Govt launches cash transfer scheme in 20 districts

The launch has been scaled down due to slow progress of opening of Aadhaar-linked bank accounts
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First Published: Tue, Jan 01 2013. 11 20 PM IST
Planning commission deputy chairman Montek Singh Ahluwalia defended the scaled down launch of the ambitious scheme. Photo: Ramesh Pathania
Planning commission deputy chairman Montek Singh Ahluwalia defended the scaled down launch of the ambitious scheme. Photo: Ramesh Pathania
Updated: Wed, Jan 02 2013. 12 23 AM IST
New Delhi: The government on Tuesday launched its scaled down cash transfer benefit in 20 districts, including two in the Capital, with a view to provide cash benefits to needy people.
Defending the scaled down launch of the ambitious scheme, planning commission deputy chairman Montek Singh Ahluwalia said, “it is good that the scheme is being launched in a phased manner... Let us demonstrate that the technology works”.
The states and Union territories where the scheme was launched on Tuesday are Karnataka, Andhra Pradesh, Delhi, Rajasthan, Madhya Pradesh, Punjab, Puducherry, Chandigarh and Daman and Diu.
Rolling out the scheme in two districts in the capital, Delhi chief minister Shiela Dikshit said the city government was planning to implement cash transfer through Aadhaar-linked bank accounts of beneficiaries for a number of its schemes. “The scheme is aimed at ensuring delivery of full benefit to the beneficiaries,” Dikshit said hailing the scheme.
The government had earlier planned to introduce the scheme in 43 districts across 16 states from 1 January. The launch has been scaled down due to slow progress of opening of Aadhaar-linked bank accounts.
The government proposes to extend the cash transfer scheme to entire nation by the end of 2013, but the scheme would not include LPG, diesel, fertilizer and food for the time being. At present the scheme will cover seven central schemes mainly dealing with scholarships to students belonging to the Scheduled Casts, Scheduled Tribes and other backward classes.
When asked about the slow progress of issuance of Aadhaar numbers and opening of bank accounts, Ahluwalia said, “it is not necessary that everybody is covered by Aadhaar but it is necessary that every beneficiary is covered”. He further said 280 million people have already been enrolled by UIDAI and 240 million cards have been issued.
Meanwhile, Andhra Pradesh government has said it will launch its own version of cash transfer scheme from 1 April. “We are contemplating the UID-linked CTS for different welfare schemes we are implementing. Relevant exercise is on to bring the CTS into force and the chief minister is positive about it,” Andhra finance minister Aanam Ramanarayana Reddy said.
Union rural development minister Jairam Ramesh, while speaking at a function in Ranchi assured that he would ask the Unique Identification Authority of India (UIDAI) to speed up things. “The direct cash transfer scheme is related to Aadhaar numbers. And in some districts the enrolment process is slow. I will speak to the UIDAI authorities,” Ramesh said.
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First Published: Tue, Jan 01 2013. 11 20 PM IST
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