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from A.K.Soma Sekhar Scientist-'E'
NIC Raipur

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  1. 1. Centralised Online Real-time Electronic PDS CORE PDS, Chhattishgarh COREPDS
  2. 2. What was there before COREPDS? Supply chain computerisation is operational since 2008  Unified Ration Card Database  Automated Allotment  Online, real-time inventory management at warehouses  SMS Alerts & Reports in public domain  Call centre and Complaint Monitoring System Increased Transparency ,Accountability, Efficiency
  3. 3. Situation before initiative  BPL beneficiary was getting her full entitlements in the system, But, still there were problems faced by beneficiary at FPS.  There were leakages/diversions in the system in case of APL food grain & Kerosene
  4. 4. Most common problems faced bybeneficiary at FPS  FPS is not open when the beneficiary wants to take her rations, leading to additional trips.  FPS declares no stock even when the FPS has sufficient stocks, leading to additional trips.  The sales person does not accord due respect to the beneficiary or sometimes misbehaves.
  5. 5. Most common problems faced bybeneficiary at FPS (contd.)  Overcharging – The sales person charges more than what is chargeable.  Deliberate under-weighment of the commodities by sales person.  Beneficiary may need to spend at least half a day to take commodities because of long queues.
  6. 6. Solution to above problems No technology can solve the above problems. But portability can solve the problems. Portability empowers beneficiary to go to an FPS giving better services, there by creating a reason for improvement in service at FPS. Solution is the ‘Beneficiary empowerment’
  7. 7. Power of right to chose Q Why your colonys provision shop-wala shall never ill-treat you? A if he ill-treats you or hurts your ego you will stop going to the shop. Because you have freedom to chose where to purchase he will treat you well.
  8. 8. What COREPDS offers The convenience that technology has given to a bank account holder to withdraw money from any ATM, is being offered to a poor BPL beneficiary in COREPDS
  9. 9. COREPDS Objectives  To improve Service Delivery  To reduce Diversion  To empower beneficiary  To Weed out Bad FPS  To Create Transparency
  10. 10. CORE PDS How it works
  11. 11. Every FPS has a POS device
  12. 12. Smart Ration card for a BPL beneficiary Smart card has no biometrics. Uses KMS supplied by NICHQ
  13. 13. How it works?  Beneficiary swipes the card  Smart card is authenticated  Ration Card number is sent to central server  Food Account balances details are shown in the POS
  14. 14. How it works?  FPS enters commodities being issued with his card swiping  The quantities are deducted from the balances on central server and success report is given to POS for further processing  SMS is given to the registered mobile (if any) with the card with the transaction details
  15. 15. APL Ration Cards  They are not given smart cards.  They will register mobile numbers  They take commodities using OTP
  16. 16. RSBY Cards to be used as Ration cards COREPDS is designed to use RSBY Smart cards as Ration Cards by linking URN of RSBY and Ration card number.
  17. 17. COREPDS Application Features
  18. 18. Issue PDS Commodities with SRC This is the default method of issuing PDS commodities in COREPDS. SRC is inserted in the POS device. POS authenticates SRC and sends ration card details to server to get Food A/C balances. When balances are displayed on the screen, quantities to be issued are entered and submitted to the server. Server updates the transaction and success report is sent. Receipt is printed and given to the beneficiary along with PDS commodities.
  19. 19. Issue with SRC
  20. 20. Issue PDS Commodities without SRC There will always be a situation where a small percentage of genuine beneficiaries do not have SRCs because either they could not take in the distribution camps or they have lost and duplicate is not yet been received. This use case is to serve these genuine beneficiaries even with the risk of a few proxy issues. These beneficiaries shall not get the advantage of portability. But can take the commodities from their linked FPS.
  21. 21. Issue PDS Commodities with OTPAuthentication APL Beneficiaries have been registered with their mobile numbers. These beneficiaries also can go to any FPS with their registered mobile and claim their entitlements. FPS enters their ration card number and submits to the server. Server sends OTP to the registered mobile number and food a/c balances to the POS device. Beneficiaries shares OTP with FPS which will entered in POS device authenticates OTP and sends success report for further issue of PDS commodities.
  22. 22. Issue PDS Commodities with SRC in Offlinemode It is true that the connectivity is good in India and increasing rapidly. But it is also fact connectivity at one place is not reliable. This use case is to continue the business in case of temporary connectivity problems at FPS. The transaction is completed offline and stored in the FPS’s Smart card as well as Beneficiary’s SRC. As soon as the connectivity is available the transaction shall be updated in the server
  23. 23. Issue PDS Commodities with RSBYSmart Card Government of Chhattisgarh has decided to universalize RSBY throughout Chhattisgarh. Hence department has decided to use RSBY cards as smart ration cards. This will be the first successful experiment in the country that provides for synthesis between the efforts of the two departments of the government to provide services to common beneficiaries through the same instrument. RSBY cards can also be used for biometric authentication.
