The Odisha government on Thursday said its cheap rice scheme would not be affected after the Centre introduced direct cash transfer to beneficiaries.

"We do not feel that the state government's Rs 2 a kg rice programme will be affected. This is because the Centre has decided not to include food subsidies in the direct cash transfer system in the first phase," said state Finance Secretary J K Mohapatra.

Mohapatra said the direct cash transfer system would be implemented mostly in social security schemes like pension, scholarship and others.

"They have excluded food items being distributed among beneficiaries though PDS," he said.

The poor families in the state are now getting 25 kg of rice every month at the rate of Rs 2 a kg.

The finance secretary, however, said the direct cash transfer would be mostly effective in case of LPG distribution during the first phase.

Asked whether the direct cash transfer system could be effective in the state in view of the poor infrastructure here, he said: "The beneficiaries of MGNREGA in Odisha are now getting their payment through e-transfer. Therefore, direct cash transfer could be possible with little modification."

Finance Minister Rosanna Chara, however, said: "The Centre is hurriedly implementing direct cash transfer system without going into the details."