One of the priorities that have emerged in recent years is the need to strengthen India’s social safety net and improve the delivery mechanisms of poverty alleviation programs. This is to ensure that vulnerable groups can withstand unforeseen shocks to income and continue to access basic goods and services at affordable prices. The 2011-12 Budget has accordingly planned for increases in expenditure to meet these goals, and also recommended direct subsidy transfers to improve the efficiency and reach of welfare benefits for the underprivileged. This Interim Report of the Task Force for Direct Transfer of Subsidies proposes a general solution framework for the direct transfer of subsidies to beneficiaries, while also making specific recommendations for Kerosene,LPG and Fertilizers.