Govt may revise old-age pension rules

The Cabinet is likely to consider the proposal on Thursday,which aims to provide relief to aged citizens reeling under rising inflation.

This will be the first time since 2007,when the scheme was launched,that the pension amount is being sought to be increased.

The government had introduced the Indira Gandhi National Old Age Pension as a major scheme to provide income to senior citizens falling under the BPL bracket to sustain themselves. As of now,1.69 crore persons are beneficiaries under the pension scheme and the government would have to earmark funds Rs 1736 crore for the increase in beneficiaries once it approves the proposal for change in the rules.

Similarly to increase the pension for those aged 80 years or above from Rs 200 to Rs 500,the government would need to spend an additional Rs 953 crore,which is also expected to be vetted by the cabinet.

Any person who earns less than Rs 589 in urban areas and Rs 450 in rural areas is categorised as poor. “We have calculated that the total money required would be to the tune of over Rs 8900 crore,” a government official said

The rural development ministry’s proposal would mean additional coverage of about one crore persons under the direct subsidy scheme and also enhance their monthly income.

Any BPL person seeking to be a beneficiary under the pension scheme has to give an undertaking to the effect that he has no source of income.

Other issues likely to be considered:

* Bilateral investment promotion and protection agreement between the governments of India and Slovenia

* Extension of medical services to beedi workers under the Rashtriya Swasthya Bima Yojna

* Revival of the British India Corporation

* Reintroducing amendment to the NHAI Act to increase the number of full-time and part-time directors and sanction of additional post of CGM (Technical)