Increasing Income Limit for OBC Reservation – Proposal sent to DOPT
National Commission for Backward Classes recommended Income Limit for OBC reservation to be revised from existing Rs. 6 lakh to Rs. 10.5 lakh per annum
GOVERNMENT OF INDIA
MINISTRY OF SOCIAL JUSTICE AND EMPOWERMENT
QUESTION NO 431
ANSWERED ON 23.07.2015
Annual income criteria for OBC
431 Shri Devender Goud T.
Will the Minister of SOCIAL JUSTICE AND EMPOWERMENT be pleased to state :-
(a) whether it is a fact that the annual income criteria for creamy layer for OBCs has to be revised once in every three years;
(b) if so, whether income criteria has been revised only three times since 1993;
(c) the reasons for not complying with the statutory obligation with regard to income criteria for OBCs;
(d) whether National Commission for OBC has recommended recently to increase the creamy layer from Rs. 6 lakhs to Rs. 10.5 lakhs; and
(e) if so, action taken on the above recommendation so far?
MINISTER OF STATE FOR SOCIAL JUSTICE AND EMPOWERMENT
(SHRI KISHAN PAL GURJAR)
(a) to (c): An Expert Committee set up in 1993 recommended for income criteria of Rs. 1 lakh per annum. The Expert Committee observed that since the Rupee value is bound to undergo change, the income criteria in terms of Rupees will accordingly stand modified with the change in value. The modification exercise may, normally speaking, be undertaken in every three years but if the situation demands, an interregnum may be less.
Keeping in view the recommendations of the Expert Committee, Government of India decided to constitute a Review Committee to consider the issue of modification of income criteria and circulated a Cabinet Note in March, 1999. The Cabinet approved constituting the Review Committee in its meeting on 27.11.2001. With the approval of the Hon’ble Prime Minister, the work relating to review the income criteria to exclude cream layer was entrusted to the National Commission for Backward Classes. The National Commission for Backward Classes (NCBC) submitted its report in January, 2004.
The income criteria were revised on 9.3.2004. Hence, there was no delay in effecting the first revision of income criteria. NCBC was requested to review in December, 2007 and they submitted their report in July, 2008. After inter-ministerial consultation and the approval of Cabinet, the second revision was effected in October, 2008. Again, in July 2011, NCBC was requested to review the same and they submitted a report in September, 2011. The Cabinet approved on 16.05.2013 the revision of income criteria from 4.5 lakhs to 6.00 lakhs and, accordingly the 3rd revision was effected w.e.f. 16.05.2013.
(d) & (e): The recommendation of the National Commission for Backward Classes in this regard was received and the same has been sent to Department of Personnel & Training.