The government has evolved a new method to provide kerosene, cooking gas and fertiliser subsidies to the poor. They will provide these subsidies to poor by direct cash transfers on pilot basis. It is expected that government will start its new method before the end of current calendar year, 2011.

As per budget documents, petroleum and fertiliser subsidies add up to Rs 53,000 crore for this current year.

Nandan Nilekani has been assigned as the chairman of the Unique Identification Authority of India by the finance ministry to provide such subsidies straight individuals, families and farmers.

UIDIA has started assigning a unique identification number which will be required by poor people to get the direct cash transfers.

The task force appointed by finance ministry in this regard is required to submit the report within the next four months.

Finance ministry also said that this task force will be responsible for designing appropriate IT systems and alignment of IT systems with issuance of UID numbers. They will also bring changes in the administration and supply chain management.

Along with Nilekani, Finance minister Pranab Mukherjee has included Secretaries from the Departments of Expenditure, Financial Services, Chemicals and Fertilizers, Agriculture, Food and Public Distribution, Petroleum and Natural Gas and Rural Development in the task force.

The new system will be implemented on pilot basis within six months of the submission of the report.