Cabinet Approvals on August 8, 2025

On 8 August 2025, the Union Cabinet chaired by Prime Minister (PM) Narendra Modi approved the following proposals:

Union Cabinet approves continuation of targeted LPG subsidy for Pradhan Mantri Ujjwala Yojana (PMUY) consumers in FY 2025-26 (FY 26) at a total cost of Rs 12,000 crore.

Union Cabinet approves Rs 30,000 crore compensation to public sector Oil Marketing Companies (OMCs) for domestic LPG supply losses.

CCEA approves construction of 4-lane Marakkanam–Puducherry highway under Hybrid Annuity Mode (HAM) at a cost of Rs 2,157 crore.

Union Cabinet Approves Continuation of Targeted LPG Subsidy for PMUY Consumers in FY 2025-26

The Union Cabinet, chaired by PM Modi, has approved the continuation of targeted subsidies for Pradhan Mantri Ujjwala Yojana (PMUY) consumers in Financial Year 2025-26 (FY 2026)  to keep LPG ( Liquefied Petroleum Gas) affordable for low-income households and maintain its usage amid global price fluctuations.

• The scheme will involve a total expenditure of Rs 12,000 crore.
• A subsidy of Rs 300 will be given for each 14.2 kilogram (kg) LPG cylinder, for up to 9 refills a year. For smaller 5 kg cylinders, the subsidy will be provided in proportion to the size.

About PMUY:

PMUY was launched in May 2016 by the Ministry of Petroleum and Natural Gas to provide deposit-free LPG connections to adult women from poor households.

Each beneficiary gets a connection worth Rs 2200 that covers the security deposit (SD), regulator, hose, consumer booklet, and installation charges.

Note: In FY 2020, the average usage was around 3 refills per household in a year. By FY 2023, it rose to 3.68 refills, and in FY 2025 it reached about 4.47 refills per household.

• As of 1 July 2025, there are 10.33 crore connections under this scheme.

Points to Note:

In May 2022, the government started a targeted subsidy of Rs 200 per cylinder to protect PMUY families from high prices and ensure they continue using LPG for cooking.

• This amount was increased to Rs 300 in October 2023.

Union Cabinet Approves Rs 30,000 Crore Compensation for Public Sector Oil Marketing Companies

The Union Cabinet  chaired by PM Modi, has approved Rs 30,000 crore as compensation to three public sector Oil Marketing Companies (OMCs) — Indian Oil Corporation Limited (IOCL) based in New Delhi (Delhi),  Bharat Petroleum Corporation Limited (BPCL) based in Mumbai (Maharashtra), and Hindustan Petroleum Corporation Limited (HPCL) also based in Mumbai.

• This compensation is for the losses they incurred in supplying domestic LPG at regulated prices. It will help these companies meet key expenses.

i.In 2024-25, international LPG prices stayed high, but the government kept domestic LPG prices stable to protect consumers. This led to significant losses for OMCs, yet they ensured uninterrupted supply across the country.

ii.The Ministry of Petroleum and Natural Gas (MoPNG) will decide how the amount will be distributed among the companies, and the payment will be made in 12 instalments.

CCEA Approves 4-Lane Marakkanam–Puducherry Road Project in TN

The Cabinet Committee on Economic Affairs (CCEA), chaired by PM Modi, has approved the construction of a 46 Kilometre (km), 4-lane stretch between Marakkanam and Puducherry in Tamil Nadu (TN).

• This road is part of the East Coast Road and will be developed under the Hybrid Annuity Mode (HAM) at a total cost of Rs 2,157 crore.
• Of this, Rs 1,118 crore is for construction, while Rs 442 crore will be used for land acquisition.

i.The new road will link with major National highways (NH)-32 and NH-332 — and state highways (SH)-136 and SH-203.

ii.It will also improve transport connections by linking two railway stations (Puducherry, Chinnababusamudram), two airports (Chennai, Puducherry), and the Cuddalore minor port.

iii.Of the total 46 km stretch, around 34.7 km will be developed as a new Greenfield, access-controlled bypass for Puducherry. The average daily traffic in FY25 is estimated at about 17,800 Passenger Car Units (PCU).