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CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

Pilot projects for cash subsidy transfer to be taken up in 6 Union Territories

New Delhi: November 27,2012

The Department proposes to introduce a pilot scheme for direct transfer of food subsidy under Targeted Public Distribution System (TPDS). Under the proposed scheme, foodgrains will be issued by Food Corporation of India at an appropriate cost near market price. The cash subsidy equal to the difference in the appropriate cost and the present issue price will be credited to the bank account of the beneficiary in advance to enable the beneficiary to purchase the foodgrains at this cost. The proposal does not involve dismantling the TPDS as foodgrains shall continue to be distributed to the beneficiaries under TPDS through the Fair Price Shops.

It is proposed to undertake the pilot scheme in six UTs, namely Chandigarh, Puducherry, Andaman & Nicobar Islands, Lakshadweep, Dadra & Nagar Haveli and Daman & Diu. The scheme is expected to check leakages/diversion of foodgrains under TPDS and test the feasibility of launch of the scheme in other States. The details of the scheme will be finalized in consultation with Union Territories, etc.

This information was given by the Minister of State (IC) for Consumer Affairs, Food & Public Distribution Prof. K.V.Thomas in a written reply in theLok sabha today.

 

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