Direct Cash Transfer scheme not a complex project: P Chidambaram Published: Monday, Dec 24, 2012, 18:17 IST  Place: Puducherry | Agency: PTI

Union Finance Minister P Chidambaram on Monday said the direct cash transfer (DCT) scheme to the targeted sections of people "will be a simple and error-free" arrangement with the utilisation of technology. Addressing officials of Puducherry government and various banks at a meeting organised by state level Bankers Committee here, Chidambaram said, "With the availability of banking technology, the scheme is not a complex arrangement but an easy programme." "Banking technology is a black box technology and there is absolutely no room for mistakes, corruption or human interference in the operation of the scheme," he said. The Centre was releasing as much as Rs 2,00,000 crore as subsidies under various schemes for the targeted sections across the country. The intention of the government was to ensure that the DCT scheme was implemented by the end of 2013 in the country as a whole. He asked bankers and officials to ensure that there was inclusion of beneficiaries in the scheme to provide them advantages of the 15 centrally sponsored schemes implemented in Puducherry. Chidambaram said he was confident that the DCT to beneficiaries linking Aadhar linked bank accounts would go on stream successfully on January 1 in Puducherry. He also reviewed preparations made by the banks and government departments as part of rolling out the scheme in the Union Territory, comprising Puducherry, Mahe and Yanam regions.

AADHAR BASED PAYMENTS ARE A BIG STEP FORWARD

Unique identification number (UID) or the Aadhar based cash transfers will take effect from January 2013 in 51 districts of India. This initiative is ultimately going to be a game changer in the fighting corruption particularly the petty one. This corruption involves payments of  National Rural Employment Guarantee Act (NREGA) wages, scholarship and pensions to non existing individuals, leakages and pilferage of subsidized food articles, kerosene and LPG gas to non existing persons. Though petty in nature, the impact of this corruption on the economy is huge as the loss amounts to something like 25000 to 30000 crores of rupees. Similar amounts gets wasted as a result of wrong classification of poor, wrong allocation of NREGA work, maintaining musters, identifying beneficiaries for scholarships and pensions etc. India aims at covering 600 million people under Aadhar by 2015. for such payments and that will be a day of reckoning for no legal beneficiary will have to dole out cuts to any person.
Aadhar is the only viable solution to the malaise of black money and corruption . The day India is in a position to link all asset forms to an Aadhar card, a new prosperous and powerful India will start emerging.

NREGA and UID: The Two Main Potential Harbingers of Prosperity in India

NREGA (National Rural Employment Guarantee Act) and UID (Unique Identification Number) coupled with E-governance can be real game changers in India's road to prosperity in the shortest possible time.India presently has 500 million Below Poverty Line (BPL) hungry mouths which are supposed to be a big liability on the nation. But thinking positively the same hungry mouths translate into 200 million adult working heads and that amounts to 1600 million working hours on a daily basis. So is it certainly not a drag as is made out in many government circles, it is in fact a much bigger asset not many countries on this globe can even dream of. The destiny of Indian nation now depends on the wisdom and sincerity of Indian polity and how it decides to perceive this fact, for the first perception is the road to gloom and destruction while the latter is a short cut to prosperity and fulfilling the dream of being a developed prosperous nation.

Indian government has no doubt noble thought process of working towards making the life livable for these masses with a variety of measures like providing proper food, house, safe drinking water, clean and sanitary conditions, rural roads, health care services and education and even work. To fulfil these missions  food subsidy, fuel subsidy, NREGA jobs and a host of other freebies and doles are being provided but in actual practice all these efforts of providing subsidised food and fuel, free midday meals and even a job are almost totally lost at the altar of corruption and corrupt practices. While the government spends its hard earned monetary resources, the designated beneficiaries get a small fraction out of it and that too many times in the form of sub standard adulterated and rotten food stuff. The government through a plethora of schemes  has opened too many avenues for individuals and mafias to reap undue advantage through pilferage, theft, benefit going to undeserving individuals and in many cases to non existent names. All this because of government's sole aim of undertaking these measures only for votes and without  real concern to the plight of India's poor citizens. Its lack of sincerity and inability to check corruption and management costs of these schemes only point out to some vicious hidden agenda.
This figure of 500 million BPL individuals is as it is exaggerated when we see so many non eligible names in   small checks carried out at district level. A fair estimation points to a figure of 400 million individuals needing assistance. A sincere effort in pure national interest would be to empower all BPL family heads financially in lieu of work and work alone to such a level that they can take care of all requirements of their family members viz. food, health care, education etc. Ensure a sum of Rs 1000/- per month to each individual at a total cost of Rs 400000 crores which translates into 3200 crores of work days ( @ 125/ day ) for 20 crore adults i.e. 160 working days per annum ( men and women have both included ). Doing away with subsidies, freebies and doles (and including the expenses involved in the proposed food security bill) completely by centre and states and making payments to individuals having UID only through banks can easily take care of this amount.

The following additional advantage will accrue

• Government's inefficient and scam ridden public distribution system  will no more be required.
• No bogus individuals and no unnecessary payments
• 3200 crores extra man days can do wonders for the country.
• Government as facilitator and not provider
• Banking facility to almost every citizen
• Only two bodies to be kept under checks and controls. One the BPL certification authority and the other  work certification authority.
• Such a large force comes into the realm of organised sector making providing them Healthcare and Education  a much easier job.
• All corruption in many aspects of life will be mitigated.
• And above all such a large section of society will live with self esteem and heads held high. 

