Test runs boost hopes of switch to cash transfers
The government is set to step up its push for cash transfer of subsidies and adopt it as a policy doctrine in the run-up to elections, with two pilot projects validating the assumption that it would lead to significant savings for the government while enhancing benefits for users. A pilot project for cooking gas in Mysore run by state-run oil companies saw the number of connections dropping 40% from 35,000 to around 20,000 while a similar experiment for kerosene in Rajasthan's Alwar district resulted in consumption sliding by 80% from 80 kiloliters a month to around 14 kiloliters.