Though the exact burden on the state exchequer has not been estimated yet, the number of beneficiaries could be in excess of 55 lakhs.
This was decided at a high level meeting chaired by the Chief Minister Naveen Patnaik. The new pricing will be effective from August 2008.
With the assembly elections in the state few months away, this is considered as a master stroke by Patnaik to win over the support of large chunk of population living below poverty line particularly in the backdrop of inflation and rising food prices.
The families covered under the Antodaya scheme, tribal hostels and the APL families in the Kalahandi-Bolangir-Koraput (KBK) districts will get rice at the same rate.
"We hope this decision will provide relief to all BPL families at this time of high price rise", Patnaik told the media after the meeting.
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Official sources said, there are about 44 lakh families in the rural areas and about 5 lakh families below poverty line in urban areas.
Besides, that there were about 5 lakh above poverty line (APL) families in the KBK districts getting rice at concessional rate. That apart, all the tribal hostels will be supplied rice at Rs 2 per kg. The finance department will make provisions for the scheme.