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  2. 2. TARGETED PUBLIC DISTRIBUTION SYSTEMS THE WHAT & HOW OF PROBLEM STATEMENT “For every Rs 4 spent on the PDS, only Rs 1 reaches the poor”
  3. 3. The Public Distribution System is one of the important elements of the Government’s ‘Food Security’ system. OBJECTIVES • To ensure uninterrupted flow of essential commodities to identified beneficiaries. • Commodities supplied - rice, wheat and sugar through a network of 478,000 Public Distribution Shops at an affordable price. Eg.- rice at Rs.4.75/ kg . • Beneficiaries include different sections of population categorized under - BPL , APL, AAY(to the aged , disabled – 10 kg free of cost) etc. fig.1 population covered under TPDS theoretical . (source : FCI, 2006) PROGRAMMES • BPL : food grains at low cost to families below poverty line • AAY : Antyodaya Anna Yojana . provided to poorer bpl families of the state. 35 kg per family at Rs. 3.00 • ANNAPURNA SCHEME : . provided to aged, destitute & disabled individuals of the state. 10 kg per individual free of cost fig.2 % of each scheme under PDS(source : FCI, 2006) POPULATION COVERED UNDER EACH SCHEME UNDER PDS BPL - RS. 4.75 BPL - RS. 6.30 AAY AP APL UNCOVERED BPL - RS. 4.75 BPL - RS. 6.30 AAY AP APL
  4. 4. FCI FCI FPS AAM AADMI CitizensWSP Kerosene/ Sugar Factory Food grains : holes : middle men DISTRICT LEVEL MACHINERY : It consists of the District Collector and District Supply Officer and his staff at the district level and the Tehsildar/Taluka Supply Officer and Food Inspectors at the Tehsil/block level. TO THE AAM AADMI : lifting of food grains from FCI godowns is done by the designated wholesale dealers of food grains, who operate at the district or sub-district level, upon receipt of the allotment of grains from the district level. The food grains lifted by them are transported to their/other godowns at the sub-district level (stage I transport) and from there to the designated retail points (i.e. FDS) (Stage II transport).
  5. 5. The TPDS currently suffers from a number of issues that make it difficult for it to meet its objective of ensuring that the allotted quota of specified food articles reaches the intended underprivileged /needy segments of society . some are – 1. PDS Leakages : high inclusion/ exclusion errors leads to deprival of basic needs to BPL & Excessive diversion of grains to APL & Black markets via middle men creating burden on govt. TRANSPORTATION. 2. GHOST cards : single family procuring extra ration through multiple ration cards / different person procuring benefits using a card issued in anybody else’s name . As a result , about 42% of subsidised grains issued by the central pool reach the target group, according to a Planning Commission study released in March 2008. ( fig. allotment and procurement indifference ) 3. System Transparency and Accountability : system lacks transparency and accountability at all levels making monitoring the system extremely difficult. Giving enough space for corruption. 4. Complete failure of Grievance Redressal Mechanisms: Most fair price shops are private owned . Vigilance committee & Anti- Hoarding cells are virtually non existent.
  6. 6. IDEA : The idea derives its inspiration from the Permanent Account Number (PAN) system of tracking account transactions by Income Tax dept. Of INDIA of individual and combines the uniqueness model of UIDAI- Aadhar Card . SCHEME OF IDEA :1. Under the scheme , each citizen of India shall be allocated an E-Yantra account (EYA) in govt. records database . E-YANTRAACCOUNT – It is a linked database containing biometric, monetary and WORK PERFORMANCE particulars of an individual . The BIOMETRIC data from AADHAR card and FINANCIAL DATA from PAN records of individual. FOR AAM AADMI : • The beneficiary accesses the allotted quota of his/her Ration using the EYA number as login ID and BIOMETRIC DETAIL (eg. Iris, thumb impression ) for confirming that he/she has received the intended quota , as set aside by govt. , at the reception gateway (e.g.- FAIR PRICE SHOPS) (next…)
  7. 7. EYA FOR GOVT. OFFICIALS – AAM AADMI SUVIDHA WORK PERFORMAN CE RECORD MIS “corruption stems from the assumption that the boss is always the ruler of feedback mechanism” - The World, 1889 The WORK RECORD DATABASE will be a unique feature of E-Yantra Account (EYA). Just like govt. maintains a track record of financial assets using PAN , similarly govt. shall be maintaining a Work record Database of each govt. employee involved at each stage of PDS delivery process , starting from CENTRAL to FPS(fair price shop) delivery stage. The work completion at each stage will be automatically be considered over and the associated official be given clean chit by system, as soon as projected delivery process acceptance is confirmed by receiving component at lower level of delivery process, using his EYA & biometric password.
