1. Team Details:
Concerned issues
A Brief Overview With Solution

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. 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. 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. 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. 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. 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. 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. 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. 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. APPENDIX
 A document that details the on boarding of registrars
at UIDAI:
 http://uidai.gov.in
 Welfare scheme:
 http://fciweb.nic.in/PDS/Note%20on%20PDS%20
 Department of Food and Public Distribution :
 http://fcamin.nic.in/storage/mannual%20I.doc
 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