• Page last updated on: 07 March 2019
  • Skip to Main Content | Screen Reader Access | A A+ A++ | |
  • A
  • A

Schemes relating to PDS

1. End to End Computerization of PDS Operations Scheme

As part of efforts being made to bring in reforms in the Public Distribution System and to improve the distribution of foodgrains across the country, the Department of Food and Public Distribution, in association with all States & UTs, is implementing a Plan Scheme on "End-to-end Computerisation of Public Distribution System (PDS) Operations”. The scheme is being implemented on cost sharing basis with States/UTs under the XII Five Year Plan 2012-17. The Scheme was approved by the CCEA in October 2012. The Department conveyed administrative approval for the scheme to all States/UTs on 10.12.2012. The Scheme has been declared as a Mission Mode Project (MMP) by the Government. National Informatics Centre (NIC) is the Technical Partner under the scheme. Total project cost approved by CCEA is Rs. 884.07 Crore, which includes Government of India’s share of Rs. 489.37 Crore and States/UTs share of Rs. 394.70 Crore.The costs are being shared on 90:10 basis in respect of North Eastern States and on50:50 basis with other States/UTs. (Since some of the States/UTs could not complete all of the activities under the scheme within the timelines of the plan scheme, therefore due to this reason, the Government has extended the validity of the by 1 year (i.e. up to 31st March 2019, without any escalation in the project cost of the scheme).

Following are the key activities and their expected outcomes under Component-I of the scheme:

i. Digitization of Beneficiary Database– Enable correct identification of beneficiaries; removal of bogus cards and better targeting of food subsidies

ii. Online Allocation of foodgrains– System generated allocation of foodgrains to bring transparency in allocation of foodgrains, up to the Fair Price Shops level.

iii. Computerisation of Supply Chain Management– Timely availability of foodgrains to intended beneficiaries at FPS; check leakages/diversion

iv. Grievance Redressal Mechanism and Transparency Portals– Introduce transparency & public accountability in the implementation of TPDS through transparency portals, online grievance registration and toll free helpline numbers.

Activity-wise progress under the scheme is summarized as below:

i. Complete digitization of ration cards under NFSA in all States/UTs. Ration card details are available on transparency portal of all States/UTs.

ii. Online Allocation has been implemented in34 States/UTs (except Chandigarh and Puducherry which have adopted DBT Cash Transfers scheme).

iii. Supply-chain has been computerised in25 States/UTs.

iv. Transparency portal are implemented in all States/UTs.

v. Grievance redressal facilities (Online Grievance Registration System / Toll-free helpline numbers (1967/1800-series) are available in all States/UTs

Further, to identify and weed-out duplicate/ineligible beneficiaries, and to enable rightful targeting of food subsidies, all States/UTs have been requested to seed Aadhaar numbers in Ration Card database. At present overall seeding stands at 85.54% at the National level. Also, in pursuance of the provisions in the Section-7 of the Aadhaar Act 2016 this Department has notified the use of Aadhaar to receive subsidised foodgrains or Cash transfer of food subsidy under NFSA, on8th February 2017 (as amended from time to time).

As an outcome of digitization of RC/beneficiary records, de-duplication due to Aadhaar seeding, transfer / migration / deaths, change in economic status of beneficiaries, and during the run-up to and implementation of NFSA, a total of 2.75 Crore ration cards have been deleted/cancelled in 29 States/UTs. Based on this the Government has been able to achieve an estimated ‘Rightful Targeting of Food Subsidies’ of aboutRs. 17,500Crore per annum.

Under the Component-II of the scheme, while in consultation with NIC (Technical Partner for the scheme), and Unique Identification Authority of India (UIDAI) this Department has prepared guidelines for the automation of Fair Price Shops, and have shared with all States/UTs. The FPS automation involves installation of electronic Point of Sale (ePoS) devices at FPSs for – authentication of beneficiaries, recording of sales to beneficiaries, and uploading of transaction data in a central server. As per the said guidelines, NIC is entrusted to develop software for ePoS device and overall solution and this Department has signed a Memorandum of Understanding (MoU) with STQC Directorate for testing of PoS/Mobile terminal device. As regards financial assistance, Government has approved an FPS dealers’ margins @ Rs. 87/quintal to State/UT Governments under NFSA, which alsoincludes reimbursement of Rs. 17/quintal for their expenditure towards purchase and operations of ePoS devices at their FPSs. Such expenditure would be shared between Centre and State/UT Governments on 75:25 basis for Special Category States/UTs and on 50:50 basis for General Category States/UTs. So far, more than3.87 Lakh FPSs are automated across the country. As a result, State/UT Governments are able to reduce ghost lifting, and are able to achieve rightful targeting of food subsidies by authentication of eligible beneficiaries, improvement in service delivery, weeding out bad FPSs, etc.

