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  • 1. Team- Samadhan IIM Lucknow Niraj Agarwal | Rohit Bhagat | Utpal Meena | Mitesh Chauhan | Neha Poonia
  • 2. Problem recognition • High exclusion and inclusion errors – High exclusion error results low coverage of BPL households – High inclusion error results burden on government • Leakage during transportation or due to existence of ghost cards • Delay in receiving goods • Unequal distribution of ration cards between APL and BPL holders • Increasing transportation cost • Low commission and blockage of working capital Total leakage Leakage through ghost cards Source: Planning Commission. (2005). Performance Evaluation of Targeted Public Distribution System (TPDS) Targeting errors
  • 3. Proposed method for minimizing exclusion error • Based on Vulnerability criteria method of consumer expenditure survey of NSS • Household is defined as vulnerable if it bears at least one of the following criteria: – households do not own a dwelling unit – households that do not own any land and are not self-employed in non-agriculture and whose no member is a regular salary earner – where members of the households primarily work as agricultural and other labour having only homestead land with no regular salary earner – households that hold less than or equal to 2 ha of standardised cultivable land with no regular salary earner and primarily engaged in agricultural and other labour activities – households belonging to scheduled caste and scheduled tribe – households which spend less than Rs 216.29 per capita on clothing during a year • A value of “one” when a household had any of these possession and “zero” in an otherwise situation is assigned to prevent complete substitutability across the set of these criteria • Score of the ith household in all the six dimensions are added to arrive at an aggregate score • Aggregate score expresses the extent of a household’s vulnerability by the number of dimensions Reference: Errors of exclusion and inclusion, Conference, Institute for Social and Economic Change, Bangalore Inclusion Exclusion errors Food grain allocation Food grain movement Ration card management
  • 4. • Reducing possibility of reducing few deserved households • Attribute to be included in BPL list: – single woman member (in most cases this would be either widow, divorced/separated, or unmarried) – disabled person as a single breadwinner from casual works – no member above the age of 14 years age – any member works as a bonded labour – destitute characteristics Proposed method for minimizing exclusion error Minimizing inclusion error • Proper verification of the applicant for the ration card, an effective PMT • It will be minimum when integrated with UID • Self-targeting technique Community based survey can help in reducing both exclusive as well as inclusive error, which have been practiced in African countries and can be pilot tested in India Inclusion Exclusion errors Food grain allocation Food grain movement Ration card management
  • 5. Existing: Food Grain Allocation Levels Dept Generates District wise Food Grain Allocation Allocation Letter is dispatched to each District DC/DSO District prepares the FPS wise allocation on the basis of allocation received and current re-tagging/de-tagging status of FPS provided by SDO FPS Dealer Draft Submission by Dealer DM Draft Reconciliation Which is large in number SIO Generation Day 1 Day 2 Day 10 Day 14 Day 24 Day 30 Source: http://dfpd.nic.in/fcamin/sites/default/files/userfiles/DetailedGuidelines.pdf and JAPIT, Jharkhand Inclusion Exclusion errors Food grain allocation Food grain movement Ration card management
  • 6. Up to 21 days saved Additional Benefits:  Food Grain allocation available over internet  No more hassle of preparing Demand Drafts and managing physical instruments  Bank reconciles all the payments received from FPS Dealer instead of DM Office  Bank will provide data on payment details which will be passed into PDS application making SIO generation automatic Proposed: Food Grain Allocation Time LevelsDept Generates District wise Food Grain Allocation DC/DSO District prepares the FPS wise allocation on the basis of allocation received and current re-tagging/de-tagging status of FPS provided by SDO Bank Auto debit from Dealer’s A/C using ECS Optional: NeFT based payment DM SIO Generation Day 1 Day 2 Day 6 Day 7 Day 24 Day 30 Completed In Progress Inclusion Exclusion errors Food grain allocation Food grain movement Ration card management
  • 7. Existing: Food Grain Movement On the basis of allocation, cash transferred by State Food Corp. head through RTGS to FCI for RO Release RO based on stock availability State department lifts food grains and deliver to block godown by appointed transporter Stock unloaded in state warehouses shed and accepted after verification Gunny Bags are stacked On the basis of SIO, stocks are delivered to FPS under Doorstep Delivery system by DC appointed transporter Food grains are unloaded at FPS and counter signed SIO is handed over to transporter for sharing with AGM Challenge Data related to stock issuance, movement & delivery is not timely available for monitoring & proactive steps Inclusion Exclusion errors Food grain allocation Food grain movement Ration card management
