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  1. 1. “PLUGGING THE LEAKS” A thought initiative felt and prepared for bringing out reforms in present PDS( Public Distribution System) via MANTHAN 2013 by the team: OJAS ANUJ MANTRI UMESH PATEL AYUSH MISHRA VISHAL KUMAR PRASAD MOHAMMED PARVEZ KHAN “ We care for IMPROVEMENT and firmly believe in INNOVATIONS….”
  2. 2. INTRODUCTION PDS was basically inspired from the British system of rationing system during the world war II which was then established and stabilized as a venture of FCI which was setup in 1965, with the following primary objectives as : Providing food grains and other essential items to vulnerable sections of society at reasonable ( subsidized ) prices. To have a moderating influence on the open market prices of cereals, the distribution of which constitutes a fairly big share of total marketable surplus. To attempt socialization in the matter of distribution of essential commodities. PDS corruption estimate closely matches the lower bound estimate of 2G corruption. But 2G scam happens once in a decade. “The PDS corruption happens every year” UNIT 2004- 2005 2009- 2010 Distribution via FPS MIN TONS 41.2 48.9 Food received by the population MIN TONS 13.2 25.3 % leakage by PDS shops 68.2% 48.3% Food subsidy- Ministry of finance RS.CRORES 24479 59621 Subsidy acc. To NSS RS.CRORES 8474 38875 PDS corruption estimate RS.CRORES 16005 20746
  3. 3. STAGES PROBLEMS 1. FARMERS • Unavailability of raw materials • Lack of resources 2. PROCUREMENT • Lack of access • Depressed producers 3. GODOWNS • Obsolete Infrastructure • Poor maintenance 4. TRANSPORTATION • Leakages • Supply delays • Higher cost 5. STATE STOCK HOUSES • Obsolete Infrastructure • Poor maintenance • Extortion and less no. of houses 6. FPS • Diversion • Under weight • Unfair business 7. CONSUMERS • Unavailability, unaffordability, non accessibility • Lack of information • Exclusion error & Inclusion error * The current storage capacity is 62.8 million tons, which is proving inadequate as India had record rice and wheat stocks of 65.6 million tonnes in its godowns in early June. Officials say the problem will only get increased as per present execution status.
  4. 4. SALIENT FEATURES  CDBMS – Central Database Management System  CDBMS will manage and enhance the accessibility and authenticity of consumers to PDS  States shall ensure food security of its people and maintain a real-time accountability to the central control system.  Consumers can have their eyes. Ears and voice to all steps and stages of the PDS in this set of discipline.  Inspectors at each level to check leakages and unfair business.  Informers at consumer level to improve transparency and access CONSUMER CDMS SYSTEM DE STATE FPS FPS FPS 1. SUVIDHA CARD 2. PACKET SYSTEM 3. COMMUNITY INSPECTORS 4. INFORMER
  5. 5.  ( ACTIONS - STEPWISE, STAGEWISE ) THE INSIGHT TO THE INTITATIVE STAGES OF PDS PROCUREMENT CENTRAL- STATE STATE- CONSUMER PROCUREMENT: • Encourage small farmers, and their productivity skills. • SMS alerts- Nowadays person from almost every section of the society posses a mobile, so govt can send imp alerts like MSPs, their transaction records. • Access to the producers and register them so that they can be benefitted by the system and may be able to benefit the system.
  6. 6. • FCI godowns • TRANSPORTATION • State Stock houses Elements of CENTRAL -STATE Stage CENTRE-STATE STAGE • Appoint engineers and specialists to come up with very strictly disciplined system of stock houses comprising primarily of modern infrastructure and accessorized with storing technology skills. • Mapping of transportation routes • Increment in no. of stockhouses • State should be strictly accountable to the central controlling system, and produce data of facts, status, alongwith the set of programs viz. distribution etc in real time manner, as our proposed system is highly network way connected. • Inspectors and instructors are needed to be recruited with strict criteria to check the leakages, black marketing and to ensure proper storing techniques and control.
