New Delhi: The Centre on Friday decided to make distribution of ration free of cost to 81.3 crore people under the National Food Security Act (NFSA) for one year.
Union Food Minister Piyush Goyal said making ration free under National Food Security Act will cost about Rs 2 lakh crore and the government will bear this cost.
It is to be noted that under NFSA, also known as the food law, the government currently provides 5 kilogram of food grains per person per month at Rs 2-3 per kg.
The families covered under Antyodaya Anna Yojana (AAY) get 35kg of food grains every month.
Under this Act, rice is distributed to the poor at a rate of Rs 3 per kg and wheat at Rs 2 per kg.
Talking to the media about the decision taken by the Union Cabinet, Piyush Goyal said that the Centre will bear the entire cost of providing free rations under NFSA and added that the annual cost to the exchequer is estimated to be around Rs 2 lakh crore.
Meanwhile, the Central government has decided not to extend the free ration scheme Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY), which ends on December 31.
Under PMGKAY, five kilogram of ration per person per month is provided free to 81.35 crore beneficiaries covered under NFSA. This is over and above the monthly distribution of highly subsidised food grains under NFSA.
Notably, the government officials termed the latest Cabinet decision as a "new year gift for the country's poor" and said that over 80 crore people will now get free ration under the Act.