INCOME CAP FOR OBC QUOTA HIKED TO `8L

The income limit defining creamy layer for OBC reservation has been raised by `2 lakh per annum even as the Union Cabinet approved setting up of a panel for sub-categorisation within other BCs for even distribution of reservation benefits.

The income limit defining ‘creamy layer’ for OBC reservation has been raised by `2 lakh per annum even as the Union cabinet on Wednesday approved setting up of a panel for subcategorisation within the other backward classes for even distribution of reservation benefits.

The government also ruled out having a relook at the present reservation system.

Finance minister Arun Jaitley told reporters here that the Union cabinet was formally apprised of the decision to hike the limit for central government jobs.

He said Prime Minister Narendra Modi had hinted in Assam recently that the bar defining creamy layer would be raised and the procedure of formally informing the cabinet about the decision was completed on Wednesday

The ministry of social justice and empowerment had proposed that OBC families which earn more than `8 lakh per year should be classified as ‘creamy layer’ — the ceiling which bars members of the other backward classes from availing reservations in employment.

Responding to a question, Mr Jaitley said a proposal to extend the decision to public sector undertakings was under “active consideration” of the government.

There had been three revisions of the creamy layer bar. It was fixed at `1 lakh in 1993 and hiked to `2.5 lakh in 2004 and `4.5 lakh in 2008. The present ceiling of `six lakh came into being in 2013.

Jaitley also announced the decision of the cabinet to set up a commission to work out sub-categorisation within other backward classes for a “more equitable distribution of reservation benefits amongst the OBCs”.

He said 11 states of Andhra Pradesh, Telangana, Puducherry, Karnataka, Haryana, Jharkhand, West Bengal, Bihar, Maharashtra, Tamil Nadu and Jammu region only of Jammu and Kashmir have already carried out sub-categorisation of the OBCs.

The proposed commission, to be set up under Article 340 of the Constitution, will submit its report within 12 weeks from the date its chairperson is appointed.

THERE HAD been three revisions of the creamy layer bar.

IT WAS FIXED at `1 lakh in 1993 and hiked to `2.5 lakh in 2004 and `4.5 lakh in 2008.

THE PRESENT ceiling of `6 lakh came into being in 2013.

11 STATES including Andhra Pradesh and Telangana have carried out sub-categorisation of OBCs.