2. "Integrated Management of Public Distribution System” (IM-PDS) Scheme

Further to sustain the reforms brought in by the ongoing ‘End-to-End Computerization of PDS Operations’ scheme and to introduce new reforms, the Department of Food & Public Distribution has launched a new Central Sector Scheme –"Integrated Management of Public Distribution System” (IM-PDS), to be implemented in all States/UTs during 2018-19 and 2019-20 at a total cost of Rs. 127.30 Crore. Following are the major objectives of this scheme –

a. Implementation of nation-wide portability in food grains distribution

b. Creation of national level data repository for de-duplication of beneficiary data (Aadhaar based)

c. Use of advanced data analytics techniques to bring about continuous improvements

3. Assistance to state agencies for intra-state movement of foodgrains and fps dealers margin under nfsa:

Section 22(4) (d) of NFSA provides that "Central Government shall provide assistance to the State Governments to meet the expenditure incurred by it on intra-State movement, handling of foodgrains and margins paid to fair price shop dealers, for distribution of foodgrains allocated for the entitled persons and households”.Food security (Assistance to State Government Rules) 2015 was notified in 2015 to fulfil the above obligation of the Act. The scheme "Assistance to State agencies for intra-State movement of foodgrains and FPS dealers margin under NFSA” that emanates from the above provision of NFSA, provides assistance under three components namely (i) Intra-State transportation and handling of foodgrains (ii) FPS Dealers’ basic margin and (iii) Additional margin to FPS Dealers for sale through electronic point of sale devices (ePoS).

Provision for central assistance for intra-State movement of foodgrains and FPS dealers margin has been made for the first time under NFSA. Under erstwhile TPDS, State Governments were required to either meet this expenditure on their own or pass it on to beneficiaries (except AAY beneficiaries). This provision under NFSA aims to (i) Ensure availability of foodgrains to beneficiaries at fixed rates. (Rs.3/2/1 per kg for rice/wheat/coarse grains respectively) (ii) Reduce leakages and diversion of foodgrains by ensuring a reasonable income to the FPS dealers (iii) Facilitate availability of foodgrains in difficult areas through bearing some of the cost of intra-State transportation and distribution of foodgrains to these States at higher rates, with a higher level of Central Assistance than that provided to general category states.(iv) Encourage End-to-end Computerization of TPDS Operations through providing margins for e-PoS machines to promote computerization of supply chain management system.

Central assistance is provided as per approved norms with 50:50 cost sharing in respect of General category states while for North eastern/hilly/island states, 75% cost is borne by the Centre

4. One- time assistance to state food commissions

Section 16 of the National Food Security Act, 2013 (NFSA), notified on 10.09.2013 provides that every State Government shall, by notification, constitute a State Food Commission for the purpose of monitoring and review of implementation of the Act. The State Food Commission shall consist of a Chairperson, five other Members and a Member-Secretary with associated administrative and technical staff. (2 women and SC/ST). Section 18 of the Act provides that the State Government, if considers it necessary, by notification, designate any statutory commission or a body to exercise the powers and perform the functions of the State Commission. Section 19 provides that two or more States may have a joint State Food Commission with the approval of the Central Government.

In case a State decides to set up State Food Commission on exclusive basis, Central Government provides one time financial assistance for non building assets for State Food Commission under the Scheme on "Strengthening of PDS & Capacity Building, Quality Control, Consultancies & Research". The assistance would be for non-building assets such as furniture, office, equipment, computers etc. These may include computers, air-conditioners, photocopiers, Fax machines, telephones, EPABX system, tables, chairs, storage units etc. No assistance will be provided for any construction activity or any recurring expenses.

Only those States/UTs will be eligible for financial assistance which have (i) constituted the State Food Commission, as per provisions of NFSA, on an exclusive basis, (ii) created posts of necessary staff for proper functioning of the SFC, (iii) notification constituting the State Food Commission has been issued. The proposal for assistance may be prepared by the State Government/UT in consultation with the State Food Commission, giving complete details of the posts created, which shall include name and number of posts. The maximum financial assistance under the scheme is Rs. 50 lakh for a State/UT. The assistance would be released in two instalments on approval of the proposal by a Departmental Committee. 75% would be released as 1st instalment and after submission of Utilization Certificate, 2nd instalment of 25% would be released.

5. Publicity-Cum-Awareness Scheme

Plan scheme "Financial Assistance to States for Generating Awareness amongst TPDS beneficiaries about their entitlement and redressal mechanism" is a component of 'Strengthening of PDS & Capacity Building' under which financial assistance is given to States based on the proposal received from them to generate awareness amongst the TPDS beneficiaries about their entitlement and redressal mechanism.

The main objective of this scheme component is to launch an effective, subtle, sustained and intensive awareness campaign, impact of which could reach the urban as well as rural and remote areas.

Out of the total amount approved for the scheme, 80% share will be borne by the Central Government in two equal installments of 40% each and remaining 20% by the State Government. The Department may utilise upto 25% of the total fund earmarked under the scheme for creating awareness about the schemes of the Department.