No cash transfer of food, fertiliser and fuel subsidy for now

The government will not transfer cash against subsidy for food, fertiliser, diesel and kerosene under the direct benefit transfer system, at least for the present, even as it is all set to roll out the cash transfer system from tomorrow.

The government will start rolling out the scheme of cash transfer to beneficiaries of select schemes in 20 districts on Tuesday, but it would not cover food, fertiliser and fuel subsidies in the initial phase, finance minister P Chidambaram said today.

"At the moment there is no intention to transfer subsides on food, fertiliser, diesel and kerosene through direct benefit transfer. Here, existing system will continue because they are complex issues," he said.

The seven schemes, which are ready for online payout from 1 January include pre- and post-matric scholarships for SC, STs and OBCs, Indira Gandhi Matrutva Sahayata Yojana, Dhanalakshmi scheme and stipend scheme for SC, ST job seekers.

"We are proceeding with caution. Twenty districts from January 1... All 26 schemes are ready for rollout. On January 1, the seven schemes in which pay out is due in the (20) districts, the money will be transferred through the direct benefit transfer system using the UIDAI platform," he said.

Chidambaram said more and more districts and schemes would be covered under the scheme during the course of 2013.