  8. 8. Central level States S1, S2…Sn District level Aam aadmi Fair price shops District level/ tehsil level RECEIVED = Y/ N ?? STATUS ?? FEEDBACKS FROM VARIOUS LEVELS PERFORMANCE RECORD DATABASE FLOW CHART OF FEEDBACK MECHANISM
  9. 9. FEATURES : plugging weakLEAKS 1. 24*7 helpline for complaints and grievances using MIS login regarding delay or quality of delivery. 2. Complete corruption tracking and availability through RTI portal. 3. Any default at any stage of delivery , leads to automatic deduction of penalty from wrongdoer’s bank account since monetary accounts of individual linked to EYA via PAN , just like income tax are cut automatically. 4. Freedom to beneficiary to procure commodities from FPS at any corner of India, in Any no. of installments , as long he/she has not procured the intended quota of his/her family using UID-MIS login similar to ATMs 1. Elimination of GHOST CARD system- utilizing the MIS database , people belonging to one family will be considered as one unit, So whoever procures , as long as they belong to one family, the commodity account will be same. 2. NO Scope for middle men : system having full details of components in e-TPDS leaves no scope for middle-men EXISTING OPTIONS : 1. INCORPORATING UID FOR TARGETED PDS : It does not offer an accountable methodology for economic worth assessment even in APL level. 2. DIRECT BENEFIT TRANSFER scheme : delay in procurement and lack of proper organisation of execution of distribution works.
  10. 10. Across this land if i hungry go; My soul would cry, n The world shall echo !! - ANONYMOUS
  11. 11. CENTRAL • Ministry of Consumer affairs • FCI ALLOCATION STATE • State dept. of food & civil supplies • Distribution of availed stock from union to districts DISTRICT • District food office • Giving license to pvt. Dealers to ensure delivery to FPSs(Fair price Shops) THE KEY STEPS involved in realizing the E-Yantra are : 1. Undertaking of a vast majority of private FAIR PRICE SHOPs by govt.. 2. Introduction of UID scanning machinery at all level of work process . 3. Setting up a 24*7 helpline facility to address grievances regarding the same. s cost analyis: depending upon the machinery involved it may vary between 12-13 Cr INR. (exact data unavailable)
  12. 12. 14 Inventory FCI Godown Allotment details Deputy DirDC/CEO Distribution to beneficiaries Food grains transport Monthly MIS report Allotment Intimation Monthly MIS report Other Schemes and activities Authorizes FPD allotment FPD owner submits SmartCard / PoS and payment MIS Report on FPD MIS Inspection report Other Schemes and activities Allotment Intimation STATE Commissioner/SDC DISTRICTTALUKVILLAGE Food Inspector with SmartCard/Data Storage Device Owner with SmartCard / PoS Fair Price shop Commissioner MIS Report FlowFood Grains Flow Tashildar/EO SmartCard / PoS Whole sale point Inventory SmartCard / PoS Payment Monthly MIS report Instructions PoS Device PoS Device Transport food grains
  13. 13. Despite the wide scale feasibility of the E-Yantrik way out to plugging of leaks in current scenario , however certain problems persist , owing to high level technicization , some of the challenges standing mountain high in the path of its actual realisation are : 1. ILLITERACY : A larger group of targeted beneficiaries of the system include the poor and the backward whose illiteracy and impotency to adapt to new technology , makes this scheme difficult to implement. 2. MERGING UID AND PAN DATABASE : Merging the two totally different databases requires high level of labour and cost input . 3. BETTER INTERNET & TELECOMM. REQUIREMENTS IN REMOTEST PLACES OF INDIA: In the scenario of a developing country , still gripped by basic problems such as poverty, food insecurity , ideal telecomm. Seems to bee a far fetched luxury however, although problems and challenges remain, but for coming up with a different india, we will have to cross hurdles quite a many . If problems exist …. So do solutions..!! we just need to look beyond the hurdles .
  14. 14. In preparation of the presentation we have taken help from the following sources: • Annexure C : UID and PDS System •Justice wadhwa committee report on PDS • FCI report 2006 • CkQFjAA& =nAQoUpjoAsTsrAeH3YCgAg&usg=AFQjCNFyiHdCb7Jni8cNA40z8eBXItYayQ&bvm=bv.51773 540,d.bmk • •World Bank Data bank Thank you