The document discusses India's Public Distribution System (PDS) which provides subsidized food to millions of people. It notes that while the percentage of people below the poverty line has decreased, over 2 crore people still rely on the Antyodaya Anna Yojana program for the poorest. The document outlines the various actors and processes involved in the PDS from procurement to distribution. It acknowledges challenges like inefficiency and exclusion of households. To address this, it suggests forming a PDS Management Forum to conduct gap analyses between policies and implementation and establish an implementation and audit scheme with representatives from different departments and an independent audit team.

1. Plugging the Leaks
World’s largest Public
Distribution System of
World’s Biggest Democracy
Solution
PDS Management Forum
Team Members: College:
Jatin Sethi Indian Institute of Information
Kaushik Pandey Technology - Allahabad
Somesh Pratap Singh
Sumit Tekriwal
Vaibhav Nath Sharma

2. Current Situation
•Planning Commission of India
states that the percentage of
BPL people has gone down
drastically from 37.2% in 2004-
05 to 21.9% in 2004-05.
•Snapshot shows the fixation of
poverty line from GOI.
•Antyodaya Anna Yojna(AAY) is
also currently implemented,
launched in December 2000 for
one core poorest of the poor
identified from the BPL families.
•Around 2.43 crore of the
population comes under AAY
according to the report
published in DoFPD.
Year Budget
Estimate
Revised
Estimate
Actual
2011-2012 72331.32 84487.41 84423.31
2012-2013 86961.66 96875.72 77870.90*
2013-2014 101728.64 -- -- * Till December 2012
Expenditure Statement of Department of Food & PD

3. Government of India, Planning Commission
Department of Food & Civil Supplies, Planning
Commission
Ministry of Food & Civil Supplies, Department of
Food
From Farmers, Traders/Millers, and import by FCI
and NAFED
Warehousing Corporation, FCI Regional Depots
State Civil Supplies Department
District Supply Officer
Block Revenue Officer
Fair Price Shops
PDS Consumers
Policy Formulation
Objectives
Implementation
Procurement
Distribution Warehousing
& Transportation
Retailing
Actors in Play

4. Process Followed by The Govt.
Farmers
Central
Government
State
Government
District
Administratio
n
Block
Administration
Godown
Fair
Price
Shops
Beneficiary
The government has tried to tackle the problems by employing a TECHNOSAVY approach:-
 Unique Identity Card
 Global Positioning Systems and Radio Frequency Identification Devices
 Availability of PDS documents in the public domain
 e-PDMS(Public Distribution Monitoring System)
 Computerized records, biometrics and smartcards etc…

5. Challenges
Hunger &
Malnutrition
Inefficiency of
TPDS
Inefficiency of
mid-day meal
scheme
Exclusion of a
large number of
deserving
households
Problems
associated with
identification and
exclusion
The BBC quoted a story on May 18 in
which one of its correspondents, Jill
McGivering, said: “Attempts by the
Indian government to combat poverty
are not working, according to the World
Bank”.

6. Action Suggested
 It is very understood that the Government of India is already having a framework
for PDS, the only issue is that there are some flaws in implementation of that. So
to replace the whole system with a new framework is not proper approach, hence
the suggested action below should be followed at proper interval, to bring gradual
improvement.
 The suggested solution is the formation of “PDS Management Forum”, which will
have following responsibilities:
• It is Phase 0 Approach.
• To find the Performance Gap between existing
documented policies and policies followed.
Gap Analysis
• It contains three Phases 1,2 and 3.
• This will describe how to implement the work
PDS Management Forum, also the audit policy.
Implementation &
Audit Scheme
Both the process stated above are cyclic, these have to be repeated
at particular time interval each year.

7. To find level of implemented system
Compare with current exiting system
Provide valuable reason
Estimation about future correction
What firm
must know ?
What firm
must do ?
What firm
knows ?
What firm can
do ?
Knowledge Gap Strategic Gap
Gap Analysis

8. 1
3
2
P
H
A
S
E
Step 1 : Scope Definition
Step 2 : Defining the Policy
Step 3 : Define the Risk Assessment Approach
Step 4 : Identify Risks
Step 5 : Analyze & Evaluate the Risks
Step 6 : Undertake Risk Treatment
Step 7 : Select Control Objectives & Controls
Step 8 : Management Approval
Step 9 : Implementation of Controls
Step 10 : Statement of Applicability
Risk Examples :
delay in receiving
the goods, losses
due to shortage
of goods,
unequal
distribution of
ration cards
between APL and
BPL holders,
increasing
transportation
cost, low
commission and
blockage of
working capital
etc …
Implementation & Audit Scheme

9. PDS Management Forum
 The following hierarchal structure shows roles and responsibilities of different representatives.
 It is important that the Audit Team should be an independent team, it should not contain representatives from the
departments(Actors) shown in slide 3.
 Also the CIO (Chief Information Officer) team and its inherit team will only provide the data needed by Audit team,
they can’t interfere in there work.
 The Audit team will directly report to the Head of Planning Commission.
Head of Planning
Commission
Representatives from each department
mentioned in Slide 3
CIO
The AUDIT
Team
Required Information
Will Report To
Information
Will Report To

10.  www.elijahignatieff.wordpress.com
 www.isms.jipdec.jp/en/isms/frame.html
 www.frontline.in/static/html/fl2812/stories/20110617281208800.htm
 www.en.wikipedia.org/wiki/Corruption_in_India
 Pdf : Food Security and the Targeted Public Distribution System in India, by
Dr Ruth Kattumuri
 Pdf : Enhancing Corruption the NAC Way,
By Surjit S Bhalla
 Considering the future of the Iraqi public distribution system – Document
of World Bank
References