New Delhi, Feb 28: With an estimated 60 per cent of subsidised fuel not reaching its targeted population, the Finance Minister Pranab Mukherjee today said BPL families will get direct cash subsidy to buy fertilizers and cooking fuel at prevailing market prices from 2012.
 While the roadmap for rolling out direct cash transfers will be available by March 2012, Mukherjee announced about 13 per cent reduction in subsidy of fuel, food and fertilisers for 2011-12 fiscal to Rs 1,34,210 crore from Rs 1,53,962 crore in the revised estimates  for the current fiscal. "The government will move towards the direct transfer of cash subsidy to people living below poverty line (BPL) in phased manner. ...The system will be in place by March 2012," Mukherjee said in his Budget speech. Currently, 6.52 crore BPL families are covered under the Public Distribution System (PDS).
 Noting that the government sells subsidised fuel and foodgrains for the benefit of the poor, Mukherjee said: "A significant proportion of subsidised fuel does not reach the targeted beneficiaries and there is large scale diversion of subsidised kerosene oil".
 At present, a large portion of subsidised kerosene is diverted for adulteration in auto fuel. Similarly, subsidised domestic LPG gets diverted to commercial establishment. Currently, kerosene oil is sold through ration shops at subsidised rate of Rs 20.57 a litre, while domestic LPG is given at a discount of Rs 356.07 per 14.2-kg cylinder.

Lastupdate on : Mon, 28 Feb 2011 21:30:00 Makkah time
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