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LATEST NEWS UPDATES | Central Delhi to be test case for cash transfer by Sobhana K

Central Delhi to be test case for cash transfer by Sobhana K

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published Published on May 24, 2011   modified Modified on May 24, 2011
The Delhi government might be the first in the country to implement the cash-transfer scheme, replacing the existing public distribution system (PDS). The Food and Civil Supplies Department is in the final round of discussions with the Union government on the issue.

Though the Delhi government had put forward this proposal almost three years ago, it had been in cold storage ever since. The project has now been revived. Central Delhi, with the least number of cardholders, has been selected for the pilot project. Incidentally, it falls under the constituency of Food and Civil Supplies Minister Haroon Yusuf.

“The discussion are at a very critical stage right now. We are looking at the practical problems we could face while implementing this scheme,” said Food and Civil Supplies Commissioner Dharam Pal.

This proposal was first mooted by former chief secretary Rakesh Mehta. According to the proposal, the cash will be transferred into the account of the family’s female head.

Antyodaya cardholders will get Rs 1,100 per month, while below poverty line cardholders will get Rs 950 per month. The government has also proposed to pay Rs 250 per month to a category of above poverty line cardholders, whose income level is below Rs 1 lakh per annum.

The proposal also has a provision for quarterly review of the amount fixed for cash transfer. If the prices of essential commodities rise, this amount will be increased accordingly. “The point of debate at present is — do we completely do away with above poverty line cardholders or not,” Dharam Pal said.

Though the money will currently be transferred into the accounts of female heads of families, officials are working on a system that will ensure that the transfer is linked to Adhaar cards in the future.

Based on the success of the pilot project, the system will be replicated across Delhi. The city has as many as 4,850 fair prices shops and kerosene depots.

Meanwhile, civil groups across the Capital continue to protest against the move.

The Indian Express, 5 May, 2011, http://www.indianexpress.com/news/Central-Delhi-to-be-test-case-for-cash-transfer/786089/


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