Plan panel estimate on BPL families in 7 days: Montek

The Planning Commission today said it will in a week submit assessment of the number of families living below poverty line (BPL) and hinted that increase in numbers would result in rise in food subsidy.

"We are looking at the Tendulkar Committee report and we will submit our assessment of the report and recommendation to the government probably in the next seven days," Planning Commission Deputy Chairman Montek Singh Ahluwalia told reporters here.

An Empowered Group of Ministers (EGoM) has asked the Commission to provide exact definition of BPL families who would be entitled to a specified quantity of rice or wheat every month under the proposed Food Security Bill.

"If we implement the Tendulkar Committee report, the number of poor household will increase from 6.5 crore to 7.4 crore or so ... That will increase the subsidy burden," he said.

India's Food Subsidy Bill is estimated to have crossed Rs 72,000 crore in 2009-10, a 65 per cent jump from the previous year, mainly due to increased procurement and rising cost of foodgrain.

The subsidy, given by the Centre to procurement agencies like the Food Corporation of India, is to cover the difference between buying and selling prices.

Ahluwalia, however, asserted that the increase in the number of BPL families would not impact the government exchequer.

"I don't think that burden alone is difficult to manage. The budget as a whole we have to balance... If we limit the increases what is essential, I don't think that would affect the overall fiscal balance," he said.

The EGoM has cleared the Bill on March 18 but the same was sent back to it amid speculation that UPA chairperson Sonia Gandhi wanted some key changes in the draft.

These included raising the quantity of highly subsidised rice or wheat to 35 kg per month for each BPL family, from 25 kg proposed in the draft Bill, and widening the scope of the beneficiaries to women, children and other sections of the society who don't figure in the official BPL list.