Centre Approves Rs 25,530 Crore Scheme to Modernise PDS Till 2031
Centre Approves Rs 25,530 Crore PDS Modernisation Scheme

The Centre on Wednesday approved a Rs 25,530 crore scheme to continue and modernise the public distribution system (PDS), including ration transport, dealer support and technology upgrades, until March 2031. The Cabinet Committee on Economic Affairs (CCEA) cleared the umbrella scheme called SARTHAK-PDS for the 16th Finance Commission period.

Scheme Details

The scheme combines two existing programmes related to transport and handling of foodgrains under the National Food Security Act (NFSA) and the SMART PDS technology reform scheme. According to the government statement, the scheme aims to ensure smoother ration delivery, reduce leakages and improve services for beneficiaries covered under the NFSA.

The Centre said the scheme will continue financial support for transporting foodgrains within states and for fair price shop (FPS) dealer commissions. It will also push wider use of technology in ration distribution systems, including real-time monitoring, digital databases and grievance systems.

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Technology Integration

“The Scheme will work towards fulfilling the Government of India's commitment to 81.35 crore persons covered under NFSA,” the government said in a statement. SARTHAK-PDS will use technologies such as Artificial Intelligence (AI), Machine Learning (ML) and Blockchain to improve transparency and efficiency in the system.

Over the last decade, the government has introduced several digitisation measures in the ration distribution system, including Aadhaar-linked ration cards, e-PoS machines at ration shops, online allocation systems and mobile applications such as Mera Ration and Anna Sahayata.

The Centre said the SMART PDS scheme, operational since April 2023, has enabled digitisation and automated supply-chain management across all states and Union Territories.

Expected Benefits

  • Improved efficiency in foodgrain distribution
  • Reduced leakages through real-time monitoring
  • Enhanced transparency using AI, ML and Blockchain
  • Better grievance redressal for beneficiaries

The scheme is expected to benefit over 81 crore people covered under the National Food Security Act, ensuring timely and transparent delivery of ration.

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