New Delhi: The Empowered Group of Ministers (EGoM) in a meeting headed by Finance Minister Pranab Mukherjee has in-principle agreed to give direct cash subsidy to the poor for kerosene.

Union Petroleum and Natural Gas Minister Jaipal Reddy would soon call a meeting of Chief Ministers of all the states to discuss the implementation of this scheme.

As per the decision of EGoM, subsidies on kerosene given by the Centre would be directly transferred to the bank accounts of the poor.

Government plans to kick off this programme in states other than Delhi and Rajasthan from April 2012, sources said. A trial run of this programme would be implemented in Delhi and Rajasthan first from October 2011.

Under the direct cash subsidy to the poor for kerosene, a new bank account would be opened for the beneficiaries who get their allotment through Public Distribution System.

The bank accounts would be prepared on the basis of Aadhar Numbers and all the related records would be maintained by the state governments. At the time of purchasing kerosene, consumers would pay the full amount. The subsidy amount would be transferred to their accounts later.

(JPN/Bureau)