PM’s core group looking at cash transfer of food subsidy

New Delhi, March 14: PM’s core group on food and public distribution system (PDS) is looking at the option of providing foodgrain subsidies through cash transfers using Aadhar Unique Identification cards to eliminate leakages.

“There is a massive leakage in PDS. We are considering the proposition to move towards smart card using Aadhar number, which Nandan Nilekani is working on,” Planning Commission Deputy Chairman Montek Singh Ahluwalia, who heads the PDS core group, told reporters on the sidelines of a book release function.

He said computerisation of PDS alone cannot eliminate leakage of foodgrains. “If there is a strong incentive for leakage, that is not going to be covered by computerisation,” he said.

The core group includes chief ministers of Delhi, Bihar, Chhattisgarh, Assam and chairman of Prime Minister’s Economic Advisory Council (PMEAC) C Rangarajan as members.

–Agencies