The document discusses proposed reforms to India's Public Distribution System to address various issues like targeting of beneficiaries, leakages, and food quality and availability. Some key reforms proposed include: 1) Replacing ration cards with Unique Identification cards with biometric authentication and a database backend for real-time access to beneficiary information. 2) Implementing a mobile fair price shop program using portable shops equipped with electronic devices to better serve remote areas. 3) Setting up localized grain banks and grading systems to reduce transportation losses and ensure food quality before distribution. 4) Involving local communities and elected officials to improve targeting of beneficiaries and spread awareness about the reforms. The proposed reforms aim to introduce technology

1. Team Details:
Anand Agrawal
Mini Gupta
Saquib Amjad
Zaid Pervez
Asher Ahmad Farooqui

2. India is country of vast population, with millions depending on
the PDS for their basic subsistence.
Though the offtake per household has shown some
improvement, yet only 57% of the BPL households are
covered by it.
Malpractices in the system –
•Illegal inclusion of APL families in BPL category.
A 2012 Asian Development Bank study on the subsidies offered
by the PDS observed that the deserving poor receive only 10% of
the intended benefits; 19% of the subsidy goes to the non poor,
illegal diversion and administrative expenses consume 43% and
28% of the subsidy respectively.
•Numerous malpractices make safe and nutritious food
inaccessible and unaffordable to many poor thus resulting in
their food insecurity
Quality of the commodities –
•Leakage during transportation and storage.
•Dealers replacing good supply foods with inferior stock.
In 2011, around 48.3% of the food was lost due to leakages
leading to rise in the subsidy price.
In Bihar, the total central subsidy for off take by the BPL
households is Rs. 50.98 per kg while the intended subsidy cost
was Rs. 4.52 per kg
Allocation of families to BPL, APL and AAY and viability of FPS -
•Omission of poor families due to lack of identification
documents and lack of awareness.
•Implementation of allocation is difficult and often incorrect.
•Delay, losses and unequal distribution at fair price shops. As of
June 2011, only 23% of the ration shops were deemed viable by
an expert committee.
Major
Problems
Faced

3. Overview of solution proposed
Unique Identification
Cards (UID) & swipe
Card Systems
To simplify the procurement
procedure by providing a unique
number for a limited family
members & instant access to
information using barcodes..
Mobile FPS
A portable shop with
various electronic devices
for instant distribution
and better coverage of
areas, difficult to access.
swipe Card
Systems
For instant access
to information
using barcodes on
UID cards.
Database
Management
Online registers to
maintain a record of the
amount of grains received
by each card holder.
Reinvention of
allocation system
to BPL, APL, AAY
Grain Banks and
Grading System
Setting up localised storage
areas and grading on the
quality of grains before the
time of distribution.
Work For Food
Scheme
Employment generation
which works on the basis
of exchange of work done
for PDS commodities.
Communities
headed by
women or office
bearers
Spreading
Awareness

4. To bring a technological transformation in the
system for better management and reduce
reliance on human faculties
UID cards and swipe Systems:
• Ration cards will be replaced by multi purpose cards i.e.
roaming ID cards or UID cards.
• Every information related to the recipient will be stored in the
UID card via biometric scans and all the family data, including the
number of members in the family will be stored in this card.
• During the process of food procurement, the recipient will not
have to bring any additional information with the ration cards.
Instead, they will need to bring only the UID card.
Person in charge:
To set up a channel of
communication between
government and the FPS &
guide over the
implementation
Technician 1:
To maintain the swipe
systems and check for
anomalies in UID cards.
Technician 2:
To register and maintain
connectivity with the
server register maintained
by the government
Locally elected official:
To guide the mobile FPS
via shorter and safer
routes. To interact with
the people and spread
awareness.
Health officer:
To check the quality of
grains & other
commodities and to verify
the grade marked on
them.
Mobile FPS:( For Rural Areas)
 A compact portable multi purpose vehicle to
cover maximum area in a short period of time.
It will ensure better coverage as storage is not
required by these shops.
Around 1 mobile FPS will be operating over 10
FPS
It will consist of the following officials:

5. Server Based Database Management
Server
•Registers the amount of grain given
via UID card
•Keeps track of the mobile FPS via
radar.
State
FCI
Centre
District 2 Case DistrictDistrict 1 District n
…. ..
Tehsil 1 Tehsil 5Tehsil 2 Tehsil 4Tehsil 3
Mobile FPS (1 PER 10 FPS)
Supply and demand
updates of various states
Off take data for
each tehsil

6. Ensuring involvement of locals in the affairs of the system
will ensure the interests of the public
Grain Banks –
• Localized storage of food will cause less transportation delay on the day of distribution and furthermore, it will also reduce the loss
of grains in transportation.
• Few of the current FPSs will be converted to grains banks in rural areas. Mobile FPSs will have access to these storages only. Also
more grain banks will be set up in remote and inaccessible.
• On the day before distribution, mobile FPSs will reach the grain bank, check the condition of the commodities and then distribute it.
• Also these banks will provide a backup option in case there is an extended delay in adjacent areas.
•Amount of grain in any grain bank will be registered on the server & if its value reaches a critical value, instant goods will be delivered
from the nearest grain bank.
•Cooperatives will be set up for the operation of grain banks and they will work in collaboration with the
mobile FPSs.
i. Commodities which are in abundance locally will be sanctioned by the cooperatives in collaboration with the Govt. to be
distributed via FPSs among the needy.
ii. In Tamil Nadu palm oil is procured by the cooperatives and delivered to the FPS.
Allocation System –
• A Government official will work side by side with a temporary local official. The local official will be elected once
every six months.
• This official will ensure that the same rules are applied for all, considering that he will have the interests of his
locality in heart.
•Both of these officials will have to report their weekly activity to the server along with proof to keep a check on
them.
• Allotment will be given based on assessment of lifestyle, income and property.

