July 5, 2011 6:29 PM

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Interim Report of Task Force on Direct Transfer of Subsidies submitted

Finance Minister Shri Pranab Mukherjee has said that the direct transfer of subsidies on LPG, Fertiliser and Kerosene will help in curbing pilferage and leakages. He was speaking on the occasion of submission of the Interim Report of the Task Force on Direct Transfer of Subsidies. He said that the success of direct transfer of subsidy on kerosene would also depend on State Governments as its distribution is being done through them. According to an official press release the Minister said that the matter of distributing solar lanterns and solar cookers through LPG outlets and petrol pumps will be looked into. The task force headed by Mr. Nandan Neilkerni, in its interim report has recommended an implementable solution, in a phased manner, for direct transfer of subsidies on LPG, Fertiliser and Kerosene.Earlier, the Finance Minister in his Budget Speech of 2011-12 had referred to a Task Force constituted to work out the modalities for the proposed system of direct transfer of subsidy for Kerosene, LPG and Fertilizers. This Task Force was constituted by the Ministry of Finance in February 2011 under the Chairmanship of Mr.Nandan Nilekani, Chairman, UIDAI. The Task Force was also mandated to suggest a common framework to adopt the above solution of direct subsidies in cash or otherwise for other Government welfare schemes. It has suggested a generic subsidy framework that can be applicable across subsidy programmes in Government.

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