Govt hikes creamy layer ceiling to Rs 4.5 lakh

In a move aimed at benefiting maximum people among OBCs, which critics and oppositions can say a political stunt in an election year, the Central Government has decided to augment the income slab for creamy layer among Other Backward Classes (OBCs) from Rs 2.5 lakh to Rs 4.5 lakh.

The Cabinet also decided to open new Central Universities in 12 other states. Universities at Sagar in Madhya Pradesh and Chhattisgarh will get the status of Central University.

The decision was taken at Cabinet meeting chaired by Prime Minster Manmohan Singh on Friday.

This would enable more people from this category to get the benefit of reservations in government jobs and high educational institutions. Students seeking admission under the Central Educational Institutions Act, 2006, which provides 27 percent reservation for the OBCs, will also be benefited by the new Act.

The decision though not alter the admission process this year as under Supreme Court’s guidelines which said the vacant seats in OBC category this year to be filled by students of the general category. But certainly more students from creamy layer will be able to get benefit of raised income criteria next year.

The old income criterion had become meaningless in view of the rising prices of goods, the government said.

Broadcasting Minister Priyaranjan Dasmunshi said more OBCs will be bringing down under the new economic ceiling.

The proposal had been forwarded by the Ministry of Social Justice and Empowerment on the basis of recommendations of the National Commission for Backward Classes (NCBC).

Before reaching the new upper limit and submitting its report to the Ministry on July 01, the Commission took into account the recommendations of the Sixth Central Pay Commission, the all-India consumer price index, price rise and inflation rate, the monthly per capita expenditure of the OBCs, their economic conditions, and per capita national product.

The annual income ceiling for creamy layer among OBC was fixed at Rs 1 lakh in 1999; it was raised to 2.5 lakh in 2004 and now in 2008 it has been increased to 4.5 lakh.