  24. 24. Reports on POS device  Daily Transactions  Stock Position  Balance Query of Beneficiary  Mini Statement of a Beneficiary
  26. 26. Risk 1  Implementation of CORE PDS acts against the interest of many FPS Agencies. It is not wise to assume that FPS will sincerely try to implement CORE PDS
  27. 27. Mitigation Strategy  When one FPS says that the POS is not working beneficiary can go to a near by FPS. FPS that can not run COREPDS loses its business to other FPSs.  FPS automation without portability as tried in some States is difficult to sustain
  28. 28. Risk 2  In the initial days, all FPSs in an area can form a nexus and see that POSs do not work.
  29. 29. Mitigation Strategy  CGSCSC operates mobile FPS .
  30. 30. Mitigation Strategy Whenever a report is received that many FPSs are not working in one area, these trucks will be sent to that area. They serve the beneficiaries in front of the FPSs. Thus, FPSs who do run CORE PDS shall lose their business.
  31. 31. Risk 3  Competition does not help if everyone is bad. FPSs may intentionally do not improve their service to prove that COREPDS is a failure.
  32. 32. Mitigation Strategy  Good performers – NGOs, Corporates under their CSR – will be introduced  50 FPS buildings under construction, each costing 10 lakhs  They will set benchmark for service
  33. 33. Competition does not matter when all are bad.  NGOs, trusts and social activists may be asked to run additional FPS points (in addition to the existing) at strategic locations to introduce real competition. These shops also replenished with the PDS commodities not with the cash - Sufficient security deposit - Strict norms for opening timings, display board etc. - No discrimination among beneficiaries ( Yet to be implemented)
  34. 34. How these new FPS improve service level?  By providing Quick service by keeping pre- weighed quantities  By using electronic weighing machines and modern measuring devices  By treating beneficiaries with dignity and respect  By providing PDS commodities after cleaning further  By offering cold water etc.
  35. 35. Risk 4  Distribution of smart cards could not be completed. A few people do not have smart cards  Smart cards are lost. It takes a few days to re-issue a duplicate card.
  36. 36. Mitigation Strategy  Issue with FPS card when Beneficiary Smart card is not available  Permanent Smart card issuing centre  Duplicate card issue commitment under citizen charter
  37. 37. Risk 5  Bio-metric authentication creates unnecessary harassment to 90% genuine beneficiaries to check fake issue to 10% cards
  38. 38. Mitigation Strategy  Bio-metric authentication is gradually introduced in CORE PDS using Aadhaar Infrastructure  Collector or his nominated person has right to exempt a beneficiary (old, handicapped etc.) from bio-metric authentication  One flag on server will decide whether Bio-metric authentication is required o not.
  39. 39. Risk 6  Connectivity is either not available or speed is not sufficient
  40. 40. Mitigation Strategy Connectivity Survey was done. GPRS connectivity is available at all the 175 FPSs. Effective speeds vary from 20 KBPS to 70 KBPS.
  41. 41. Location of FPS’ in Raipur
  42. 42. Risk 7  Unreliable connectivity
  43. 43. Mitigation Strategy  COREPDS by design is an online system. But it allows a limited offline issues also in case of connectivity failure ( 3 for a beneficiary and 100 for an FPS)  Offline records will be uploaded whenever Smart card is inserted in a connected POS device or through FI module
  44. 44. Risk 8  Too much dependency on SI
  45. 45. Mitigation Strategy  NIC is developing all web services required  1st version of POS application has been developed by SI. SI handovered the source code to NIC  NIC has sufficient skill set for maintenance of POS software
  46. 46. Challenge 1  Maintenance of POS devices  225 POS devices for 175 FPS
  47. 47. Challenge 2  To train 175 FPS sales men  To create necessary will to change  To create necessary change  To create necessary awareness among beneficiaries  Video CD with HCM’s message, Hon’ble Minister’s message and instructions to operate POS device (under Development)
  48. 48. COREPDSPerformance Indicators
  49. 49. Reduction in Fake Issues Change in percentage of utilization of commodities at FPS, when compared to that of the same month of previous year and the average of 3 months prior to COREPDS, shall be calculated which can be used to find out the actual savings due to implementation of COREPDS. +ve indicator
  50. 50. Measurement of Portability  Churning Effect The % of beneficiaries taken commodities from other than attached FPSs in the total beneficiaries taken commodities in that month will be calculated. +ve indicator
  51. 51. Measurement of Portability  Weeding Out Bad FPSs: % of FPSs that have served less than 75% of attached beneficiaries in total number of FPS in COREPDS shall be measured. When some FPSs lose their business due to this portability then only we can conclude that beneficiaries are getting better service and bad performers are being punished. +ve indicator
  52. 52. Measurement of improvement in servicedelivery  % of people getting all commodities at one time: It is an observation that beneficiaries have to visit multiple times to get different commodities in the present system of PDS. It is an obvious improvement in service delivery if beneficiary can get all the commodities (except Kerosene) at one time, saving in multiple trips and associated cost and time. Kerosene is neither sold nor preferred to be bought along with food grain commodities because of its smell. +ve indicator
  53. 53. Annual Customer SatisfactionSurvey An Annual survey will be conducted to take feedback from at least 1% of beneficiaries in COREPDS and the customer satisfaction indicator will be calculated.
