Cash in hand for the poor - a Good move or a blunder?

Discussion in 'Politics & Society' started by SpArK, Nov 23, 2012.

  1. SpArK

    SpArK SORCERER Senior Member

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    Cash in hand for the poor - a Good move or a blunder?


    Some people who might have read the newspapers must have seen the news of Governments plan to give direct cash to people instead of subsidies in their own bank account . Its been learned 4 lakh crore rupees has been allocated towards it. There are 32 schemes including LPG, rice wheat and essentials, school education, kerosene, scholarships,pensions , health schemes, unemployment allowance etc etc.

    The direct transfer to beneficiaries will begin across 51 districts in 16 states effective January 2013. FM chidambaram said, the direct transfer of subsidies would be carried out through electronic benefit transfer (EBT). EBT is a system that allows the government to provide and track benefits to households or citizens directly through their bank accounts.

    I want to ask Indian members whether this scheme will prove to be successful like the rural employment scheme which did pretty well or will it be a blunder paying the money to people. or is it just electoral politics.


    Ref:

    Subsidies to be routed through EBT: FM | mydigitalfc.com
     
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  3. SpArK

    SpArK SORCERER Senior Member

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    Soon, LPG subsidy will land in your bank account

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    Six nationalised banks in the State have recently informed the oil marketing companies (OMCs) their willingness to implement the proposed pilot project for Aadhar-based direct transfer of subsidy to LPG consumers.

    The OMCs are awaiting clearance from the Centre to launch the pilot project.

    The much-awaited launch of the pilot was delayed as the banks had sought more time in making their own preparations.

    Some of the banks were averse to opening zero-balance Aadhar accounts for the project. Hence, the pilot, which was planned to be launched last month, was delayed.

    Now, banks have started coming forward to take up the project. Other nationalised banks are expected to fall in line soon.

    The six banks are: Syndicate bank, Canara bank, State Bank of Mysore, Punjab National Bank, Allahabad Bank and Indian Overseas Bank. The oil companies — Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited — are planning to directly transfer the subsidy amount of a domestic LPG cylinder to the Aadhar account of the customers.

    The measure is aimed at preventing the misuse of cylinders. The customers will be charged the market price for the refill. Subsidy will be given to only six cylinders a year.


    Official sources said the oil companies have completed all other preparations for the launch. The companies are now waiting for the Union Petroleum Ministry to issue a formal notification, making Aadhar numbers mandatory for obtaining refill cylinders in the notified areas.

    ​Identification, verification

    As soon as the notification is issued, officials said, domestic LPG consumers in the notified areas will have to personally visit their respective LPG dealers and identify themselves by submitting their biometric details. The dealer will also verify the Aadhar number of
    the customers.

    The dealer will issue a letter to the consumer confirming that she/he is an LPG consumer. The consumer should open an Aadhar bank account using the letter in any of the nationalised banks.

    A cut-off date will be fixed for the consumers to complete these processes. Only those who complete these processes will get LPG refill and the subsidy amount, officials pointed out.

    The oil companies, sources said, have already given a detailed instruction to the LPG distributors in Mysore, Tumkur and Dharwad districts where the pilot will be launched in the State.

    The Unique Identification Authority of India (UIDAI) will open a counter near all LPG distributors’ offices for on-the-spot enrolment of those who do not have Aadhar numbers. The distributors have been instructed to educate the consumers about the system over phone, sources said.

    Soon, LPG subsidy will land in your bank account



    One step closer to greener city


    Pollution levels in the city are seeing a new high and to keep a check on it, the State Transport Department is taking steps to ensure that that the city’s transport system is environment friendly. Department officials held a meeting with representatives of various banks and asked them to finance autorickshaw drivers, who want to convert their two-stroke vehicles into four-stroke ones. The department is extending subsidy for the conversion.

