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  1. 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. 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. 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. 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. 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. 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. 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. 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. 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. 10.      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