The ambitious 'Dilli Annashree Yojana', finalized last month, will benefit around two lakh families.
"We will launch the Delhi Annashree Yojana on the Gandhi Jayanti Day (October 2). The scheme would cover over two lakh families presently not covered under the public distribution system," Dikshit said, after laying the foundation stone of a community centre in Kishangarh.
The Chief Minister said the scheme would go a long way in making Delhi a hunger-free state.
"A food subsidy of Rs 600 per month would be transferred directly in the bank account of the senior most female member of the household to enable it to purchase foodgrain of their choice," Dikshit said.
The government will spend around Rs 150 crore in the current fiscal for the scheme. There are around four lakh households getting subsidised food items under BPL and AAY schemes.
The Chief Minister had announced the scheme while presenting the annual budget in May.
Dikshit said government was considering to offer the cash subsidy to the 4 lakh beneficiaries who are currently getting subsidized food items.
"They might be given a choice to continue to avail benefit of PDS ration or opt for cash assistance of Rs one thousand per month," Dikshit said.
The city government has been favouring cash transfer to beneficiaries instead of subsidized food grains and had even sought an option of direct cash transfer to BPL families instead of food grains in the ambitious Food Security Bill, which is being vetted by a parliamentary panel.
In a meeting last month, Dikshit conveyed to Planning Commission Deputy Chairman Montek Singh Ahluwalia that Delhi government would like to see an option of cash transfer to the beneficiaries in the Bill, officials said.
Last year, the Delhi government had opposed certain provisions of the Bill saying the proposed universalisation of foodgrain entitlements to majority of the population would be very "difficult to implement".
In a letter to Union Food Minister K V Thomas, the city government had said corruption was rampant in the current public distribution system and desired results would not be achieved if no structural changes were made in distribution mechanism.
The Food Security Bill seeks to provide a legal entitlement to subsidised foodgrains to 75 per cent of the country's rural population and 50 per cent of urban India. (More)
