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To MINIMISE The Leakages in
the PUBLIC DISTRIBUTION
SYSTEM
Submitted by-
TEAM RADICALISTS
Tushar Sonal, Asad Parvez, Tanya
Khanijow, Surbhi verma, Apoorv
OVERVIEW:
PROBLEMS:
We seek to present solutions
to the following problems in
the current system of PDS:
1. Ghost Ration Cards
2. Transparency in the mode of
distribution of commodities at
the Fair Price Shops.
3. Elimination of leakage and
diversification of subsidized
food grains.
4. Delivery cost across states.
0%
10%
20%
30%
40%
50%
60%
Drawbacks of PDS:
PROPOSALS:
CURRENT SYSTEM: SUGGESTIONS:
 Most states have three/four
tier system before subsidized
food grains reach retail
outlet.
 Different states issue different
ration cards. No uniformity.
 Exclusion of intermediate levels
mandated by central
government to eliminate middle
man consumption.
 Issue of an electronic unique ID
for every household. Renewed
every six months and which
contains details of monthly
quota of consumption.
 Different BPL card holders to
have different quota of
consumption based on income
levels decided by planning
commission of India.
 The construction of warehouses
must be around railway
stations/rail yards.
INNOVATIONS:
EXPENDITURE: 1. AUTOMATION OF GRAIN
DISTRIBUTION AT FPS
 Grain/kerosene wending
machine technology , is
brought in at FPS.
 The commodities from
machine to be only
collected by by swiping
electronic card.
 The amount of grains input
and output is machine
calculated. Eliminates
handling by dealer.
 Reduces leakages
 Consumer can “withdraw”
anytime.
Estimated cost of wending machine
technology is approx. $800 per machine
For installation of technology at approx. 5
lakh outlets is $400,000,000.
At a rate of Rs. 65/1$, that is Rs. 26000 crore.
GOVERNMENT spends approx. 30000 crore
on PDS annually, of which leakage and
diversion causes 57% loss. That is 17,100
crore.
By minimizing leakage, cost of installation will
be recovered in 2 years!
2. CERTAIN REFORMS:
• The Dealer of FPS to be elected by
people in the area of shop.
• Decentralization of power from dealer
to SHG, which is to be formulated in the
area.
• Government to train persons from SHG,
in terms of usage of technology and fair
dealing of food grains.
• Different SHG in an area to be elected
for a tenure of 6 months for ensuring
the food grains are not spoiled, by
strictly following government directed
procedures.
• Based on efficiency(as calculated in
slide 6) of SHG, they shall be either
allowed to work again
• However, these people do not handle
grains directly. This will eliminate risk of
diversification to open market.
• Central planners to take in an extensive set of inputs, then feed them
to softwares like SAS to obtain the parameters, on which the
modelling of the efficiency of the working of FPS will be done
• Next mathematical tools like DEA , TOPSIS are selected on these
parameters to work out the efficiency of the delivery of food-grains
from FPS
• This data will be available on the central database and every FPS will
feed their equivalent set of data , for indexing how efficiently they
have been performing
• If the FPS is under-performing , the volunteers will be re-elected and
the old ones will be lightly penalised , like marking their homes (as a
mild form of social boycott ) to motivate them to improve
performance .
BENEFITS:
Central government
and the people who
are entitled to
benefits are most
responsible in the
mechanism. Hence
they will be
immensely motivated
towards ensuring that
the process is very
efficient
Ensuring that handling
and delivery of grains is
automated, mishandling
of the grains is reduced.
The role of officials and
elected volunteers is
just to ensure that the
planned policies of
government are
executed with regard to
safety of food-grains
and operation of
machinery.
Also it is convenient
for government to
select and teach
LOCALS who are well
versed with the local
conditions rather
than sending officers
to most of the places.
Also providing them
with employment
Using the mathematical tools will
ensure that the process is entirely
performance based , which is a
good thing here since the objective
is that no one goes hungry
By displaying the
performance index of each
FPS to the public ,the people
can understand how well
their local FPS is performing
and compare it with the
neighboring ones
• LOCALS may be apprehensive of using technology.
• Ensuring net connectivity and sufficient IT infrastructure in
every village in India
• Expenditure on construction of warehouses near railway
stations, introduction of technology and training persons.
• The scope of middle-men must be eliminated as much as
possible by ensuring that processes are automated.
• It is not possible to completely automate the process as
transportation of food-grains from trains to warehouses need to
be done manually.
• The system requires ,for its success , a pan-India acceptance .
If some states decide to remain out of this or devise
independent mechanisms , then the positives of this mechanism
will be affected.
• People will have to be sufficiently educated via
advertisement and the benefits of the system to be
discussed.
• The government needs to put up a considerable one-
time investment in the installing of computers and IT
services in the length and breadth of the country.
