Advantages of Rajiv Gandhi Gramin LPG Vitaran Yojna

Advantages of Rajiv Gandhi Gramin LPG Vitaran Yojna

Rajiv Gandhi Gramin LPG Vitaran Yojna was launched in October 2009 by the then Congress government to ensure that rural India gets enough LPG.

LPG (Liquified Petroleum Gas) is an important fuel that is commonly used in kitchens. It is a clean fuel because it burns slowly on the flame in the presence of oxygen. No soot is released, making it safe to use. In urban areas and more developed cities, people are aware and equipped enough to be able to buy LPG gas. However, the same cannot be said for people living in rural areas. They do not get the supply of LPG gas as people in urban areas do. LPG gas prices are also high, so affordability is another issue. People, mostly women, travel to distant areas to collect firewood to be able to light fires in the kitchen. Firewood, however, releases a flame that is full of smoke and soot. To ensure that they get LPG, the Rajiv Gandhi Gramin LPG Vitaran Yojna was launched.

Features of the Yojna

Rajiv Gandhi Gramin LPG Vitaran Yojna (RGGLV scheme) was launched on October 16, 2009 by the then Congress government in India. The scheme was launched to set up LPG distribution agencies in rural areas so that people from those areas can get access to clean LPG gas. Remote areas, i.e. areas that cannot be accessed easily by any means of transportation, were also covered in the scheme. Low potential areas, i.e. places where there is a potential of only around 600 LPG refills per month were also covered.

It was launched nation-wide, meaning that it covered all the states and their districts.

RGGLV scheme had the following features:

The distribution agencies that were to be set up in rural areas were small scale: i.e. they would require low infrastructural development and maintenance. This ensured maximum benefit with low capital investment 

The distribution agencies were equipped for 600 monthly LPG refills

The distribution agencies would be managed by the individual who chose to operate it. The agencies were self-operated. It was up to the distribution agency operator how they decided to manage the operations, either solo or with the help of family, friends, and employees

The agencies would be set up in rural areas, where any large scale distribution agency cannot be set up due to low demand

One distribution agency should be able to serve 1500 customers in its area

The distributor had to be aged between 21 and 45 years. This was a positive step in generating employment opportunities for the youth of rural India outside agriculture and related activities

The distributor also had to be a permanent resident of the village where they wanted to set up the distribution agency. For example, if Aman wants to set up an agency in XYZ village, then he should have a valid ID proof certifying that he is a resident of XYZ village

Another salient feature of the scheme was that it was mandatory for the agency to be set up under the name of both husband and wife. If a man was applying for the agency license, then his wife would also be an equal partner. If somebody was unmarried, then they had to sign an undertaking that their future spouse would be a partner in the scheme 

As per the estimations, the capital expenditure required to set up a new distribution agency from scratch would be around Rs. 3.21 lakh

Another essential requirement was that the distributor should own land measuring 20 metres x 24 metres

The distributor should have a godown close to the showroom and the storage capacity of the godown should be at least 300 cylinders at any given time

25% of the distributors had to be from the reserved category (scheduled caste/scheduled tribe). Another 25% was reserved for Defence Personnel / Para Military Personnel / Physically Handicapped / Outstanding Sports persons

If no person applies in the quota, then the vacancy shall be opened up in the unreserved category

It was estimated that a distributor would be able to recover their initial investment when 1800 LPG connections would be set up. Moreover, a distributor would be able to earn around Rs 7500 per month on an average through the distribution agency.

Other Gas Schemes

The Narendra Modi government discontinued the scheme in 2015 in order to cover more rural areas and households under the LPG gas scheme. Pradhan Mantri Ujjawala Yojana (PMUY) was launched in 2016  by the ministry of Petroleum and Natural Gas to supply LPG to those living below the poverty line.

Under the PMUY scheme, the government pledged to bear the cost of setting up an LPG connection. The beneficiary is entitled to receive Rs. 1600 for each connection. An interest-free loan would also be sanctioned to aid the family to purchase a stove and afford the refilling of the cylinder.

Moreover, only a woman who is over 18 years can apply under the PMUY scheme. She should not be availing any similar benefits from any other government scheme. 


Rajiv Gandhi Gramin LPG Vitaran Yojna was a noble scheme meant to aid the rural community and provide LPG gas to them. This was launched to ensure that women do not inhale harmful soot and smoke released from the burning of firewood. Distribution of LPG in rural areas was a huge problem since no major corporation wanted to set up a large distribution agency due to cost and logistical issues. Hence, to solve the supply side problem, RGGLV was a good scheme that supplied LPG gas to many rural households.