Modi Cabinet Decision: Indira Gandhi's Name Dropped From Three Central Pension Schemes
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In a landmark policy restructuring, the Union Cabinet chaired by Prime Minister Narendra Modi has formally cleared the extension of its flagship National Social Assistance Programme (NSAP) through 2031, while removing the name of former Prime Minister Indira Gandhi from three longstanding national pension sub-schemes. The overarching welfare umbrella has been rebranded as the Prime Minister’s Social Assistance Scheme, backed by an allocation of ₹53,428 crore. The initiative delivers enhanced monthly financial assistance to persons with disabilities alongside relaxed benchmark disability thresholds aligned with modern statutory standards.
Rebranding Overview: Old vs. New Names of Social Security Sub-Schemes
The decision aligns three core welfare initiatives under a unified nomenclature, replacing previous nomenclature with direct national program titles:
| Serial Number | Old Scheme Name | New Scheme Name |
|---|---|---|
| 1. | Indira Gandhi National Old Age Pension Scheme | PM Old Age Pension Scheme |
| 2. | Indira Gandhi National Widow Pension Scheme | PM Widow Pension Scheme |
| 3. | Indira Gandhi National Disability Pension Scheme | PM Divyangjan Pension Scheme |
This rebranding follows an earlier administrative precedent set in December, when the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was rechristened as the Vikasit Bharat - Guarantee for Employment and Livelihoods Mission (Rural), consolidating welfare identities across central rural and social security portfolios.
₹53,428 Crore Outlay to Protect 32 Million Vulnerable Citizens Until 2031
The financial reinforcement guarantees continuous fiscal backing for the nation's most vulnerable demographic segments:
Massive Budget Allocation: The Union Government has committed an expenditure of ₹53,428 crore over the next five-year lifecycle ending in 2031.
Extensive Beneficiary Base: The scheme provides direct financial subsidies to roughly 32 million beneficiaries across India, targeting indigent senior citizens, widowed women, and differently-abled individuals living below poverty benchmarks.
Seamless Benefit Transfers: Direct Benefit Transfer (DBT) mechanisms will continue disbursing pensions directly into Aadhaar-seeded accounts to prevent leakage and administrative delays.
Big Relief for Divyangjan: Monthly Assistance Hiked and Disability Threshold Slashed to 40%
The most substantial operational reforms focus on persons with disabilities, easing entry barriers while increasing monthly monetary support:
Monthly Pension Hike: For persons with disabilities aged between birth and 79 years, the central monthly assistance increases from ₹300 to ₹375 per month.
Super-Senior Category Revision: For elderly divyangjan aged 80 years and above, the monthly allocation rises from ₹500 to ₹625 per month.
Benchmark Criterion Relaxed to 40%: The qualifying disability threshold has been lowered from the previous 80% to 40%, aligning the scheme with the Rights of Persons with Disabilities Act, 2016.
Statutory Compliance and Impact: The 2016 Act stipulates that financial aid for differently-abled persons must exceed assistance for other categories by at least 25%. This revision brings over 27.48 lakh new divyang beneficiaries into the central pension safety net.
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