  54. 54. Stake Holder – Department of Food Responsibilities Performance Indicators • Policy making •Number of FPSs • Introduction of good sponsored performers •Number of Inspections • Smart card Distribution taken • FPS Inspection •% of Smart cards distributed in total cards created •% of signed FPS declarations uploaded (monthly)
  55. 55. Stake Holder – CGSCSC Responsibilities Performance Indicators •Delivery of PDS •Number of FPSs - commodities to FPS Days with zero stocks of any commodity •Operation of mobile (-ve Indicator) FPS •Number of Beneficiaries benefitted through mobile FPSs
  56. 56. Stake Holder – NIC Responsibilities Performance Indicators •Providing technology •Server Up time solutions Percentage – 95% of server up time is SLA •COREPDS technology maintenance •% of offline transactions in •Capacity building the total transactions (-ve Indicator) •Addressing day to day technical problems •Number of Hours of training •Number of FPS visits
  57. 57. Stake Holder – Fair Price Shop Responsibilities Performance Indicators •To sell PDS commodities •The % of net addition of to any valid PDS beneficiaries over the total beneficiary of COREPDS beneficiaries attached to ensuring dignity and that FPS who received convenience of the PDS commodities from beneficiary any FPS •To submit signed declaration in time •To deposit money with CGSCSC in time
  58. 58. Stake Holder – Beneficiary Responsibilities Performance Indicators •To keep watch of •Smiling face of operations of PDS beneficiary is the ultimate +ve performance indicator of the system •Beneficiary performance shall not be monitored
  59. 59. Benefits realised
  60. 60. Reduced waiting time for servicedelivery Due to equal distribution of beneficiaries in all nearby FPS’ the average waiting time has reduced to half an hour from 2 to 3 hours before implementation of COREPDS
  61. 61. Reduction in diversion Mechanical authentication at the time of delivery completely checks the record of proxy issues and thus reduced diversion
  62. 62. Behavioral change in behavior of FPSpersonnel The portability offered in COREPDS creates fear of losing customers which brought a drastic change in behavior of FPS personnel while dealing with the beneficiary
  63. 63. Reduced number of trips of beneficiaries totake different commodities In COREPDS, a beneficiary is able to get all the commodities at one time. Even when one commodity is not available in an FPS the beneficiary can take the same from nearby FPS. This has lead to a drastic reduction in the number of trips of the beneficiary to take commodities to 2 trips
  64. 64. Bribe money stopped at the root: As FPS in COREPDS can’t record proxy issues and hence it cannot black market any commodities. When the FPS does not get any illegal money it cannot pump the money upward in the chain.
  65. 65. Quantitative Indictors of Outcome
  66. 66. Reduction in Diversion (Aug 31st, 2012) Indicator Before After Remark COREPDS CORPDS 100% 95% Prior to COREPDS, Sale of FPSs used to record BPL Grain proxy issues and declare 99 to 100% sale. After 100% 75% introduction of Smart Sale of card / OTP Kerosene authentication the sale figure have reduced. Sale of 80% 50% APL Grain
  67. 67. Improvement in Service Delivery Indicator Before After Remark COREPDS CORPDS Churning Effect: The % 0 14.3% There used to be of beneficiaries taken the beneficiaries, from the FPS other than which were forced the attached to take rations from % of FPS lost more 0 18 % their fixed shop than 25% of their prior to business COREPDS. They have moved to Average number of 4 to 5 1.8 other shops. This trips to FPS to take is a direct indicator different commodities of improved service delivery.
  68. 68. Freedom to chose Currently 14% of beneficiaries are using portability. Remaining beneficiaries are taking at their own FPS, but now with their choice not by compulsion. At this context I want to refer Amartya Sen’s quotation which is as follows
  69. 69. From Development as Freedom, p 27 "A person produces the same commodities in the same ay and ends up with same income and buys the same goods, she may still have very good reason to prefer the scenario of free choice over that of submission to order" Amartya Sen Winner of the noble prize in economics
  70. 70. The road a head Rollout of COREPDS in Rajnandgaon & Durg cities 01.11.2012 Bilaspur & Bhilai ciries 01.01.2013 All the remaining 6 cities 01.04.2013 Through the State 31.03.2015
  71. 71. COREPDS shall revolutionizethe way PDS operates today
  72. 72. Thank you