Task force under Nilekani to look into direct subsidy to individuals, families news

May 5, 2011 at 12:50 pm | Posted in Infrastructure | Comments Off on Task force under Nilekani to look into direct subsidy to individuals, families news

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Task force under Nilekani to look into direct subsidy to individuals, families news
16 February 2011
http://www.domain-b.com/latestreports.aspx?docid=Qzk0m1mc6Sc%3dThe centre has constituted a task force under the chairmanship of Nandan Nilekani with a view to set up a  suitable mechanism for providing direct subsidies to individuals or families that are entitled to kerosene, LPG and fertilisers. The task force has the mandate to evolve a model of direct transfer of subsidies on these items through revamp of current systems, processes and procedures in the implementation process. Under Nilekani, who is chairman of the Unique Identification Authority of India (UIDAI) the task force would undertake designing appropriate IT systems and aligning these with the issue of UID numbers. Others on the panel would be drawn from secretaries in the department / ministries of expenditure, financial services, chemicals and fertilisers, agriculture, food and public distribution, petroleum and natural gas, and rural development. The solutions would be designed to bring about changes in the administration and supply chain management. The task force will be required to submit an interim report within four months of its constitution with its recommendations to be implemented on a pilot basis by the ministries concerned. http://www.domain-b.com/adserver/getislandBanner.aspx?docid=Qzk0m1mc6Sc%3d This would be undertaken under the supervision of the task force in the six months of the date of submission of the interim report. The final report to be submitted thereafter would include the results of the implementation of the solutions in the field. The centre views the current policy of supplying kerosene at subsidised prices to below poverty line families under the PDS as involving a lot of waste, leakage, adulteration and inefficiency, according to the finance ministry. The government’s release in the matter said, it therefore found it imperative that the system of delivering the subsidised kerosene be reformed on an urgent basis. The case of subsidised LPG supply to intended beneficiaries also needs to be similarly overhauled, according to the government. “Fertiliser subsidy, as it exists today, is available to all farmers. It is not possible to differentiate the segments for which the subsidy should be given in this sector. There is a need to evolve a mechanism for direct subsidies to individuals who are entitled to them,” the government press release added. Chief economic advisor Kaushik Basu has called for direct transfer of subsidies to the individual beneficiaries, and letting the market decide the prices. The government had said in the winter session of the parliament that the price of kerosene to BPL families had not been revised for a long time. Also the possibility of diversion of kerosene supplied through the PDS cannot be ruled out due to the huge price difference with petrol / diesel it added. As on 1 December 2010, the under recovery on kerosene supplied to the PDS stood at Rs16.88 per litre and Rs 272.19 per cylinder on domestic cooking gas.