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This paper is the first attempt to rigorously evaluate the short term effects of the 'Janani Suraksha Yojna' (Safe Motherhood Scheme), a nationwide conditional cash transfer program in India, launched in April 2005. Under the scheme, a woman delivering her child in a medical facility is provided monetary rewards. My difference-in-difference results indicate that in the initial one and a half years of its operation, the scheme did not have any effect on the disparity between the targeted and nontargeted states. In fact, the gap widened in this period, albeit marginally. But beginning from 2007, * This paper is a part of my doctoral thesis. Thanks to my advisors, Joshua Aizenman, Nirvikar Singh for their help and useful comments, and especially to Jon Robinson for continuous support. I am also thankful to Dr. Kaustubh Apte and Dr. Suhas Ranade for numerous discussions.

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