Arun Jaitley confirms commission to examine sub-categorisation of OBCs, hikes creamy layer ceiling to Rs 8 lakhs

Union finance minister Arun Jaitley on Wednesday revealed that the Cabinet will soon set up a commission to examine sub-categorisation of Other Backward Classes (OBC) in the central list of reserved categories.

Jaitley also raised the annual income ceiling that would decide the "creamy layer" in OBC from Rs 6 lakh to Rs 8 lakh, for those seeking reservations in central government jobs.

A Commission will be set up to examine sub-categorization of OBCs: Arun Jaitley pic.twitter.com/zqsYqytSgb

— ANI (@ANI) August 23, 2017

File image of Arun Jaitley. AFP

Addressing the media after Cabinet meeting on Wednesday, Jaitley added that a proposal to extend the decision to public sector undertakings was under "active consideration" of the government.

He further added that over 11 states in India including Andhra Pradesh, Telangana, Jharkhand, West Bengal and the Jammu region in Jammu and Kashmir already have such categorisation in state government jobs, however, there is no sub-categorisation in the central list.

According to ANI, the proposed commission will submit its report within 12 weeks from the day a chairperson is appointed. The main task of the commission would be to examine the extent of inequitable distribution of benefits of reservation among caste and communities which would include the broad categories of OBCs included in the central list.

According to The Times of India report, the National Commission for Backward Classes (NCBC) in its report to the government had recommended sub-categorisation within the OBCs into three categories into Extremely Backward Classes (Group 'A'), More Backward Classes (Group 'B') and Backward Classes (Group 'C').