Govt to start cash transfer of subsidy

Mar 05, 2011 |

Age Correspondent

New Delhi

Two years after convincing the Planning Commission for cash transfer to BPL card holders in place of giving subsidy in kind, the Delhi government is all set to unveil a scheme in this regard soon. The city government is looking at transferring cash to BPL card holders against a whole range of public distribution system goods like foodgrains and kerosene.
The food and civil supplies department of the city government had been finetuning the scheme for a long time so that the cash subsidy is also linked with annual inflation. However, the government is now toying with the idea to begin cash subsidy on LPG cylinder in place of kerosene and later expand it to foodgrains without much loss of time.
Chief minister Sheila Dikshit had argued hard in the Planning Commission meeting two years ago for cash subsidy amidst vociferous objection of the Plan panel members. She had reportedly said that there had been widespread anomalies in the PDS, hence the government be allowed to go ahead with cash subsidy scheme.
Now, the city government is looking at a scheme to transfer `250 as cash subsidy to each BPL card holder so that in place of kerosene the beneficiary opts for LPG cylinder. This would leave a BPL card holder to spend just about `60 per LPG cylinder.

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