Within a span of one year when the pilot project at Kotkasim block in Alwar district on direct cash transfer of kerosene subsidies started in December 2011, the results have surpassed the initial expectations.
Demand for subsidized kerosene has crashed by more than 90% to about 5,000 litres per month from 84,000 litres before the pilot project came into existence. As the consumers got direct cash transfers, there was less room for the middlemen to divert the subsidized commodity. Earlier, the district authorities had expected the offtake will plunge to 40% as the demand would only come from actual users of the commodity.
The pilot project was part of Centre’s ambitious initiative to plug the loopholes in public distribution system and provide directly to the poor rural masses benefits of government’s welfare schemes. Kotkasim in Alwar was the starting point for the Centre, which is now accelerating the drive to roll out the model throughout the country. The government aims to reduce the subsidy burden as weeding out the middlemen in the PDS is expected to cut the subsidy budget.
Alwar district supplies officer R C Meena said the direct cash transfer model will save more than Rs 2 crore in the block and if the strategy is implemented across the district, savings could go up to Rs 60 crore annually.
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