(MENAFN- KNN India) Aadhar based payment of subsidies helped reduce number of frauds and save public money: Govt
New Delhi, Mar 21 (KNN) With the introduction of Aadhar-based payment of subsidies to the khadi artisans, government has saved over Rs 1.53 billion worth of public money, press note of the Khadi and Village Industries Commission said.
This Aadhar-seeded payment mechanism of Marketing Development Assistance (MDA) has reduced the number of frauds, ghost accounts and de-duplication thus maintained transparency and accountability, which has saved the billions of money.
With the implementation of this, nearly 503 institutions have stopped claiming subsidies for non-existent artisans.
This Digital India initiative has been conducted to target right person through Aadhaar cards.
Quoting the numbers, the KVIC said that in 2015-16, MDA of Rs 3.16 billion was claimed and given to 1,918 Khadi institutions but soon after the roll out of Aadhar-seeded payment mechanism it reduced to Rs 1.72 billion for 1,759 institutions in 2016-17 and further reduced to 1.63 billion for 1,413 institutions in 2017-18.
KVIC Chairman V K Saxena said 'this mechanism has weeded out almost 7 lakh fake artisans as the number of registered artisans was found 4.6 lakh instead of inflated 11.6 lakh thereby reducing the subsidy burden on the government.
He further added that the Swachchata Abhiyaan has led to creation of genuine data of artisans as well as the Khadi institutions which was not done earlier.
MDA is calculated at 30 per cent of the prime cost of production, out of this 40 percent is paid to the khadi-producing institutions, 40 percent to the artisans and 20 percent to the same institutions for giving discounts to customers. (KNN/YV)
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