• Central government mandated procedures for all state
governments to be set up.
• http://planningcommission.nic.in/reports/peoreport/peo/pe
o_tpds.pdf
• http://www.sccommissioners.org/News/Documents/TPDS_c
ivilsocietyengagement.pdf

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Radicalists

  • 1. To MINIMISE The Leakages in the PUBLIC DISTRIBUTION SYSTEM Submitted by- TEAM RADICALISTS Tushar Sonal, Asad Parvez, Tanya Khanijow, Surbhi verma, Apoorv
  • 2. OVERVIEW: PROBLEMS: We seek to present solutions to the following problems in the current system of PDS: 1. Ghost Ration Cards 2. Transparency in the mode of distribution of commodities at the Fair Price Shops. 3. Elimination of leakage and diversification of subsidized food grains. 4. Delivery cost across states. 0% 10% 20% 30% 40% 50% 60% Drawbacks of PDS:
  • 3. PROPOSALS: CURRENT SYSTEM: SUGGESTIONS:  Most states have three/four tier system before subsidized food grains reach retail outlet.  Different states issue different ration cards. No uniformity.  Exclusion of intermediate levels mandated by central government to eliminate middle man consumption.  Issue of an electronic unique ID for every household. Renewed every six months and which contains details of monthly quota of consumption.  Different BPL card holders to have different quota of consumption based on income levels decided by planning commission of India.  The construction of warehouses must be around railway stations/rail yards.
  • 4. INNOVATIONS: EXPENDITURE: 1. AUTOMATION OF GRAIN DISTRIBUTION AT FPS  Grain/kerosene wending machine technology , is brought in at FPS.  The commodities from machine to be only collected by by swiping electronic card.  The amount of grains input and output is machine calculated. Eliminates handling by dealer.  Reduces leakages  Consumer can “withdraw” anytime. Estimated cost of wending machine technology is approx. $800 per machine For installation of technology at approx. 5 lakh outlets is $400,000,000. At a rate of Rs. 65/1$, that is Rs. 26000 crore. GOVERNMENT spends approx. 30000 crore on PDS annually, of which leakage and diversion causes 57% loss. That is 17,100 crore. By minimizing leakage, cost of installation will be recovered in 2 years!
  • 5. 2. CERTAIN REFORMS: • The Dealer of FPS to be elected by people in the area of shop. • Decentralization of power from dealer to SHG, which is to be formulated in the area. • Government to train persons from SHG, in terms of usage of technology and fair dealing of food grains. • Different SHG in an area to be elected for a tenure of 6 months for ensuring the food grains are not spoiled, by strictly following government directed procedures. • Based on efficiency(as calculated in slide 6) of SHG, they shall be either allowed to work again • However, these people do not handle grains directly. This will eliminate risk of diversification to open market.
  • 6. • Central planners to take in an extensive set of inputs, then feed them to softwares like SAS to obtain the parameters, on which the modelling of the efficiency of the working of FPS will be done • Next mathematical tools like DEA , TOPSIS are selected on these parameters to work out the efficiency of the delivery of food-grains from FPS • This data will be available on the central database and every FPS will feed their equivalent set of data , for indexing how efficiently they have been performing • If the FPS is under-performing , the volunteers will be re-elected and the old ones will be lightly penalised , like marking their homes (as a mild form of social boycott ) to motivate them to improve performance .
  • 7. BENEFITS: Central government and the people who are entitled to benefits are most responsible in the mechanism. Hence they will be immensely motivated towards ensuring that the process is very efficient Ensuring that handling and delivery of grains is automated, mishandling of the grains is reduced. The role of officials and elected volunteers is just to ensure that the planned policies of government are executed with regard to safety of food-grains and operation of machinery. Also it is convenient for government to select and teach LOCALS who are well versed with the local conditions rather than sending officers to most of the places. Also providing them with employment Using the mathematical tools will ensure that the process is entirely performance based , which is a good thing here since the objective is that no one goes hungry By displaying the performance index of each FPS to the public ,the people can understand how well their local FPS is performing and compare it with the neighboring ones
  • 8. • LOCALS may be apprehensive of using technology. • Ensuring net connectivity and sufficient IT infrastructure in every village in India • Expenditure on construction of warehouses near railway stations, introduction of technology and training persons. • The scope of middle-men must be eliminated as much as possible by ensuring that processes are automated. • It is not possible to completely automate the process as transportation of food-grains from trains to warehouses need to be done manually. • The system requires ,for its success , a pan-India acceptance . If some states decide to remain out of this or devise independent mechanisms , then the positives of this mechanism will be affected.
  • 9. • People will have to be sufficiently educated via advertisement and the benefits of the system to be discussed. • The government needs to put up a considerable one- time investment in the installing of computers and IT services in the length and breadth of the country. • Central government mandated procedures for all state governments to be set up.