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Dande Committee’s recommendation ‘Your money in your hands’ surfaces again! Will Modi government implement?

Posted on: 06/Jun/2014 2:30:39 PM

Dande Committee has recommended that the cooking gas subsidy payment must be deposited by the government in the consumers’ bank accounts. 

Cooking gas 

The scheme, ‘your money in your hands’ was introduced on the  1st January, 2013 in order that the various subsidies provided by the government should reach the people living ‘below the poverty line’. 

The scheme to deposit the subsidy for cooking gas in the consumers’ bank account was implemented from 1st June. The scheme was extended to 291 districts in the country. The scheme was available for consumers with ‘Aadhar’ cards. Consumers used this subsidy money for buying the cooking gas cylinders. 

Bank Account 

So far, 2.80 Crores families have been given a total subsidy of Rs. 5400 Crores. However, Aadhar cards were be required to get this subsidy. Consumers without Aadhar cards or bank accounts could not receive this subsidy. 

Based on the complaints received in this regard, the previous government announced on 7th March that ‘your money in your hands’ scheme was being stopped. 

Subsequently, a comommittee was formed to examine and analyse the scheme under the leadership of Mr. S G Dande, a former IIT Director. This committee has submitted a report to the central government strongly recommending the immediate implementation of this scheme. 

Complaint 

The report noted that the scheme was implemented especially with the reason to reduce and eliminate the irregularities in the cooking gas distribution system. The first stage report confirms that this was achieved by the implementation of this scheme. Especially, the practice of misuse of the cylinders for different purposes was greatly reduced. 

Also, the scheme facilitated the removal of several bogus gas connections and simplified the procurement of cooking gas cylinder. 

However, the slow progress in the implementation of the scheme and the selection of districts with limited Aadhar card holders resulted in a lot of complaints. Especially, the illiterate consumers faced a lot of difficulties in getting both the Aadhar cards and in opening bank accounts. 

The committee recommended that a ‘Grievance Cell’ should be formed to address these problems.

A programme to increase the public awareness on ‘Procurement of Aadhar cards & Opening Bank Accounts’ should be conducted for 3 months all over the country before taking up the reimplementation of the scheme.

Post Offices

In villages where there are no bank facilities, Cooperation Bank Branches and the Post Offices can coordinate with banks to install small ATMs. The ‘VAT’ tax on cooking gas can be reduced.

This public welfare scheme introduced by the previous government is now in the hands of the newly formed government for decision.

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