Jairam Ramesh blasts ‘BPL’ definition

Following a missive from rural development minister Jairam Ramesh to Planning Commission deputy chairman Montek Singh Ahluwalia, the commission has agreed to reconsider its controversial definition of 'below poverty line' (BPL) criteria for receiving state benefits.

Ahluwalia responded promptly to Ramesh's eight-page emailed letter on Thursday. He admitted that there was ''confusion'' over the issue; adding that it was still open and he would discuss the matter with Ramesh on his return from New York.

Ahluwalia is currently accompanying finance minister Pranab Mukherjee to attend a US-India investment summit. Prime Minister Manmohan Singh is also in New York for the United Nations General Assembly session.

Under the plan panel's definition, only rural households which spend less than Rs26 a day and urban households spending less than Rs32 a day would be considered 'BPL'. This definition is supposed to cover 42 per cent of the rural population and 26 per cent of the urban population; bringing the average BPL families to 37 per cent overall.

The narrow definition has irked many social economists as well as observers, who wonder how any household can be run on Rs26-Rs42 a day; particularly as inflation shows no real signs of abating.

There are reports of a rift within the Planning Commission itself, as several members disagree with the proposed criteria (Also See: BPL definition divides Planning Commission?).