To make such an important headway in NREGA and UID, the two main Potential Harbingers of Prosperity in India, government can in some way compensate financial organisations like banks and insurance companies so that all the benefits could reach the doorsteps of the poor millions of the country at the earliest. It must be ensured that no spanners are put in implementation of such magnificent schemes having far reaching effect on the destiny of India by any vested interests.

UID: The only Aadhaar for Good Governance in India

Last few days a lot of hue and cry was raised regarding Unique Identification Number (UID) project, the only viable aadhaar for good governance in India, regarding the matters of its efficacy and dangers to the national security. It is seldom that Indian Government comes up with a thought process which can in reality change the very shape of things to come.Luckily for the country the impasse has been resolved with the intervention by none other than the prime minister. There can be little doubt that an exercise of such a magnitude will not have shortcomings and loopholes but it is the duty of the government to plug those shortcomings and loopholes. The main purpose of both UID and  National Population Register(NPR) is to give a foolproof identity to each and every citizen of India and to ensure that all social programs of the government reach the target group effectively  without any leakage and pilferage at minimal cost to the exchequer in the shortest possible time and to help reduce black money generation and its recovery.
There are two main categories which need to be covered immediately if the government is aiming at giving a semblance of a good governance. Firstly, Below Poverty Line (BPL) families who are all having a voter card, supposedly a very authentic document and secondly financially better off strata of the society who have PAN, Passports, Public Sector Undertakings (PSU) and Autonomous body I cards, government service I cards and a voter card as well. With this kind of huge data bank already available in the country giving a biometric identity to all these groups should easily cover more than 95% of the population in a small time. The rest can be covered by making UID mandatory for property acquisition, vehicle registration, admission to schools and reaping benefits of government schemes.
The country will appreciate and will be grateful to the Indian polity if this exercise is completed on a war footing in about a year or two for the stakes are too high. After all the government's subsidy, social and welfare programs are worth more than Rs3,00,000/- crores annually and a leakage of about 50% as per latest study of the world bank is too large a figure not to merit war scale national mission attention. In fact a much higher figure of about 70% loss was mentioned by an erstwhile congress prime minister of the country.
Similarly keeping a tag on economic activity of the main generators and guzzlers of black money through e-governance and UID linking, a huge sum can be generated in the government kitty. The government by dilly dallying on not taking immediate effective steps in having a UID system in place is missing golden opportunity of propelling the GDP growth levels to mid teens.

Corruption, Black Money in India : Aadhar the only Viable Solution

Corruption amongst politicians, bureaucrats, technocrats, other government functionaries and corporate world is rampant in India. Though the cases that come to light through media everyday are a minuscule sample of the menace of Corruption, Black Money and Bad Governance, the government and the polity have shown scant concern in this regard. A few raids, some action on the part of vigilance authorities and once in a while expose by media efforts cannot produce any meaningful dent on the extent of corruption, black money and bad governance malaise which is deeply rooted in all aspects of Indian economy, governance and day to day lives of all Indians. To whatever extent we may reinforce our anti corruption machinery, judicial system and laws we can only manage to put a scratch on the problem. The real fight against corruption and black money will come through good governance and administrative action only.
Aadhar project of the Unique Identification Authority of India can be the real aadhar of the nation's fight against corruption and black money. The project was given concurrence by the government as an exercise to give identity proof to 1 billion Indians. Slowly and slowly when the total repercussions of the Unique Identification Number started unfolding themselves, the polity seems to have developed cold feet suddenly.Firstly because it takes away the punch from the slogan of inclusive growth and social, economic and political empowerment and secondly it puts their survivability in politics in question as major support to elections comes through these cadres and such tainted money. The amounts involved are simply mind boggling. A sum of Rs 1,50,000 crores which goes into corruption and black money through leakages, bribery and pilferage in welfare benefits such as subsidies, pensions, NREGA, India Awaas Yojna, mid day meals and Sarva Shiksha Abhiyan. After all these are the only sops that can be offered to their political loyalists at 2nd and 3rd level. In this country who wants to have power without any financial gains attached to it? Who wants to serve the nation and its masses free of cost? The UID project has come under attack from all flanks. The very basis of of unique identification number i.e. procedures for data collection and potential errors therein as well as concerns over privacy are being challenged. What kind of hidden agenda or ulterior motives are behind this, is any body's guess.

Real estate along with all other asset classes is the other main source of corruption and black money. The only viable solution seems to be through linking of all immovable and movable assets with UID number. These assets will include all commercial and residential property, all agricultural land, gold and jewellery, all vehicles ( commercial and private ), all luxury items, DMat accounts, investments in commodities, banks and mutual funds etc. etc.. Along with these linkages the following steps are also a must.

• Government should have the power to acquire about 5-10% of real estate deals in the secondary market by paying 10% premium to the declared value of the deal.
• Practice of power of attorney in respect of real estate should be abolished.
• All Discretionary powers in the hands of government functionaries should be withdrawn because in India they are always used for one's own hidden agenda and ulterior motives.

Once the investment avenues of ill gotten money are plugged, we can see a ray of hope in improving the living standards of Indian masses at a much faster rate.