The document discusses problems with the Public Distribution System (PDS) in India and proposes solutions. It notes that 58% of subsidized food grains are lost before reaching poor families due to issues like corruption, ghost beneficiaries, and poor targeting. It proposes several solutions like fast track courts for PDS cases, using Aadhaar cards to identify ghost beneficiaries, making workers responsible for lapses through salary deductions, expanding computerization, setting up a complaint cell, and redefining how the PDS system operates through the use of tokens. It also acknowledges challenges in implementing the solutions like political interference and the need for funds.

1. TEAM MEMBERS:-
Priyank Agarwal, Satyam Agarwal, Osamah Ahmad Warsi,
Nabeel Rauf Khan, Prashant Srivastava

2. INDEX
S.No Topic Location/ Page No.
01 Manthan Topic Page 1
02 INDEX Page 2
03 Problem Statement Page 3
04 Solution Proposed & Implementation Techniques Page 4 – Page 6
05 Ensuring Uninterrupted Progress & Impact
Explanation of the Innovative Solution Suggested
Page 7
06 Problems in Implementation & Challenges Page 8- Page 9
07 References Page 10

3. Reports show that 58% of subsidized food grains get
eaten up before reaching BPL families.
A) Over 36% of the budgetary subsidies on food
is siphoned off the supply chain and another 21%
reaches the APL households
B) The implementation of PDS is consumed by
targeting errors, prevalence of ghost cards and
unidentified households
C) The cost of income transfer to the poor
through PDS is much higher
than that through other modes.
D) Kerosene distributed through PDS is one of
the largest generators of black money.
INEFFECTIVENESS FIGURESCauses
Corruption
Ghost Beneficiaries.
Delayed court proceedings.
Poor law framework
No responsibility
Errors of Exclusion (of BPL families) and
Inclusion (of APL) families.
Poor Statistics due to interferences of
parties & hence poor policies.
More than 75% 50%-75% 50% - 25% Less Than 25%
Bihar & Punjab Haryana, M.P. & U.P. Assam, Gujarat,
Rajasthan,
Himachal Pradesh,
Karnataka, Maharashtra
Andhra Pradesh,
Kerala, Orissa,
Tamil Nadu & W.B.
Total Leakage: Intensity of Leakage of Subsidized Grains Issued from Central Pool

4. Solution Proposed
Bringing Justice
All issues related to this matter must be
handled in fast track courts. Strict
punishment up to a minimum of 10 years &
definitely sealing up the properties of the
ones involved.
 Attacking Ghost Beneficiaries
Introduce concept of time bound door
visiting in order to check the needed
beneficiary. If any card is fake card is detected
both the card holder & concerned officers
should be prosecuted as stated in point A.
 Make Workers Responsible
Introduce the concept of personal
responsibilities in case of lapses. New
definitions are needed to be laid for roles of
each position. There should be no hesitation
in deducting salary of the guilty.
Computerization
Involvement of computer needs to be
increased to limit the human interference and
data manipulation. The AADHAAR could be
quite effective. For e.g. computer says – “No
ration until the fingerprint gets matched”.

5. “Don’t give us free electrical equipments, give us 24 hour
paid electricity supply”
-Common Man
STATES
EXCLUSION
ERROR
INCLUSION
ERROR
Assam 47.29% 17.16%
Gujarat 45.84% 9.78%
West Bengal 31.74% 10.23%
Bihar 29.81% 12.20%
Haryana 27.90% 14.16%
Maharashtra 32.69 11.11%
Uttar Pradesh 26.75% 13.25%
Complaint Cell
Developing a toll free complaint call center
to listen to all complaints about PDS. The
complaints to be forwarded to a special
“Flying Squad Team” who will then be
bound to surprise scan the FPS* or the
reported part of the PDS within the next 48
hours. After each delayed hour 0.5% salary
to be deducted of this team.
Independent Statistics
Parties in power try to play with statistics through the Planning Commission. Poor statistics
lead to poor policies, from which many are left out. There is need to set up an independent
body which can determine poverty and other economic indicators without influence from
political lobbies.
*FPS: Fair Price Shops