    Last year, the state government came out with a scheme to provide Rs 15,000 subsidy to auto drivers opting for conversion. But the scheme was put on hold as many banks refused to extend loans to auto drivers, saying it is difficult to recover loan amount from auto drivers.

    “The bank representatives told us that they are yet to recover the money given to auto drivers a few years ago to buy new three-wheelers. But autorickshaw associations have given an undertaking that they would ensure repayment. Convinced with this, the banks have agreed to sanction loans. The auto drivers have to deposit the Rs 15,000 subsidy amount with the banks to get loans. It is necessary to have four-stroke autos, as two-stroke autos pollute the city,” said the State Transport Commissioner K.R. Shrinivas.

    There are over 80,000 autos in the city, and of them, 30,000 are two-stroke. These autos contribute majorly to air and noise pollution as their silencers can easily be tampered with.

    “Each new auto costs around Rs1.42 lakh. The subsidy amount to be extended by the transport department will be of great help to auto drivers. Auto unions have promised the banks that they will ensure Rs 16 crore in outstanding loans would be recovered fast. We will ensure that all two-stroke autos will be off the city roads,” said Mr Somashekara, a representative of a city auto union.

    One step closer to greener city | Deccan Chronicle

    Direct transfer of food subsidy: Centre to conduct pilot study from Jan

    NEW DELHI, OCT 30:


    In an effort to curb leakages of food-grains meant for ration shops, the Centre today said it is considering direct transfer of food subsidy to ration card holders and will launch a pilot project in 6 Union Territories (UTs) from January, 2013.

    “To check leakages and diversion, an alternate model of direct transfer of food subsidy is being considered,” the Food Minister, K V Thomas said after the two-day meet of state food ministers and food secretaries, here.

    A pilot scheme would be launched in the next two months in six Union Territories — Chandigarh, Puduchery, Andaman and Nicobar, Lakshadweep, Dadra and Nagar Haveli and Daman and Diu — to assess the efficacy of the proposed alternative model, before its implementation in other states, he said.

    The Centre has sought views of state governments and UTs on the alternate model. In the meantime, a pilot scheme will be implemented, he added.

    The alternative model involves distribution of food-grains at the rate closer to the market prices through PDS and transfer of food subsidy to the beneficiaries’ bank accounts. This is aimed at ensuring food subsidy reaches the intended beneficiaries and is not cornered by vested interests.

    Thomas said states favoured the alternative model after Planning Commission Deputy Chairman, Montek Singh Ahluwalia assured them direct transfer of food subsidy would not lead to dismantling of current system of procuring grains at minimum support price (MSP) and distribution through PDS.

    Citing apprehensions expressed by some states on the alternative model, the Food Secretary, Sudhir Kumar said, “Some states were concerned about availability of bank branches and opening of bank accounts among others.”

    The Government’s food subsidy given to run the public distribution system (PDS) is likely to be Rs 91,000 crore in the current fiscal, against Rs 72,823 crore in 2011-12.

    The government covers 18-crore households under the PDS.

    Business Line : News : Direct transfer of food subsidy: Centre to conduct pilot study from Jan
     
  4. ganesh177

    ganesh177 Regular Member

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    This is one of the best thing indian govt has planned out for the benefit of grass root people.
    Its no blunder, its making lot of sense, its convenience, will eradicate corruption, save time, bypass red tape, help poor .
     
    SpArK likes this.
  5. pmaitra

    pmaitra Moderator Moderator

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    EBT = Scroungers' Economy = Popular Largesse = many Obamas and Camerons getting elected.
     
  6. Bangalorean

    Bangalorean Stars and Ambassadors Stars and Ambassadors

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    Let's put it this way: if you have to have subsidies, this is better than the current system.

    But then, it is always better to have no subsidies at all. Unfortunately that is not possible in the India of today - we do have a segment of population that needs to be subsidized. Hopefully, one day the incomes will increase enough to allow us to completely get rid of subsidies.
     

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