  7. 7. STATE-CONSUMER STAGE The reformational elements of our REVOLUTIONARY system 1. SUVIDHA CARD 2. PACKET SYSTEM 3. COMMUNITY INSPECTORS 4. INFORMER SUVIDHA CARD • Its basically an electronic card through which the consumer will access to the PDS. • It will consist of- 1.Name 2.UID 3.Info. of family 4. Issue date 5.Photo, sign/thumb impression 6. Other features of accessibility and security. • Through this card one gets information about govt policies and other imp. notifications. • It will also increase authenticity and decrease personal errors. • Implementation is easy as in case of ATMs. PACKET SYSTEM Lets admit it there are leakages along the way and then targeted people suffer shortages. As per our system  We’ll ensure packet allotment of prescribed quantity to each account holder registered in database.  Packaging of food grains will preserve them from factors like moisture, chemical damage, and rodents attack etc.  Packet system distribution policy will increase the efficiency of PDS  Packaging system may be easily implemented and advantageously create employment opportunities for the labor and slum section of the society.
  8. 8. COMMUNITY INSPECTORS  Its an imp element of the system that will be the intermediate between sellers and buyers.  A person from each community of some strict qualification say graduation may be appointed as inspector who will ensure the quality and quantity of stock arrived at PDS and report it.  Ensure fair distribution, and coordinate with people, and report every info. to the control panel.  The inspector will be recruited on period basis and thereby will change from time to time to make the system even and fairly make it stable as well as dynamic. INFORMERS  Informers will be persons working at the lowest but most important level.  They will be a combination of youth (like students) and seniors ( retired officers).  They will serve the purpose of informing the non- educated BPL class people about various schemes of PDS.  They will work as a social worker BUT they will get some incentives from the government foreg : Colg fees of the informer student.
  9. 9. Our Proposed PDS system will have the following impacts and advantages: Increased System Transparency and Accountability “The most serious flaw plaguing the system at present is the lack of transparency and accountability in its functioning” • The Complete Online Real time synchronization between the Central and State database will help in making the system more transparent. • The consumer can have his sight over the flow and status of the process, still the privacy is highly maintained. • Since, each and every step is very transparent, So, not the system but the Employees will be accountable for any flaws or malfunctioning. • This will also ensure easy and efficient monitoring of each stage working in the system. Good quality of Food grains and reduction in diversion • The local community inspector will inspect for the quality of the food grains • If any FPS is found to be indulging in malpractices, its licence will be cancelled immediately. • The complete online system will reduce diversion to a very large extent.
  10. 10. Reduced PDS Leakages “PDS Leakages will be reduced due to the following reasons: • There will be route Mapping of all the Transportation of Food grains from FCI godowns to State godowns. • The Local Community Inspectors shall inspect the shortages, quality and control and would be responsible for initiating the action against it. • Online biometric card swapping system will eliminate - • inclusion errors, • exclusion errors, • double counting errors, • Missing household errors and • Shadow ownership error. • The system will ensure that PDS serves its actual purpose of providing food security to each and every person in INDIA Good Grievance Redressal Mechanism • “The role and sole of our system is COMMON MAN” • There will be a strong grievance redressal committee which will include local members that will identify the grievances and listen and respond to them immediately. • Small farmers are encouraged and trained with better motivational, informational, and technical skills.
  11. 11. TotalCost Initial Cost Technology pos device INR 50000 data base establishment INR 10000 suvidha card INR 5 lakhs Working Cost Organization community officer INR 3 lakhs training INR 2.5 lakhs establishment and logistic training centers INR 1 lakhs transport cost INR 5 lakhs FUNDING The above calculated costs are per annum calculations in a specific region having average population.
  12. 12. Suvidha card implementation may have some challenges and risks: • With implementation of modern computing, chances of hacking increases • Initial cost will increase due to the installation of digital devices at every booth • Chances of malfunctioning or deactivation of consumer account from data base may occur. • Proper firewall with regular updates and regular modifications will decrease the risk factor. • Reduction in taxes at different levels • Keeping alternative options will remove the risk factor.
  13. 13. http://www.hindustantimes.com/Punjab/Ludhiana/FCI-rapped-for-wrong-procurement-policies/SP-Article1- 1073245.aspx http://www.adb.org/publications/how-can-food-subsidies-work-better-answers-india-and-philippines http://planningcommission.nic.in/reports/peoreport/peo/peo_tpds.pdf Tenth Five Year Plan 2002-07 Eleventh Five Year Plan National Food Security Bill 2013 NCERT Economics http://indiatoday.intoday.in/story/problem-of-plenty-food-grains-left-to-rot-in-the-open-as-godowns- overflow/1/252581.html http://fciweb.nic.in/ http://pdsportal.nic.in/main.aspx http://mospi.nic.in/