New income cap for creamy layer soon

The National Commission for Backward Classes (NCBC) is likely to finalise its recommendations on the revised income ceiling for defining the creamy layer other backward classes (OBCs) by month-end.

The move may end the controversy over classification of the creamy layer (those who will not be eligible for the benefits that OBCs are entitled to).

The commission has fixed June 30 as the deadline for submitting its report to the government, say sources.

The NCBC has already received suggestions from 20 state commissions and is expecting response from at least eight more. Most states have asked for a revision in the income limit from Rs 2.5 lakh to Rs 4-6 lakh.

The creamy layer among OBCs was defined in 1993 with those with an income of Rs 1 lakh and less making the cut. It was revised to Rs 2.5 lakh in 2004. The creamy layer cannot claim benefits for OBCs like reservation in jobs and professional courses.

However, sources said divergent views emerged at a recent meeting that the central commission had with the state panels as Karnataka demanded a ten-fold increase in the ceiling from Rs 2.5 lakh to Rs 25 lakh and Madhya Pradesh demanding that the limit be fixed at Rs 10 lakh.

While 20 states promptly forwarded their recommendations at a conference of backward commissions held here recently, others had promised to get back, said Abdul Ali Azizi, member, NCBC.

Some states also suggested that properties that did not yield any income should not be included as a criterion.

This includes real estate properties that do not yield any earning and agriculture land where no cultivation is taking place.

"Things could have been completed much more smoothly had the state representatives come out clear on their stands and attended the meeting in full capacity," said a source in the NCBC.