1.       The PDS Control Order, 2001 came into existence almost eight years ago. The Targeted Public Distribution System had been in operation since 1997.  It was realized that the large scale diversion can be curbed by computerization and therefore provision was made for providing computerized codes to the Fair Price Shops (FPS) and monitoring the functioning of the Public Distribution System at the FPS level through the computer network of the National Informatics Center (NIC) installed in the District NIC centers.

The Committee in its report submitted to the Hon’ble Supreme Court on 21.8.2007, pertaining to Delhi, had suggested that PDS operations be computerized and human intervention be reduced to the extent possible, so as to check the diversions and leakages which plague the system at present.

Recognising the fact that the need of the hour is the end to end computerization of the Public Distribution System, the Committee is of the view that if the disbursement to the beneficiaries in the State can be equated to the allocation to the State, there can be no diversion. In order to achieve this objective the first and foremost is the automation of allocation process at all stages. The State Government gets allocation of food grain from the Central Government though the Food Corporation of India (FCI). The NIC has installed and running the application called IISFM at all the FCI centers. The allocation is received by the States in their godowns and then the State makes District wise allocation. The District Supply Officer then makes allocation to each Block/Taluk, from where allocation is made to each FPS. It is necessary that each of these steps is computerized. The information is conveyed through the District NIC centers to the Food and Supplies department of the State and to the FCI. The allocation for the next month at each level should be made on the basis of the in formation so collected through the computer network.

In the present Public Distribution System (PDS),  paper ration cards are issued to eligible families and wheat, rice, sugar and kerosene oil etc are being offered at subsidised prices as per their eligibility recorded in the ration cards.  The record of eligibility and transactions is maintained manually both in the ration cards and the register maintained in the fair price shops. This record keeping is not foolproof and is prone to human errors and tampering.  Foodgrains are transferred from FCI store to States and then to regional levels.  There is lot of pilferage at every level and no foolproof central monitoring system is there.  Other deficiencies of this system are:

    • Multiple ration cards being issued under a single name
    • Faulty system of issue and record keeping
    • Pilferage – PDS foodgrains find way to market and all the lot don’t reach the eligible/needy person
    • No bio-matric identification for the users
    • No central monitoring system to track the carriage trucks
    • The delivery mechanism has no RFID (Radio Frequency Identification Device)

There is a need for foolproof monitoring system starting from central store to fair price shops covering transactions at all levels and transport.

The Committee is of the opinion that the ration card database should be digitized and distribution to the beneficiary should be made after biometric identification. However, necessary safeguards must be put in place to ensure that the biometric details of beneficiaries which have been captured for the purpose of automation of the PDS should not be used for non PDS purposes. This would mean that a smart card having the biometric finger prints of the beneficiary will have to be prepared and used for distribution.

In order to achieve this business rules at all levels have to be identified and automated thereby optimizing the internal operations and communications. The following steps have to be integrated to cover the complete food chain.

    • State wise allocation of food grains by Central Government.
    • District wise allocation of food grains by State Government.
    • Block/ Taluk wise allocation of food grains by District Administration.
    • Storage of food grains in godowns
    • Off take of food grains against allocations
    • Distribution of Food grains to the Fair Price Shops.
    • Sale to beneficiary

The Committee held discussions with Dr. B.K Gairla Director General and Ms. Ranjana Nagpal Senior Technical Director, of the National Informatics Centre (NIC). The Committee was informed that the Central Government had approved the implementation of a smart card based computerization project in the state of Haryana and the Union Territory ofChandigarh on a pilot basis which is to be funded by the Central Government. To begin with three districts of Haryana have been identified. In terms of the detailed project report made available to the Committee, the smart card is to be used in conjunction with a hand held battery operated device referred to as a Point of Sale (PoS) device.

Keeping in view the fact that the supply of electricity in the remote, rural areas of the country is erratic and undependable, the Committee enquired from the NIC as to how the battery contained in the PoS device would be recharged when electricity supply was not available. The Committee was informed by the NIC that it had nothing to do with the setting up of the necessary infrastructure. The Committee found this response extremely disturbing in as much as the availability of avenues for charging the PoS and making connectivity available are essential requirements for the successful implementation of the computerized model. The Committee therefore in the attempt to identify alternative sources of energy as well as means to ensure that connectivity for uploading of data is provided held discussions with officials from, Dr. B. Bhargava Ministry of New and Renewable Energy, Government of India, Mr. P.K Panigrahi Senior DDG (BW) Department of Telecommunications, Mr. D.P Singh General Manager BSNL, Mr. Ajay Bhattacharya Administrator Universal Service Obligation Fund, Private entities involved in the field of solar energy. The Committee also held discussions with representatives of the Governments of Haryana, Karnataka, Chhatisgarh, Jharkhand, Orissa, Uttrakhand,Chandigarh and examined reports of computerization models being implemented or contemplated by other States.

The Committee examined the implementation of a model wherein the end-user/beneficiary can be serviced using a PoSdevice which can be used with a smart card or only with biometrics or with both.

Conclusions:

  • Monitoring the functioning of PDS operations through the use of information and communication technology should be given the highest priority. This is recognized by the PDS Control Order 2001 in Clause 8 read with para 6 (6) of the Annexure to the Order.
  • A centralized /national committee must be set up, consisting of experts from the NIC, DOT, USOF, Ministry of New and Renewable Energy, National Institute for Smart Government to lay down uniform standards for software components which should be binding on States and should be compatible with the IISFM being implemented in the FCI. Subject to this States should be given the freedom to implement the project in the manner they see fit keeping in mind local conditions.
  • The core members of the Central and State Committees should preferably not be   shifted till specified targets are achieved.
  • An independent monitoring agency to be appointed to monitor the implementation of the project in each state and at national level.
  • The system must be web-enabled upto the national level so that transaction details are readily available on the internet as this will make PDS operations transparent.
  • Timelines should be fixed for the implementation of the process of computerization of PDS operations, with the aid and assistance of the Central and State governments.
  • Measures to harness alternative/renewable sources of energy such as solar energy must be implemented.
  • Infrastructure being established using the Universal Service Obligation Fund and under the State Wide Area Networks or any other agency (like BSNL) must be made available for facilitating the computerization of PDS operations.

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