Income floor raised to over Rs 6 lakh a year

CCEA approved a proposal to allocate subsidised foodgrain this financial year to 105 mn families above the poverty line via PDS

More people from the Other Backward Classes (OBCs) would be able to get reservations in government jobs and admission to central education institutions.

The Union Cabinet on Thursday approved raising of the income floor for the ‘creamy layer’ (not eligible for reservation) from over Rs 4.5 lakh per annum to over Rs 6 lakh a year.

An official statement said the increase was in keeping with the increase in the consumer price index.

The OBC lobby within the Congress party had demanded further raising of the floor.

The income ceiling was introduced at Rs 1 lakh in 1993, revised to Rs 2.5 lakh in 2004 and Rs 4.5 lakh in 2008.

OTHER DECISIONS
PDS grain: The Cabinet Committee on Economic Affairs on Thursday approved a proposal to allocate subsidised foodgrain in this financial year to 105 million families above the poverty line (APL) via the Public Distribution System, entailing a subsidy of about 9,500 crore.    

"The CCEA has approved additional allocation of 4.18 million tonnes of wheat and 1.98 mt of rice to APL families," an official statement said.   

The grain will be provided at APL prices for ensuring a minimum allocation of 15 kg per family monthly in 22 states and Union Territories, and 35 kg per family monthly in 13 states and UTs, it said.  With a huge grain stock, the food ministry had proposed continuation of an extra allocation of 6.17 mt to APL families, to ensure each got 15-35 kg a month this financial year. Normally, the government allocates a minimum of 10.6 kg of foodgrain per family each month to APL families. Rice is sold at Rs 8.30 a kg and wheat at Rs 6.10 a kg.

Vizag port: The CCEA approved a project for upgrading the existing facility and creation of a new one at Visakhapatnam Port Trust for iron ore handling in two phases, on a design, build, finance, operate and transfer basis, at an estimated cost of Rs 845 crore.

The project will be taken up for implementation under the public-private partnership mode.

Coal shipping: The Cabinet also cleared a proposal to to give more freedom to state-run Steel Authority of India Ltd (SAIL) and Rashtriya Ispat Nigam Ltd (RINL) on choosing shipping lines. The two can now undertake direct chartering of ships, without going through the centralised chartering organisation under the ministry of shipping. SAIL and RINL import 14-15 million tonnes of coking coal annually.