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  1. 1. Team Details: Concerned issues A Brief Overview With Solution
  2. 2.  PDS Accounts For 2.4% Of National GDP And Works with a network of 0.46 million FPS distributing SFA’s among 222.20 million families..  57% of the PDS food grain does not reach the intended people (UIDAI, 2009)  For every ₹4 spent on PDS, only ₹1 reaches the poor  76% of population had nutrition consumption below the norm of 2400 calorie  All is not well in PDS  Main Reasons For Vanity Of PDS.. • Approx 20746 Crores₹ Loss In PDS in Corruption Presumptions: Corruption,Bribe and Loose System  Viability Of FPS • Only 39 % Of FPS Make Positive Net Income Over Reccuring Cost Presumptions: a) Strength Of Ration Card Of FPS b) Door Delievry and Rentals c) Margins and turnovers d) Ignorance of consumer interest by supplier  Consumer Offtake And Its Determinance Causes: a) Lack Of Awareness b)Problem In Delievery Mechanism c)No Public Access for Complain d) Offtake By APL Is Negligible
  3. 3. Leakage and Diversion 36.38% Leakage And 21.4% Diversion To Unintended Beneficiaries Causes:a)Inclusion And Exclusion Errors b)Approximately 16% Ghost Cards c)Improper BPL Identfication Survey Storage And Procurement Out Of 36million tons procurement, Offtake Is Only 5% Causes : a) Lackadaisical Approach of State Government b) Insufficient Godowns For Stock Around 23% Of All Fair Price Shops (FPS) Are Not Viable And Survive Solely Due To Leakages And Diversions. Only Around 39% Of The FPS Make Positive Net Income Over Recurring Costs. Bogus Ration Cards Estimated To Be Around 16.7%
  4. 4. An Approach To Reach High Above The Standards In PDS The National Food Security Act – “that will provide a statutory basis for a framework which assures food security for all. Every family below the poverty line in rural as well as urban areas will be entitled, by law, to 25 kilograms of rice or wheat per month at Rs.3 per kilogram.”. How this will be achieved? IMPLEMENTING IDEAS  Synchronization with UIDAI , Creation of Benificiary database and IT based solution.  Systematic changes through formation of vigilance committee and effective enforcement of commodities act. Results in  Technological Advancement  Monitoring Of Government Machinery
  5. 5. Technological Advancement In PDS Fully Inclusive Enrolment Process Enrolment of identified family member by enrolling them into UID . It should appoint multiple registrars. One Aadhar = One Benificiary Aadhar is a unique number and a resident can have only one number use to verify his identity. Ration Card Registration The resident who wants to apply can approach any government body such as Panchayat office , CSC or can register from their own mobile phones Residents Enrollment agencies Registrars UIDAI Ration card management system, an individual benificiary system, offtake analysis system and a full featured MIS system.
  6. 6. Aadhar Linked Payment  State Govt. can channel subsidy to Aadhar enabled bank account and benificiary can access this accounts through Aadhar authentication. Portal User Interface Mobile User Interface External API &Data Feeds UI Forms & Reports Extensions State specific business rules & workflow extension Engine Database Extension Information, Communication &Technology Infrastructure  It need to deploy all the key offices of food department .  Central data center could be collocated with the state data center and state wide area network. Aadhar & PDS: A Synergic Partnership
  7. 7. Proposed IT Based Solution Approach  Identifying “Physical Theft” using GPS on trucks.  Tracking their movement and Electronic Weighing bridges.  Monitoring movement of food grains from FCI to Civil .  Supplies Corporation using mobile phones/gadgets.  Ration Card data should be digitalized by developing a common software with the help of institutional mechanism to undertake the complex task of conceptualizing , developing and maintaining the IT systems on a continuous basis.  Self-service inquiries through mobile phones.  A toll-free contact centre for PDS enquiry.  Online account status on the internet will empower beneficiaries.  Online account status on the internet to empower beneficiaries , establishing a direct and transparent grievance redressal channel.  All FPSs with electronic billing machines .
  8. 8. Monitoring Of Government Machinery VIGILANCE COMMITTEESMORE REALISTIC PDS Clear delineation of responsibilities and functions of each position connected with PDS; provide benchmarks for performance levels and introduce the concept of personal liability in case of lapses Identification of genuine benificiaries by time bound door to door drive District-wise vigilance committees may be constituted, vesting them with appropriate powers, functions and responsibilities The Anti Hoarding Cell should be headed by an officer holding the rank of not less than a Deputy Commissioner of Police with a “Special Flying Squad” also constituted into it
  9. 9. Effective Enforcement Of Commodity Act  Action should be taken without loss of time to seal the FPS if found contravening statutory provisions.  A Fast Track Court should be constituted in respect of cases pertaining to violations of Essential Commodities Act, 1955.  The Police Department should be directed to exercise their powers of search and seizure without exception. Incentive should be given to FPS dealers for selling other commodities in conjunction with SFAs. Accountability should be fixed for any delay in delivery of SFAs. Doorstep delivery will relieve the FPS owner of the burden of paying a sum of Rs. 15/- per Quintal towards transport of BPL stock which amount automatically increases his profit. Step Towards Success Viability Of PDS  High level of monitoring is required for the presence of food stamp scheme  Possibilities of exclusion should be minimum as it can cause serious nutritional risk for the deprived  Proper reimbursement system should be in place to create incentive for the Shopkeepers SYSTEMATIC CHANGES
  10. 10. Current system Proposed system Beneficiary Identification, Inclusion/Exclusion errors Addressing diversion during movement , lifting etc. Confirmation of delivery in last mile Tracking movement of goods, inefficient inventory management Accountability and monitoring FPS misbehavior-under- weighing, extra charges, poor quality, etc. IMPACTS & REACH TECHNOLOGICAL BARRIERS such as…  Cyber crime , Slowed down servers, Data theft  SMS service & alerts access difficult for BPL people  Unawareness and adoption of technology will prove to be a big headache  Need of more technical skilled workers  Funding and revenue problems such as raising loans & availing grants ADVANTAGES  Better human capital, economic growth, , decrease in poverty & hunger, social and political stability.  Clear identification of benificiary , enabling individual entitlements , exclusion of fake and duplicate Ration Cards Addressing Diversion & Leakages  Ensuring zero proxy withdrawls.  Providing benificiary with portable entitlement
  11. 11. APPENDIX  A document that details the on boarding of registrars at UIDAI:   Welfare scheme:   Department of Food and Public Distribution :   JUSTICE WADHWA COMMITTEE REPORT ON PDS:  Report on the State of Tamilnadu  Report on the State of Gujarat  Report on the State of Chhatishgarh  Report on Computerization of PDS operations REFERENCES