Prime Minister Atal Bihari Vajpayee on Monday committed his government to food and financial security for poor sections of the society and senior citizens saying every step would be taken to improve the delivery mechanism for providing grains at the cheapest possible rates.

Launching the insurance-linked pension scheme for senior citizens, as announced in the Union Budget for 2003-04, Vajpayee asked the finance and health ministers to ensure effective implementation of the scheme, which gives the policy holders a steady stream of 9 per cent return, irrespective of the fall in interest rates in the country.

The pension scheme -- Varishtha Pension Bima Yojana for senior citizens -- is open to any individual over the age of 55 years.

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Commenting on delays and lapses in the announcement and implementation of various schemes announced in the budget by the previous governments, Vajpayee asserted that his government was making a special effort for effectively implementing the schemes announced by it and the launch of the pension scheme was an example of it.

Vajpayee said if there were reports of any starvation deaths in the country it was not due to non-availability of foodgrains.

"The defect, if any, lies with our distribution system. Today we are able to provide food to the poor at the cheapest rate anywhere in the world," he said, and added that government's ongoing Antyodaya Scheme to provide subsidized food to the poor was meant for food security.

Under the pension scheme, to be implemented by the Life Insurance Corporation of India and other national insurance companies, for which they would be compensated through budgetary support, the policy holders would have to pay only a rupee a day for getting themselves insured.

Underscoring the importance of health schemes in any economy, Vajpayee said: "Elections are contested in many nations on the issues of health and governments change on such sensitive matters. In India too, health is an important issue. I am confident that officials of insurance companies and health ministry will discharge their duties effectively and help people," he said.

Vajpayee said the National Democratic Alliance government was also criticised and charged with inability to make the schemes reach the beneficiaries.

He said the quick and expeditious implementation of the pension and health insurance scheme proved otherwise.

The prime minister described life as a boon and said health and economic problems should be tackled for the aged.

"There used to be one family norm where the old people were treated with honour. But due to economic problems, there is a change and that is where an effort has been made to tackle it in the current situation," Vajpayee said.

On the benefits of the pension scheme, he said it remains to be seen how far it is successful and there is no harm in trying new experiments.

He said the government was committed to ensure that the schemes reach the poor.

Finance Minister Jaswant Singh said the new health scheme was targeted to bring in at least 70 lakh (7 million) families under its cover.

Vajpayee said though international reports have mentioned about a change in the pattern of living in India, they have not accepted the fact that the economic situation in the country has improved considerably.

Pointing out that this cannot be merely linked to the expenditure pattern, he said on the whole the standard of living has improved in the country.

Vajpayee criticised earlier governments for not taking their schemes announced during budget seriously and said sometimes these scheme either did not see the light of the day or were relaunched under new names.

On the current food situation in India, Vajpayee said he remembered the days when he used to go to his village during holidays and had to be content with rotis made of jowar or maize.

He said it used to be taken as a festive occasion when rotis were made of wheat.

"(Now) there is wheat everywhere (in the country) and it is very cheap. No country can make available wheat and rice this cheap," he said adding this was 'food security.'

Vajpayee said reaching the foodgrain to the poor was as important as improving the productivity in the agriculture land.

"It is not true that people (in India) are dying due to starvation. If there is any problem of shortage it is not because of non-availability," he said adding the foodgrains have been made cheap for their easy availability and distribution.

Vajpayee said people should not feel themselves as a burden when they start ageing.

The prime minister also had a dig at the sceptics of insurance schemes launched by the government who said the government could go bankrupt due to these schemes.

"It is not true. People are taking polices and are giving premiums. The officials should assist them and further develop people to people contact," Vajpayee said. "We should stress on implementation," he said.

In his address, Finance Minister Jaswant Singh made it clear that the spread of the health insurance schemes would be monitored closely and its impact assessed in the rural areas.

Singh expressed concern that the insurance related funds accounted to only 2 per cent of the GDP and it should be enhanced to over 10 per cent of GDP.

The finance minister said there is always scope for improving such schemes.

Singh said the investor in the old age scheme can take back his investments prior to the completion of the stipulated 15 years if he so desires.

He said 75 per cent of the premiums can be taken back after three years for which interest rates will be determined from time to time. Singh said the current interest for such a piecemeal withdrawal would be 10.5 per cent.

All those in the age group of 55 and above are entitled to investments under the Varishtha Pension Bima Yojana and will earn an interest rate of nine per cent per annum.