequences ⚖️

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Unintended Consequences — Good intentions. Surprising results. Real lessons.

Unintended Consequences

Good intentions. Surprising results. Real lessons.

Ep 150 · Oct 22, 2026

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Episode 150 · India issued 80 million free gas connections since 2016, yet 90 percent of users still burned firewood.
2026-10-22
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India issued 80 million free gas connections since 2016, yet 90 percent of users still burned firewood.

Segment 1 — The Cold Open

On 1 May 2016 Prime Minister Narendra Modi stood in Ballia, Uttar Pradesh, and launched the Pradhan Mantri Ujjwala Yojana, promising free LPG connections to five crore poor households so women would no longer cook over wood and dung fires. By September 2019 the scheme had delivered more than eight crore connections. Yet a 2018 survey of 4,994 forest-fringe households found that 90 percent of those who received LPG continued to collect and burn firewood every day.

Segment 2 — The Good Intention

The decision grew from a clear public-health problem. Indoor air pollution from solid fuels was estimated to cause hundreds of thousands of premature deaths each year, hitting women and children hardest. Modi’s government, like earlier administrations, viewed LPG as the practical clean-fuel option already available across most districts. The scheme therefore focused on the first barrier: the up-front cost of the connection, regulator, and first cylinder. By registering the connection in an adult woman’s name and covering up to Rs 1,600, officials hoped ownership would translate into daily use and measurable drops in smoke exposure. At the time the logic appeared straightforward and measurable. The program treated the connection itself as the decisive intervention because earlier subsidy schemes had shown that households rarely bought the initial hardware when cash was scarce at the start of a season. Registering the asset in the woman’s name was meant to give her leverage inside the household budget when the next refill decision arrived. Officials could point to existing LPG distribution networks in most blocks and to the fact that cylinders were already being delivered to rural dealers, so the missing piece looked like affordability of the first step rather than any deeper change in fuel markets or forest access. This framing let the government set numeric targets that could be tracked through oil-marketing-company records without needing to monitor daily cooking fires.

Segment 3 — The Implementation

Oil-marketing companies set up Ujjwala melas and processed applications through the Socio-Economic and Caste Census list. Targets rose from five crore to eight crore connections. Press releases from the Ministry of Petroleum and Natural Gas recorded steady progress: 2 crore in 2016-17, 1.56 crore in 2017-18, and 3.62 crore in 2018-19. By June 2019 the cumulative total stood at 7.23 crore. Early coverage reports celebrated the speed; the government described the program as a direct step toward smoke-free villages. The melas themselves became visible events where local officials and company representatives handed over the connection documents, stove, and first cylinder in a single afternoon, which made the achievement easy to photograph and report. Because the connection carried a government subsidy of up to Rs 1,600 and required only the woman’s name and address verification, the administrative load per household stayed low enough for the oil companies to meet monthly quotas. The same speed, however, meant that verification of whether the household already had an LPG connection elsewhere rested largely on Aadhaar matching, a step later flagged as incomplete in the audit.

Segment 4 — The Unintended Consequences

The Comptroller and Auditor General later examined what happened after the connection arrived. Among beneficiaries who had held a connection for more than a year, average annual refills stood at 3.66 cylinders as of 31 March 2018 and fell to 3.21 by 31 December 2018. A refill lasts roughly a month for a typical household; three cylinders therefore covered only about three months of cooking. The 2021 study published in Energy Research & Social Science surveyed 4,994 households across 500 villages in the Central Indian Highlands Landscape. It found that 90 percent of LPG-owning families still gathered and burned firewood. Researchers described the pattern as fuel stacking: households kept the free connection but treated purchased LPG as a supplement rather than a replacement. Refill costs, irregular cash income, and the zero-price option of collecting wood nearby kept the older fuel in daily rotation. The same CAG report noted 1.98 lakh beneficiaries averaging more than twelve cylinders a year—an improbable domestic volume that suggested some cylinders were being diverted to commercial kitchens. When a household’s annual cash flow is tied to one or two harvest sales, spending several hundred rupees on a cylinder in a lean month competes directly with school fees or medical costs; the wood that can be gathered in an afternoon carries no cash price and therefore wins on most days. The survey also showed that households with more forest within easy walking distance were more likely to continue daily collection even after they received the LPG connection, because the marginal cost of another trip remained zero. Over time the connection still reduced total firewood volume for some families—the study found that longer ownership correlated with fewer collection hours—but the reduction was gradual and never reached full displacement for the great majority. The audit’s finding of multiple daily refills at single-bottle connections further indicated that some subsidized cylinders left the domestic system entirely, reducing the number available for the intended users and complicating any simple count of health gains.

Segment 5 — The Aftermath

The audit prompted tighter checks on refill patterns and renewed emphasis on sustained use rather than connection counts alone. Later government updates continued to report cumulative connections past the original eight-crore target, yet independent surveys showed the same stacking behavior persisting in forest-adjacent districts. No large-scale reversal occurred; instead, state programs began experimenting with targeted subsidies for additional cylinders and community-level firewood alternatives. The core design—pay once for access, then charge market price for fuel—remained unchanged. Follow-up surveys in the same Central Indian Highlands Landscape continued to record that the probability of daily LPG use stayed lowest among the poorest and most forest-adjacent households, exactly the groups the scheme had prioritized for the initial connection.

Segment 6 — The Lesson

When a policy measures success by the number of connections transferred rather than the number of months households cook without firewood, the cheaper or free alternative stays in use. When the same policy registers ownership in women’s names yet leaves refill costs on household budgets that fluctuate with agricultural seasons, the connection becomes an occasional convenience. When diversion controls are weak, some of the subsidized fuel simply leaves the domestic system. The question for any new clean-fuel program is therefore whether its chosen metric will still track actual daily displacement once the initial hardware has been distributed.

Sources

  • pmc.ncbi.nlm.nih.gov — Firewood, forests, and fringe populations: Exploring the inequitable socioeconomic dimensions of Liquified Petroleum Gas (LPG) adoption in India
  • thehindu.com — CAG sees diversion of LPG cylinders for commercial use
  • pib.gov.in — Targets fixed under PMUY Scheme already achieved
  • pib.gov.in — 7.23 Crore Connections released under Pradhan Mantri Ujjwala Yojana
  • pibindia.wordpress.com — Pradhan Mantri Ujjwala Yojana: A Giant Step Towards Better Life For All
  • data.gov.in — State/UT-wise Number of Pradhan Mantri Ujjwala Yojana (PMUY) Connections from 2018 to 2023

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