This document proposes solutions to improve the reach and efficiency of India's Public Distribution System by plugging leaks. It identifies problems like poor targeting of beneficiaries, bogus cards, and corruption. The proposed solution includes a modified Aadhaar-based UID card with biometric verification for distribution. Fair price shops would both sell farmers' products at minimum support prices and distribute subsidized goods. This would reduce middlemen, curb corruption, and better target beneficiaries, improving food security and living standards while reducing budget losses. Challenges include lack of awareness and infrastructure issues, but these can be addressed through training and partnerships.

1. MANTHAN TOPIC:
PLUGGING THE LEAKS
IMPROVING REACH AND EFFICIENCY OF THE PUBLIC DISTRIBUTION SYSTEM
TEAM MEMBERS:
SWAPNIL RAJEEV
NISHESH KUMAR GUPTA
CHANDAN KUMAR SONI
PRASANNA VERMA
VINEET SHUKLA

2. CURRENT SITUATION IN PUBLIC DISTRIBUTION SYSTEM OF INDIA:
STATS:
• Population of INDIA : 128 Crores (APL 30.6%, BPL 25.1%)
• Percentage of BPL people getting benefited through current PDS System of INDIA : Only 10%
• No. of PDS Stores in INDIA : 5,05,879
• Percentage of PDS Stores not viable (due to leakages and other problems) : 23%
• Budget allocated to PDS System : 85,000 Crores
• Estimated Corruption in current PDS System : 21,700 Crores
PROBLEMS/CAUSES:
Wrong Criteria for selection of APL and BPL
Shadow/Bogus Cards
Poor Storing Facilities
Lack of awareness among card holders
Inferior Quality of Commodities
Middlemen are getting maximum benefit
Extra Cost on Transportation
Small Range of Commodities
Inferior Quality of Commodities
REASONS FOR SELECTING CAUSES:
Malnutrition
Poverty
Medical Instability
Corruption
Food Insecurity

3. PROPOSED SOLUTION REGARDING PROBLEMS IN CURRENT PDS SYSTEM:
• Modified version of UID (Aadhar Card)
(a) Bar Code in UID for the Head of the family can be served as substitution for current Rashaan Card
(b) All the financial details should be added in this modified version of UID for a better characterization of APL-BPL categories
• Bio Metric Verification System
• Selling Buying Fair Price Shops
(a) Farmers can sell their production at Minimum Support Price directly to the government
(b) Same production can be distributed among card holders through same shop
MERITS:
Proper characterization of APL-BPL can be done
Middlemen will be ruled out to the maximum extent
Bogus/Shadow cards will be eliminated
Farmers will get right cost of their production
Strengthen the networking system rural areas
Transportation cost will be minimized
Employment Opportunities can be increased by connecting through MNREGA and corruption in it can also be minimized
Every APL-BPL card holder will get a bank account
Storing Problems will be minimized

4. IMPLEMENTATION MODEL:
A. UID CARD SYSTEM
(a) First of all, Identification marks like thumbprints, signature, photographs, fingerprints, retina check should be added
(b) Financial details of each and every family member
(c) All of family members should have similar UID number
(d) Bio Metric Verification at the time of receiving commodities in PDS Shop
(e) Card Reading will provide commodities for one month
(f) UID cards will be linked with co-operative/nationalized banks
(g) Even UID cards will be linked with MNREGA scheme

5. B. SELLING BUYING FAIR PRICE SHOP
(a) Area provided to current PDS Shops increased to some extent
(b) Installing PCs, Bar Code reader, Bill printing system and tie-ing up with communication giants for providing required networking facilities
(c) Training shop staffs regarding required software
(d) Fix first week for selling of farmer’s production at minimum support price
(e) Billing of every purchase in regional language or Hindi
(f) Information of buying and selling through advertisements, pamphlets, SMS alerts and other media sources
(g) Second week is meant for the transportation of other commodities like kerosene oil, sugar etc. and also transportation of extra/scarce commodities
(h) Third week is meant for distribution of commodities
(i) Every details regarding buying and selling should be uploaded on the internet and will be made to public

6. STAKE HOLDERS INVOLVED:
• Software Companies
• Nationalized and Co-operative Banks
• PDS Staffs
• Farmers
• Workers under MNERGA scheme
FINANCIAL AND HUMAN RESOURCES INVOLVED:
• Software Developers
• Trainers for PC & Software education
• Volunteers for creating awareness
• First Financial Installment from Government and other NGO’s &
Industrial leaders
• Successive Financial Installments from profits earned

7. IMPACT OF THE SOLUTION:
(a) Better living conditions for farmers
(b) Workers under MNREGA will get actual wages
(c) Most of the middlemen will be ruled out
(d) Burden over state governments regarding transporting and storing will be removed to a maximum extent
(e) We will conduct a survey after one year of implementation of the required solution to know the outcomes and possible failures & short comes
(f) We will fix an index for success and failure rate regarding APL-BPL characterization, beneficiaries FPS, corruption, bogus/shadow cards
(g) It will sustain for a very long time
MONITORING SCHEME
(a) Every purchase and sell should be done with billing
(b) Proper check is required for every fair price shop regarding dispatching of food grains and other commodities
(c) Half Yearly Inspection of FPS to eliminate hording and black marketing
(d) Keeping an eye on every transaction activity done by each and every FPS through a panel of software engineers

8. CHALLENGES:
• Lack of knowledge among poor people
• Hardships in tracking FPS in remote areas
• Extra burden on budget plan
• Requires training at higher level
• Interruption of political parties, highly influential people over surveying committee
• PC Maintenance is required at extreme level
• Network failures in PDS Shops
MITIGATION FACTORS
NGO’s and Volunteers can be helpful in creating awareness
Mass and media can also serve for creating awareness
Private companies can be helpful in tracking of FPS in remote areas
Since, we are eliminating corruption and loss of 21000 Crores each year so 8000 Crores can be taken out from it

9. APPENDIX:
http://www.Wikipedia.org
Planning Commission Report
Relevant data's from e-PDS
http://pib.nic (Press Information Bureau)
Renowned Indian Newspapers like The Hindu and The Indian Express
http://adb.org (Asian Development Bank)