Madhya Pradesh and Uttar Pradesh are among the States that have shown interest in introducing cash transfer of food subsidy, Minister for Food and Public Distribution Ram Vilas Paswan said here on Thursday.

Currently, direct bank transfer of food subsidy is available in three Union Territories — Chandigarh, Puducherry, and Dadra & Nagar Haveli, where a total 2.4 lakh families get it.

Handbook released

“MP and UP have said that they want to implement the cash transfer scheme in select blocks,” Paswan said while launching a handbook on implementing the cash transfer scheme of food subsidy, jointly prepared by the Department of Food and Public Distribution and the World Food Programme (WFP).

Unveiling the document, together with his deputy CR Chaudhary, Paswan hoped that the handbook would serve as a guide to all States and Union Territories that plan to go for the scheme. The handbook is a step-by-step guide for implementation of cash transfer of food subsidy scheme and is based on the rules, regulations and experience.

It also draws from the WFP’s global experience in cash-based transfers. The UN organisation handles similar schemes in 60 countries and hands out over $1 billion in cash transfers annually, said Hameed Nuru, Country Director of WFP.

Secretaries’ meet

Earlier in the day, Paswan chaired a meeting of State Food Secretaries, where it was decided to provide subsidised foodgrain to hostels and other welfare institutions where students from underprivileged sections live. “We have asked the States to provide us the list of inhabitants in hostels run for students from SC/ST/OBC and backward sections from minority communities live, who can get this facility,” Paswan said.

Under the scheme, each person will be eligible for 15 kg of foodgrain (rice and wheat) a month at rates fixed for the BPL category.

As per the guidelines, even hostels where two-thirds of resident students belong to the targeted communities will be eligible to participate in the scheme and all the students in the hostel, irrespective of their status, will get the benefit, the Minister said.

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