Ramping Up Domestic LPG Production, Rs 39.48 Lakh Cr Sanctioned So Far Under PM-MUDRA: Finance Minister Nirmala Sitharaman

New Delhi: Finance Minister Nirmala Sitharaman on Tuesday said the domestic production of LPG is being ramped up to ensure cooking gas supply to households during turbulent times amid the West Asia crisis.

Replying to a debate on the second batch of supplementary demands for grants in the Rajya Sabha, the finance minister also said the country has enough fertiliser for Kharif crops and global bidding to procure nutrients for the next Rabi season will start soon.

India imports nearly 65 per cent of its domestic LPG requirements, and 90 per cent of the imports come through the war-hit Strait of Hormuz.

The West Asia crisis has come up with a new challenge, and Prime Minister Narendra Modi's stress on self-reliance and increasing production to meet India's basic demands has helped the country, she said.

"Overwhelmingly, 90 per cent of the 65 per cent LPG imports come through the Strait of Hormuz. As a result, there was speculation about whether we would get it or not. There are enough reports on how we are ensuring a steady flow during these turbulent times," she said.

In the LPG sector, Sitharaman said the country has been building up capacities and even "at this time the way we have ramped up domestic capacity in LPG, is also coming of help".

On March 8, the government directed oil refineries and petrochemical complexes to maximise LPG production by diverting propane, butane, propylene and butane streams to the LPG pool.

"As a result, domestically also, we are ramping up capacities to supply LPG, and domestic LPG production is going up about 25 per cent," the minister said, adding that the entire output of this ramped-up capacity is going to domestic consumers.

"So to ensure that households don't suffer, not only are there steady streams of shipping lines coming in, but domestically we have also ramped up the capacity for production of the LPG, diverting from other hydrocarbon material to LPG production. As a result, domestic supplies will be adequately streamlined, and supplies will remain steady," Sitharaman said.

On fertilisers, the minister said there is adequate availability for the Kharif season, and global bidding for imports will begin for the winter crop (Rabi).

Meanwhile, Sitharaman said Pradhan Mantri MUDRA Yojana has benefitted many small entrepreneurs and Rs 39.48 lakh crore has been sanctioned since the launch of this scheme. Under the MUDRA scheme, launched by Prime Minister Narendra Modi on April 8, 2015, the total NPAs (non-performing assets) are at around 2 per cent of the total loans.

In reply to supplementary queries during Question Hour in the Rajya Sabha, Sitharaman noted that PM-MUDRA is one of the most popular schemes and it has benefited a lot of small-time entrepreneurs.

"...Rs 39.48 lakh crore have been sanctioned since the launch of the scheme. So this is one of the biggest bank lending schemes, which has reached people who have no collateral to provide," Sitharaman said, adding that PM-MUDRA has three components, namely Shishu, Kishor and Tarun.

As of March 31, 2025, in Shishu, 12.4 per cent is outstanding against the total amount lent. In Kishor, 9.48 per cent is outstanding, while in Tarun, 7.92 per cent of the total amount given is outstanding. Banks are pursuing recovery of these outstanding loans, she said.

"Category-wise, if I have to look at specific NPA, it is rather low in Shishu. It is only 1.83 per cent of the amount totally disbursed under that category," Sitharaman said. Shishu loans are given to those people who take small amounts to build their businesses.

"So as it is, I would say the total overall NPA in PM-MUDRA itself is only about 2 per cent or in that range, 2.3 per cent, like that. So it is not as if there are huge NPAs, and it is widespread, and therefore we have to take huge action and so on. Most of them live within the vicinity of the banks, and therefore they are in daily, almost daily, contact with the bank, and we are improving now," the minister said.

In a written reply, Sitharaman informed that more than 18.37 crore loans amounting to Rs 15.50 lakh crore have been sanctioned under Pradhan Mantri Mudra Yojana during the last three years (April 2022 to March 2025), with about 19 per cent loans to new entrepreneurs/ accounts and 65 per cent loans to women entrepreneurs.

The steps taken by banks for recovery of NPA under PMMY include constant follow-up and increased frequency of customer connect and rescheduling of instalments, and One Time Settlement (OTS).

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