In line with finance minister Pranab Mukherjee’s budget announcement on Monday that the government is looking at direct cash transfers as an alternative to the current subsidy on kerosene and fertilizers and to prevent leakages, the Unique Identification Authority of India (UIDAI) is planning to open Aadhaar-linked bank accounts for the purpose. These can be used for other financial transactions as well. The authority is in the process of empanelling banks...

The policy is to promote specific high-value segments within agriculture, where corporate houses have major profit interests. A COMMON compliment that Pranab Mukherjee's Union Budget for 2011-12 received from the media was its proclaimed “friendliness” to agriculture and rural areas. It was not just the media; members of India Inc. welcomed the Budget as “focussed” on agriculture. However, a close look at the Budget estimates reveals a different picture. Public...

This article documents and then examines the various benefits that, it is claimed, will flow from linking the Unique Identity number with the public distribution system and the National Rural Employment Guarantee Scheme. It filters the unfounded claims, which arise from a poor understanding of how the PDS and NREGS function, from the genuine ones. On the latter, there are several demanding conditions that need to be met in order...

Smart card technology can be used to streamline India's unwieldy PDS. But it is yet to prove itself under real world challenges. Smart cards have become the latest buzzword to remedy India's public distribution system (PDS) — one of the largest food grain delivery networks in the world with more than 500,000 ‘ration' shops. Electronic voting machines have streamlined Indian elections. Credit cards, which can be swiped for payment at any...

Pranab Mukherjee, India’s finance minister, put the rural economy at the heart of a national budget on Monday, saying ridding the farm sector of crippling supply bottlenecks would be his “focus” in the coming fiscal year.A market-neutral budget supporting agriculture, welfare schemes and the extension of banking services to more people was designed to dispel any sense that the Congress party-led government was in drift after a series of high...