MUMBAI: The morning after the

Lok Sabha

passed

Sonia Gandhi

's pet

Food Security Bill

, industry is raising concerns about the effect this massive subsidy will have on the country's economy. The project is expected to cost the exchequer Rs 1,25,000 lakh crore per annum, and growing.

CII president

Kris Gopalakrishnan

said, "There are concerns (about the Bill). Such a large outlay at this point in time will definitely have a negative impact on the

fiscal deficit

. This needs to be managed. The larger concern is regarding the effective implementation of such a critical social agenda of the government."

Gopalakrishnan said the use of ration shops to channelise the subsidy raises question about the efficacy of the model. Targeting is another area that will need special attention. "CII hopes that the government will put proper focus on these aspects, mainly targeting the needy so they can benefit from this subsidy," he said.

CII agreed that food security is extremely important in a country like India where a significant section of the population lives below the poverty line.