  • 8. Proposed: Food Grain Movement On the basis of allocation, Cash Transfer through RTGS to FCI for RO Daily Stock lifting will be entered into PDS application and will be available online At State Food Corp. Godown, Loaded trucks will be weighed through weight scales linked to PDS database where FCI can match with the quantity released On the basis of SIO, stocks are identified by AGM for delivery to FPS under Doorstep Delivery system ward/panchayat wise Food grains are unloaded at FPS and counter signed SIO is handed over to transporter for sharing with AGM. AGM records the acceptance in the PDS application Each gunny bags will be weighed and details regarding weight, quality, stacking pos will be entered into PDS application Loaded quantity is measured through Weighbridge/ weighscale and Road Challan is issued to DC appointed transporter Reference: Guidelines by planning commission Inclusion Exclusion errors Food grain allocation Food grain movement Ration card management
  • 9. Proposed solutions to key problem areas • Lobbying between SFC and transporters will be reduced as digital weighing scales will lead to stock inventory data with the FCI • FPS dealer will not be able to bypass the system as the automated Adhaar database system will detail the quantity bought at the shop, thus giving the difference left with the dealer as inventory • Available weighing scales have to be modernized to link with computers integrated with main application Inclusion Exclusion errors Food grain allocation Food grain movement Ration card management Key concern areas • Possible lobbying between SFC Officers and transporters leading to pilferage of food grains • Change in the quality of the food grains in transit • End of the chain tracing at FPS, where the FPS dealer and transporter may come together to evade food stocks • Unavailability of digital weighing scales at various points • FPS dealer may sell less quantity at subsidised rate and hoard the food stock to sell in black market at exorbitant prices
  • 10. FPS Automation: Integration of TPDS with UIDAI •Ration Card No. UID CIDR Database •Biometrics of Beneficiary Visit the FPS along with Ration Card Validate the Ration Card No. and forward to UID server through secured lineReturn Yes/No Authenticate Biometrics of beneficiary Beneficiary Authenticated Sale of Commodity Aadhaar linked Ration card database/SRDH •Ration Card No. •Biometrics of Beneficiary Enrolment Sytem CIDR with Biometrics Authentication Service Agency (ASA) – secured leased line Authentication User Agency (AUA) Commodity wise delivery details are entered in PDS application. Biometric captured as acknowledgement of beneficiary is forwarded with the Ration card details to Aadhaar linked Ration card database/State Resident Data Hub (SRDH) through GPRS Inclusion Exclusion errors Food grain allocation Food grain movement Ration card management
  • 11. Solution Matrix Objectives Proposed Solution Outcomes Measurable Criteria Increase Operational Efficiency Supply Chain Computerization a) Reduction in time for information exchange b) Optimized commodity storage and movement for higher availability at FPS c) Approved information availability in various forms and formats a) Real time information availability b) % improvement in stock availability at FPS c) Report preparation and submission will be near real time Increase effectiveness of service delivery Digitization of beneficiary records a) Minimize leakages/diversion of food grains b) Minimize inclusion/exclusion errors a) Real time display of category wise list of beneficiaries b) % Offtake against digitally available card-id Computerized Allotment till FPS shop Community driven monitoring of stock movement and availability Average time gap between allotment from GoI and to FPS Ration Card Management System Better utilization of rationing facility by beneficiaries Average time gap between submission of application and service fulfillment Supply Chain Computerization incl. procurement a) Community participation in monitoring & evaluation b) Minimize leakages/diversion of food grains c) Improving Procurement and payment to intended farmers at MSP d) Improve availability of food grains at FPS a) Time gap reduction between starting of harvesting season and actual procurement post target fixation b) Real time public disclosure of procurement from intended farmers c) Real time public disclosure on food grain movement Transparency Portal & Grievance Redressal a) Minimize inclusion/exclusion errors b) Facilitation of social audit and ensure that beneficiaries receive their entitlement c) Higher accessibility to channels of complaints/grievances a) No. of site hits b) Real time status update c) Usage of escalation flow FPS Automation a) Minimize leakages/diversion of food grains b) Encourage transparency c) Improve availability of food grains at FPS a) Near-Real time public disclosure of beneficiary wise offtake details b) % of offtake recorded digitally
  • 12. Lets revolutionize Public distribution system !!! Thank you