We are moving ahead with caution: Jairam Ramesh

Interview with Rural development minister

Minister for Rural Development Jairam Ramesh, in an interview with Sreelatha Menon, explains how the government is trying to tackle the problem areas in the rollout of the direct subsidy transfer scheme. He says the business correspondent model would be expanded to include the lowest common denominator for better coverage. Edited excerpts:

Timely payment to targeted beneficiaries would be critical to the cash transfer scheme. How would you ensure people get the payments on time?
Implementation is a challenge and, therefore, we are moving ahead with caution. In phase-I, there would be a modest beginning, with 34 schemes, primarily those pertaining to scholarships, pensions and other benefit payments in 43 districts. A system of concurrent evaluation is being embedded and the issue of mobile connectivity, essential for the online authentication Aadhaar requires, is being addressed by adding more mobile towers and taking broadband connectivity to every panchayat in two years.

Increasing access to banks would be another challenge.
The current business-correspondent model is being changed to enable kirana shops, women’s self-help groups, agricultural cooperative societies, post offices, ASHA (Accredited Social Health Activist) and Anganwadi workers, etc, to become banking correspondents so that they can serve as agents of banks and make payments.

Is there a plan to upgrade post offices?
The post office network is being reformed, with the postal department committing to upgrading to a core banking solution system across all its offices in 18 months.

Cash transfer in the Public Distribution System (PDS) would be difficult. Would government-run PDS/ration shops be replaced by the cash transfer scheme during the pilots beginning January?
PDS is not being included in the schemes for direct cash transfer in the pilots starting January. I don’t know why these should be included even in the future. As a matter of fact, the government has made it clear subsidies on food and fertilisers are not being included in the first phase of the initiative, recognising these are highly complex and require considerable thought. Chief ministers have different views on this; while some support the linking of the direct benefits transfer with fertilisers and food, others oppose it. The government has clarified it is committed to passing the Food Security Bill.