Wednesday, July 14, 2010

Sonia's NAC clears pruned Food Security Act

NEW DELHI: Inadequate supply of foodgrain has forced the Sonia Gandhi-led National Advisory Council (NAC) to settle for a pruned National Food Security Act, at least for the time being.

Hamstrung by the problem of low procurement of paddy and wheat, NAC on Wednesday decided to limit implementation of the universal PDS in its first phase to one-fourth of the total administrative blocks of the country.

The decisions taken on Wednesday NAC come as a compromise between the competing demands of the Right to Food campaign and the Planning Commission and the food ministry. While the former had asked for complete universalisation, the Plan panel and the food ministry, it seems with tacit approval of top government leaders, had demanded a modest programme to keep the subsidy burden in check and because of uncertainties about procurement.

The meeting, sources told TOI, saw Sonia coming out in support of an enhanced and wider coverage under NFSA even as some members wanted to put a check on the subsidy burden it would lead to and limit the social security net. Subsidy should not be a concern, the Congress chief was quoted as saying as she batted aside reservations about universal coverage.

However, Sonia, who had pushed for expanding the reach of the scheme and even opposed reducing existing entitlements of those living above the poverty line, agreed that foodgrain supply had to be kept in mind.

The first phase will be implemented within a year of the bill's enactment, and the intent is to expand `universal' coverage to other blocks in phases in keeping with the availability of foodgrain.

The phased rollout of NFSA will require the government to provide 35 kg of foodgrain at Rs 3 a kg to almost all in one-fourth of the poorest blocks of the country. In these blocks, only the rich would be kept out.

In the rest of the country, roughly 45-50% of the population would get subsidized foodgrains, with Scheduled Castes, Scheduled Tribes and other socially and occupationally disadvantaged -- a category that will include HIV patients, homeless, destitutes, single women households and others -- being included automatically.

The entitlement of socially and occupationally diasvantaged groups bears the fingerprint of the NAC, as the government had initially opposed blanket coverage.

In urban areas, roughly one-third of the population will be able to avail cheap rice and wheat under NFSA. The criteria for inclusion of people in urban areas on the beneficiary list will be decided as per the Hashim committee report.

Provisions of the Mid-Day Meal scheme and the Integrated Child Development Scheme would also be turned into legal entitlements. Besides agreeing to set up community kitchens under the Act, the NAC also decided that special nutrition support programmes for vulnerable sections would be started in the first phase on a country-wide basis under Congress's big-ticket 'aam aadmi' scheme.

The Mid-Day Meal and Integrated Child Development Scheme will also be expanded to include destitutes, aged, disabled, infirm adults, single women and the homeless.

While it was decided that those living above the poverty line should be provided 25 kg of foodgrain under the scheme, the NAC could not conclude at what price.

The NAC in its future meetings will work on PDS and ICDS reforms, expanding agricultural production and procurement as well as detailing the principles agreed upon besides drafting provisions of the law.

TOI

RIL, financial shares push Sensex up by 167 pts

RIL, financial shares push Sensex up by 167 pts
MUMBAI, June 30: The BSE benchmark Sensex today recouped early losses to end the day higher by 167 points after a firm opening in European bourses buoyed the sentiment.

The 30-share index closed at 17,700.90, up 166.81 points, or 0.95 per cent, after RIL and financial stocks rallied at the fag-end of trading.

The National Stock Exchange’s wide-based 50-share Nifty Index added 1.07 per cent to finish at 5,312.50 points. Reliance Industries (RIL) ended up close to 2 per cent amid reports that the petrochemicals giant is close to signing a JV deal with US-based private equity and hedge fund giant DE Shaw. The deal, when signed, will see the Mukesh Ambani-led company entering into the financial services sector. Energy major RIL has been on gaining spree since petrol prices were deregulated last Friday, barring its 2 per cent loss yesterday when the markets were hammered.

PC wants Unified Command for anti-Naxal operations

PC wants Unified Command for anti-Naxal operations

NEW DELHI, July 14: In a fresh strategy to combat the Naxal menace, the government today asked Chhattisgarh, Jharkhand, Orissa and West Bengal to create a unified command for anti-Maoist operations and to appoint a retired Major General of the Army as its member.

The Centre will “request the state governments of Chhattisgarh, Jharkhand, Orissa and West Bengal to create a unified command for anti-Naxal operations and to appoint a retired Major General of the Army as a member of the command,” Home Minister P Chidambaram said addressing leaders of seven Naxal-affected states here. The meeting chaired by Prime Minister Manmohan Singh is being attended by chief ministers of Bihar, Chhattisgarh, Orissa, Maharashtra and Andhra Pradesh. While Jharkhand is being represented by its governor, West Bengal has sent a senior minister for the meet.