Ummid Assistant

Samsung sets up fund for poor kids' education

US varsity offers doctorate for education professionals

Welcome Guest! You are here: Home Science & Technology

'Use IT for subsidy transfers to drive industry growth'

Saturday March 17, 2012 04:05:35 PM, Fakir Balaji, IANS

Related Articles

No option but to bite subsidy bullet, says Manmohan

Backing the budget proposal for cutting subsidies to two percent of the GDP, Prime Minister Manmohan Singh said Friday that the government will have to "bite the bullet when  

Bangalore: Use of technology for transferring subsidies directly to beneficiaries and other social initiatives envisaged in the 2012-13 budget will drive growth of IT hardware and electronics sectors, an industry representative said.

"Technology intervention to ensure social schemes such as subsidies reach targetted groups will create huge demand for ICT products and services. Measures announced in the budget are path-breaking for transforming lives of beneficiaries," Manufacturers' Association of Information Technology's (MAIT) executive director Sabyasachi Patra told IANS.

As an apex body, MAIT represents the Indian ICT electronic hardware industry, training and associated services sectors to promote use of technologies for the socio-economic development of the country.

To plug leakages and ensure transparency, Finance Minister Pranab Mukherjee Friday said the government had accepted the recommendations of the task force headed by Unique Identification scheme (UID) chairman Nandan Nilekani - on using technology for transferring various subsidies directly to intended beneficiaries.

"For instance, a mobile-based fertilizer management system (mFMS) has been designed to provide end-to-end information on the movement of fertilizers and subsidies from the manufacturer to retail level," Mukherjee said in the Lok Sabha.

The central government plans to roll out the facility during the ensuing fiscal in phases to benefit about 12 crore (120 million) farmer families in the country and cut subsidies by curtailing misuse of the key farm input.

"The use of mobile device to check slippages in disbursements of fertilizer subsidy through mFMS will not only increase the buying power in rural areas but also creates a huge opportunity to vendors and service providers, as the facility involves front-end and back-end integration and seamless connectivity," Patra said.

Similarly, use of transparency portals by the three state-run oil marketing companies - IOC, HPCL & BPCL - to improve customer service and reduce leakage will create demand for manufacturing a range of ICT products by vendors in the small and medium enterprise (SME) segment.

A pilot project for selling LPG (liquefied petroleum gas) at market price and reimbursing subsidy directly into the beneficiary's bank account is being conducted at Mysore, about 150 km from here.

Another pilot project on direct transfer of subsidy for kerosene into bank accounts of beneficiaries has been initiated at Alwar in Rajasthan. Similarly, the Aadhar (UID platform) has been used to validate ration cards through the Public Distribution Scheme (PDS) in Jharkhand.

"These pilot projects show that substantial economies in subsidy outgo can be achieved by using Aadhar platform. It will be our endeavour to scale up and roll out these Aadhar enabled payments for various government schemes in 50 districts over the next six months," Mukherjee said Friday.

Lauding the initiative for harnessing the power of technology - to ensure direct transfer of subsidy for kerosene into bank accounts of beneficiaries, Patra said national rollout of the project would have a multiplier effect on the electronic hardware industry and benefit intermediaries across the value chain.

"Likewise, the planned fibre optic connectivity of local bodies (gram panchayats) will lead to greater usage of consumer premise equipment and other handhelds devices," Patra pointed out.

In light of recent controversy over the UID scheme between the Home Ministry and the Planning Commission, Mukherjee's announcement that budgetary funds would be provided for Aadhar to enroll an additional 400 million people will encourage the industry to invest in creating the enabling infrastructure.

"As the government intends to use the UID platform to disburse payment to old age, widows and physically challenged and scholarships directly to the beneficiary accounts, the plan will lead to financial inclusion, as its voluminous data can be used for other schemes such as the Mahatma Gandhi National Employment Guarantee Act," Patra asserted.

The association also hailed excise duty reduction to six percent for LED (light emitting diode) lamps and full exemption from basic customs duty on parts, components and sub-parts to manufacture memory cards for mobile phones and LCD (liquid crystal display) television panels.
 


(Fakir Balaji can be contacted at fakir.b@ians.in)




 

 


 

 

Home | Top of the Page

Comments

Note: By posting your comments here you agree to the terms and conditions of www.ummid.com

Comments powered by DISQUS

i

i

 

 

 

Top Stories

Mukherjee's budget promises tax relief, subsidy cut, reforms

Tax relief to individuals, promise to curb black money, major push on infrastructure, capital market reforms and huge subsidy cut were among proposals listed by Finance  

Union Budget 2012-13: Highlights

India's growth disappointing, but recovering, says Mukherjee in budget speech

Minority Affairs Ministry funds increased by Rs. 385 crore

Over 21 percent hike in RTE funds

 

  Most Read

No option but to bite subsidy bullet, says Manmohan

Backing the budget proposal for cutting subsidies to two percent of the GDP, Prime Minister Manmohan Singh said Friday that the government will have to "bite the bullet when  

Budget: A manuscript of good intentions?

It has made all the right noises about the need to reform and prune subsidies, and even extends incentives to tax payers. But without targets, Finance Minister Pranab Mukherjee's 7th union budget remains a manuscript of good intentions for the Indian economy. Yes, each of India's 35 million tax payers stands to gain at least Rs.2,000 ($40)  

 

  News Pick

Tendulkar strikes record 100th international century

Sachin Tendulkar struck his record 100th international century to guide India to 289 for five in 50 overs against Bangladesh in the fourth ODI of   

India's finest salute Sachin

US threatens sanctions against India over Iran oil?

The United States has threatened to impose sanctions on India if it fails to reduce its purchases of Iranian oil, according to a media report citing unnamed Obama administration officials. A decision to levy penalties  

Nadimul Haq among three journalists nominated to Rajya Sabha by Trinamool

The Trinamool Congress leadership Friday nominated four candidates for the March 30 Rajya Sabha polls, including three journalists from West Bengal. Industries Minister Partha Chatterjee  

 

Picture of the Day

Union Finance Minister Pranab Mukherjee giving final touches to the General Budget 20112-13, in New Delhi on March 15, 2012. Minister of State for Finance Namo Narain Meena and the Secretaries of the Ministry are also seen.

 

 
 
 
 
 
 
 

RSS  |  Contact us

 

| Quick links

News

 

Subscribe to

Ummid Assistant

 

National

Science & Technology

RSS

Scholarships

About us

International

Health

Twitter

Government Schemes

Feedback

Regional

History

Facebook

Education

Register

Politics

Opinion

Newsletter

Contact us

Business

Career

Education

     

 

 

Ummid.com: Disclaimer | Terms of Use | Advertise with us | Link Exchange

Ummid.com is part of the Awaz Multimedia & Publications providing World News, News Analysis and Feature Articles on Education, Health. Politics, Technology, Sports, Entertainment, Industry etc. The articles or the views displayed on this website are for public information and in no way describe the editorial views. The users are entitled to use this site subject to the terms and conditions mentioned.

2010 Awaz Multimedia & Publications. All rights reserved.