The Centre is considering a proposal for giving food subsidy in cash instead of foodgrains at cheaper rates in five districts in Uttar Pradesh, Haryana and Delhi on a pilot basis.
Based on the proposals by governments of Uttar Pradesh, Haryana and Delhi, a draft scheme has been prepared to study the feasibility of the alternative mode of transfer of food subsidy to BPL and AAY beneficiaries under the public distribution system, Food and Agriculture Minister Sharad Pawar told the Rajya Sabha in a written reply.
"The draft scheme is under examination," he added.
Pawar also said that governments in these states have submitted proposals for direct disbursement of food subsidy in cash to BPL families in lieu of foodgrains.
The scheme was to be implemented in Lakhimpur Kheri and Hardoi in Uttar Pradesh, Panchkula and Jhajjar in Haryana and Central district in Delhi.
The minister, however, informed that there was no such proposal received from the Planning Commission.