7. Central
Govt.
PDS
Officials
Duties
Identification of
areas:
• Mobile FPS.
• Godowns.
• Location of
officers according
to number of FPS in
that area.
Grain banks:
• Size allocation.
• Preferable
location.
Privatization:
• Tenders on
various
instruments of
Mobile FPS
• Assembling &
maintenance by
local
technicians.
Establishment
of camps:
• Awareness
camps.
• Issue of UID
cards camps.
•Replacement of
existing ration
cards.
Database &
server
management:
• Privatization of
server.
•Direct storage
of information
by mobile FPS.
Human
resources:
• Locally elected
officials.
• Cooperatives
run by women
and unemployed
sector.
Official
Reports on the state
of the system
Demands resources
for the reported
deficiencies.
Defines and
governs
State
Govt.
Distribution of
commodities
Analyses
independent
of State Govt.

8. ALLOCATION OF TENDERS:
The different components of mobile FPS & machines for generating UID cards will be given
tenders.
Assembling of the Mobile FPS:
These components acquired will by assembled by the local technicians(near to the area where
Mobile FPS has to operate)
DISTRIBUTION OF UID CARDS:
For existing card holders:
On the day of distribution, a biometric scan will be done prior to the submission of ration
cards . This information will be transferred to the server which will pass it on to the UID
generation machine.
UID cards will be generated and distributed among the public before the next date of
allocation of food grains through FPS shops.
Various camps will be setup with existing Govt. camps to spread awareness.
For non existing card holders:
In rural areas Gram Panchayat, in collaboration with the Census Of India will conduct a survey
with an additional column for availability of Ration cards.
MOBILE FPS:
Mobile FPS will be distributed according to the number of FPS shops in a given area. Dates of
distribution of ration will be allocated according to the distance between FPS shops. Mobile
FPS will perform the function of registering the amount of food grains allocated to each
person against the name of the UID card holder.

9. IMPACTS
Real Identification
among
APL/BPL/AAY
families
Better
Availability of
Subsidized items
Access to remote
areas
Improvisation of
quality of food
Reducing
chances of food
shortage
Management of
subsidized items at
Godowns
Making the system
void of human
errors & prejudices
Job Availability as
a trainee
Cooperatives to
provide chance for
employability for
women
Eradication of
leakage through
FPS shops
Installation Of UID Cards
Installation of
Mobile FPS
By Database and
Server
Management
By Introducing FOOD
FOR WORK and
employing trainee for
managing Database
By Grain Banks
and Grading
System
By Database and
Server Management

10. The entire implementaion will cost around INR 850 crores
Vehicles for Mobile
FPS
INR 3lacs per unit
Estimated Cost INR 300
crores
Miscellaneous
Expenditure
(eg, awareness, training
program, etc.)
Estimated Cost INR 100
crores
Computer Units
INR 20,000 per unit
Estimated Cost INR 320
crores
Card Generation
Machines
INR 1.5 lacs per unit
Estimated Cost INR 2.25
crores
Swipe Card Systems
INR 6,000 per unit
Estimated Cost INR 102
crores
Biometric Scan
Units
INR 5,000 per unit
Estimated Cost INR 50
crores
Cost Structure
Post Implementation
Costs

11. C
H
A
L
L
E
N
G
E
S
MITIGATION FACTORS
- Initial Small scale
application
- Increase revenues from
Special Economic Zones.
- Cooperative societies
will reduce the cost
substantially
- Support from local
senior officials.
- Camps and gram
panchayats will increase
awareness
- Issue of tenders,
completing contracts
takes less time.
- Local assembling and
maintenance reduces
the costs involved.
• Cost of biometric scans, mobile devices is very high
• Installation cost and training fee is high.
High initial
investment cost
• Replacements with UID cards requires too much time.
• Issuing authority must be properly instructed and
educated
Replacement of
Ration cards
• High initial investment
• High maintenance and transportation costMobile FPS

12. Governance Process Innovation for Improved Public Service Delivery byNaimur Rahman- OneWorld
Foundation India, New Delhi September 2010
A Study on the Effectiveness of Public Distribution System In Rural Tamil Nadu-The Planning Commission
Government of India, New Delhi
Food security Effectiveness Of Public Distribution System In India-Shailendra Singh, University Of Ljubljana
Targeting and Efficiency in the Public Distribution System Case of Andhra Pradesh and Maharashtra-
Economic And Political Weekly
Performance Evaluation of Targeted Public Distribution System-Programme Evaluation Organisation,
Planning Commission, Government of India March 2005
The PDS System in Kerala: A Review, By Shruthi Cyriac, Vishishta Sam & Naomi Jacob
Envisioning a role for Aadhaar in the Public Distribution System-Unique Identification Authority of India,
Planning Commission, Government of India
Food Subsidies by Chris Edwards, Cato University
The Indian Public Distribution System as Provider of Food Security:Evidence from Child Anthropometry in
Andhra Pradesh-Alessandro Tarozzi, Princeton University, May 2002