6. “One cannot think well, love well, sleep well, if
one has not dined well.”
―-Virginia Woolf, A Room Of One’s Own
 Redefining PDS Working
 All target beneficiaries should be given quota of
tokens.
 Tokens to be bought by the people from Post
Offices within first week of the month after their
ration card and aadhaar cards verified.
 Data to be maintained against both cards.
 Each token to have a unique numbering.
 People will only get ration from their zonal FPS.
 BPL Card Holder Pays In Tokens And Not
Money.
 Payment made by government to FPS holders
per token returned to the government.
 If no of tokens issued no of tokens
returned. Then something is wrong.
Investigation is bound to be carried out.
Redefine Poverty Line
Poverty should not be measured on basis
of expenditure and calorie intake but also
on availability of basic amenities. There
are millions of households which do not
have access to clean drinking water,
sanitation, health care, education, etc.
POPULATION CONROL
With a population of 325 person/sq. km of
area the time has come to enforce strict
laws on putting restrict on the no. of
children a family can have. Each mother
should be allowed to make two deliveries.
Restriction shouldn’t be based on no. of
living children as it might agitate baby girl
killing.

7. Complaint Cell
 Within the 48 hours of complaint made, a
surprise checking of report part of PDS
should happen. Failure to do so should
impose fine on the officials responsible.
 If this happens for the twice in a week, a
answer seeking notice to be issued.
 If this happens for 4 times in a month,
suspension of official guilty.
 States should be divided into zones and
each zone should have one FST**.
 All reports to be submitted in special
courts which would impart their decision
within a week. The judge of this court
would be a retd. Justice of Supreme Court.
 These courts would be temporary.
Decision can be challenged in High Court.
Suggested Model Of
PDS
 If the owner of FPS, refuses BPL card Holders
from accepting their tokens, Complaints can
be made to CC*.
 If for 1 month ration card Is not used, then
issuing a notice to card holder. If this
happens twice in a year, termination of the
card. However, the card can be re-made, only
after the beneficiary is ensured not to be
bogus.
 Proper storage techniques to be ensured.
 Adulteration matters to be reported to CC*.
 Whenever an official is found guilty
punishment to be carried as described
earlier.
 All FPS to be given limited ration, which
would be calculated in each zone.
ENSURING PROGRESS & IMPACT
*CC: Complaint Cell
**FST: Flying squad Team

8. “There is no love sincerer than the love of food.”
― George Bernard Shaw
CHALLENGES
 POLITICS + BLACK MONEY = WIN ELECTIONS………Is it True?????
 Yes, at present time our democratic system is in deep threat. It would be
very hard to implement new measures to improve PDS. A report suggested
that the PDS corruption estimate is about Rs 20747 Crores.
 Kerosene is one of the biggest generators of black money. The subsidized
food items are sold in the market. Some food items are shipped illegally via
Bangladesh and Nepal Routes and hence is used generate Black Money.
PROBLEMS
SOLUTION
A warning time period of 4 weeks should be given to all for submission of
bogus cards and termination of all such illegal actions before implementing
the suggestions. After the warning time period expires the agencies should
launch a full scale attack.

9. DO WE HAVE THE FUNDS ???
 Computerization, Complaint Call Centers, Zonal Flying Squad Teams might
require budget. Where would the funds would come from ?????
 Our economy is suffering heavy degradation. With the present scenario, &
the value of Rupee for U.S. Dollar being at its lowest would it be advisable
to go for such measures immediately ?????
 Of course all these steps would require financial backing but it wouldn’t be
a very large sum. It would be easily affordable. 1000 computers would
hardly cost Rs.2 Crores.
 It might be true that we are stuck with recession finally but this could bring
a new life to our GDP. Even if we were able to reduce 50% of the
corruption in PDS we would save about Rs.10,373.50 Crores. So it would
be eminent to implement these laws immediately and very strictly.
PROBLEMSSOLUTION

10. REFERENCES
 Census Of India
http://www.censusindia.gov.in/2011-
common/census_data_2001.html
 Performance Evaluation Of TPDS (Planning Commission
2005).
http://planningcommission.nic.in/reports/peoreport/peo/peo_tpds.p
df
 Wadhwa Committee Report On PDS In India
http://www.prsindia.org/uploads/media/Food%20Security/Justice%2
0Wadhwa%20Committee%20Report%20on%20PDS.pdf
 Planning Commission : Reports & Publications
http://planningcommission.nic.in/