Task force under Nilekani to look into direct subsidy to individuals, families

The centre has constituted a task force under the chairmanship of Nandan Nilekani with a view to set up a  suitable mechanism for providing direct subsidies to individuals or families that are entitled to kerosene, LPG and fertilisers.

The task force has the mandate to evolve a model of direct transfer of subsidies on these items through revamp of current systems, processes and procedures in the implementation process.

Under Nilekani, who is chairman of the Unique Identification Authority of India (UIDAI) the task force would undertake designing appropriate IT systems and aligning these with the issue of UID numbers. Others on the panel would be drawn from secretaries in the department / ministries of expenditure, financial services, chemicals and fertilisers, agriculture, food and public distribution, petroleum and natural gas, and rural development.

The solutions would be designed to bring about changes in the administration and supply chain management. The task force will be required to submit an interim report within four months of its constitution with its recommendations to be implemented on a pilot basis by the ministries concerned.

This would be undertaken under the supervision of the task force in the six months of the date of submission of the interim report. The final report to be submitted thereafter would include the results of the implementation of the solutions in the field.

The centre views the current policy of supplying kerosene at subsidised prices to below poverty line families under the PDS as involving a lot of waste, leakage, adulteration and inefficiency, according to the finance ministry.