Lucknow: In a bid to do away with corruption in the public distribution system, Uttar Pradesh government plans to introduce cash food subsidy scheme of paying monetary compensation to below poverty line beneficiaries instead of foodgrains.

"The government has prepared a pilot project for Hardoi and Lakhimpur Kheri districts of paying the difference in subsidised foodgrains rates made available to the beneficiaries under the PDS and the market price directly in their bank accounts," Government sources here said.

"The proposal worth Rs 206 crore for these districts is being sent to the centre for clearance," sources said, adding that this would help do away with various discrepancies in the distribution system which have led to several scams.

This step is being taken on the lines of one adopted in Andhra Pradesh where a coupon system had been in force through which the food department directly reimbursed the difference to the shop owners.

It might be mentioned that a foodgrain scam worth Rs 30,000 crore had come to light during the previous government. The Mayawati government has already recommended a CBI inquiry.

Source : PTI