1. PLUGGING LEAKS:IMPROVING
REACH AND EFFICENCY OF
PUBLIC DISTRIBUTION SYTEM
INTEGRATED MONITORING MECHANISM
PRESENTED BY
TEAM: VIDYA 123
ABIRAJ MR
JOEL JOY
RAHUL RAMESH
SREEHARI.K
TINTO PAUL

2. PROBLEMS,CAUSES AND
REASON FOR CHOSSING
Black marketing of
products received from
FCI godowns
•Lack of good Profit
for money invested
•Small annual
income
•Greed and
corruption
Substitution of good
goods with poor ones
•Lack of good Profit
for money invested
•Small annual
income
•Greed and
corruption
Non beneficiaries
given befit
beneficiaries ignored
•Corruption in
executive
•Lack of proofs
Choosing of problem
Black marketing , substituting goods and no proper identification of beneficiary
Reasons
Loss of huge amount to the government
Affecting life of millions of BPL families
Thriving example of mismanagement of a government scheme

3. INTEGRATED MONITORING SYSTEM
 Two independent computer network linked to a common database
 One network will have database of beneficiaries
 Second network will look the distribution of grains.
 The first network will be a state network having 3 different layers
 Local layer
 District layer
 State layer
 The second network would be a central network having 3 layers
 FCI regional layer ( layer)
 FCI zonal layer (2 layer)
 Central layer(1 layer)
 The both network would be integrated into common database for monitoring the right
person get the benefit
 Ration shop owner apathy of not earning enough should be considered and be given
some more facilities with improved salary
 This would act as guard to prevent person force to black market for survival

4. IMPLEMENTATION –FIRST NETWORK
 This layer will make ration card
issuing a fully computerized service
 NGO’s will monitor the card issuing
criteria
 The cards issued at local level
 The data of each card along with
Aztec code on it would be fed to
computer server at local level
 Aztec code will be issued to each
card
 The criteria of assessment would be
fed to the computer system
 A complaint officer could be
recruited to receive and verify
complaints
 The complaint officer would submit
complaints and enquiry report to
district officer
 The complainer could approach
state officer (via proper channel),
district officer if not heard at local
level
 All the data in the local server could
be accessed by the district officer for
accessing complaints
 The state level server would get the
relevant information from the
district server to have policy
decisions
 The server could also ask for
specific information to district server
for complaint verification

5. IMPLEMENTATION –SECOND NETWORK
 This network would make the
grain transportation monitoring
computerized
 The Central network could have to
collect data of grain collected to a
central server
 The state would get an allocation
of the grain which when sent
should be entered to state server .
 The grain would be sent to
different Distribution centers
 The grain received would be
entered to the distribution sever
 The grain would be packed into
distribution kits with an Aztec
code on each
 This needs workforce and
machinery ,automatic packing has
been successfully done by
corporate giants and could be used
 The ration shop dealer would enter
the amount of grain to the
computerized server
 Ration card dealer would be given
a machine compactable to read the
Aztec code
 The ration card dealer would have
to scan the Aztec code of the
ration card and supplier kit
 This would help to see that who
get what.

6. IMPLEMENTATION –SECOND NETWORK
 Each layer cannot see the data
entered in layer above
 Any layer can see the data entered
in the layer below
 Correction of data will not be
allowed
 This system will help us to decide
the leaks in the layer
 This would also ensure that the
good quality items get to the
people intended and is not black
marketed
 There would be a seal on the
distribution kit and a public
awareness not to accept without
seal
 There would be a complaint
officer who would complaints on
the braked seal delivery
 Complaint officer should verify
the details and take appropriate
action within 24 hours
 The complaint officer should be in
duty when the ration shops are
functioning.
 The each layer should verify the
bottom layer and account for all
the grain or the material
transported
 The error should be seen and
investigation should be launched

7. RATION SHOP OWNERS
 The present system gives the
ration shop owners commission to
the products they sell
 The commission earned by
average shop owner is Rs 7000
this is a very small income
 They would have to spend
somewhere between Rs 5000 on
running the shop
 To get away with this government
should give them fixed salary of
Rs 5000 with the present
commission for them to improve
standard of living
 Ration card dealers offspring be
given some sort of advantage
considering the fact that his father
is helping government in fight
against hunger
 The ration card owners be also
given permission to sell other
goods within their ration shop
(other than that is sold by PDS
system)
 In case of corruption reported he
be striped of the ration shop
dealership and be fined which act
as guard against corruption
 These measures would make the
dealership of ration shops
attractive and also help in
accountability and allow fair
practices in distribution

8. COST
Initial
investment
Capital on
computerization
(1000 crores)
Packaging
facilities
(30000 crores)
Software (500
crores)
Running cost
Internet
connectivity
(350 crores)
Extra burden on
government due to
salary (3000
crore)
Running cost of
packaging
facilities (1500
crores)

9. SOURCES AND EFFECIENCY
 Government spend 75000 crores
on PDS system with 43%
efficiency
 427000 is lost
 Many still do not have access to
food grains
 If this is implemented the leakage
can be reduced
 Government thus can spend less
on PDS system with better
efficiency
 With this government need to
spend only around 60000 crores as
many are excluded could get
involved
 The government could save
around 15000 crores
 Assuming a running cost of 5000
crores
 Government would have 10000
crores saving each year
 Thus the capital invested could be
recovered in the gap of 3-4 years
 Thus investing this in a phased
manner ultimately saves a huge
amount of cost for government

10. MONITORING MECHANISM AND EFFICENCY
 Monitoring body to check and
recheck the data entered in the
server
 This could help us to find the
leakages in various parts
 This would help vigilance and
other agencies to clamp down on
the specific area where leakage
happens
 The agencies currently uses
intelligence wing this is not very
effective in cracking leakage
 Further sometimes intelligence go
wrong and there is an empty catch
 The public be made aware to
inform any movement of
suspicious packed products with
FCI marks
 An awareness be conducted for
beneficiaries to report the delivery
of goods with broken seal
 This ensures good quality
products supplied reaches the
needy
 No mechanism has ever been
effective on this front

11. CHALLENGES AND MITIGATION
 Corruption in issuing BPL cards to
APL families can be stopped to a
limit only and BPL cards to BPL
families cannot be assured
 Delay in complaint investigation
even with clause
 Serious anti corruption law be
made
 Make the criteria for BPL cards
crystal clear
 In such cases suspend the officer
until enquiry is complete and also
never recruit tainted officers to
this jobs
CHALLENGES MITIGATION

12. REFERENCES
 TENTH FIVE YEAR PLAN 2002-07 VOL 2 CHAP 3.4
 Performance Evaluation of Targeted Public Distribution System report by
planning commision
 Wikipedia Public distribution system