Scheme might begin only in 30 districts

With senior government functionaries, including Finance Minister P Chidambaram, favouring launch of direct cash transfers of subsidies in only those places fully ready for it, the actual number where the scheme would be started from January 1 is expected to be far lesser than even the 43 districts targeted at present.

The initial plan was to begin in 51 districts from that date but due to the Election Commission of India’s orders, eight districts in Gujarat and Himachal Pradesh had been taken out.

With less than two weeks to go, a close look at Aadhaar penetration in the selected districts shows it would be difficult to launch the scheme in more than 30 districts from January 1.

Officials in the know said the government was trying its best to begin in as many districts as possible. It was possible, they said, that districts not fully prepared on January 1 would be added in due course.

The four districts of Gujarat on the list in any case have a substantially lower penetration of Aadhaar and would take time to catch up. In the four in HP, however, the government can go ahead and launch the scheme after the results of the Assembly polls tomorrow.

The three in Rajasthan — Ajmer, Alwar and Udaipur — still have Aadhaar penetration of less than 20 per cent. The Aadhaar-based cash transfer system was launched by Prime Minister Manmohan Singh from Dudu, Rajasthan, on October 20.

In Maharashtra, the situation on Aadhaar penetration in four of the five selected districts shows the 80 per cent minimum level would take time.

In Jharkhand, from where one of the first pilot projects was started for cash transfers, Aadhaar reach is far below 80 per cent.

Officials, however, noted the work on Aadhaar enrolment, opening bank accounts and seeding of beneficiary data had been initiated on a “war footing” and the required ground was expected to be covered in all 51 districts by the end of January.