Central Idea

• India’s National Food Security Act, 2013 (NFSA) governs the largest beneficiary-centric program, the Targeted Public Distribution System (TPDS), providing food security to 81.35 crore persons every month. The government is now implementing the Scheme for Modernisation and Reforms through Technology in Public Distribution System (SMART-PDS). This initiative generates vast amounts of data, which can be leveraged to improve the delivery of other central schemes and welfare programs.

Existing challenges for TPDS

• Leakage and diversion of food grains: One of the most pressing issues in the TPDS is the leakage and diversion of food grains meant for beneficiaries, leading to corruption and losses in the system. This problem is primarily due to poor monitoring, lack of transparency, and weak enforcement mechanisms.
• Inaccurate targeting of beneficiaries: The TPDS often suffers from errors in identifying eligible beneficiaries, resulting in the exclusion of deserving households and the inclusion of ineligible ones. This misidentification can be attributed to outdated data, lack of verification mechanisms, and manipulation of records.
• Inefficient supply chain management: TPDS faces logistical challenges in transporting, storing, and distributing food grains across the vast country. Inadequate storage facilities, poor transportation infrastructure, and delays in procurement and distribution contribute to wastage and inefficiencies in the system.
• Limited portability of benefits: Until recently, the TPDS lacked portability, which meant that beneficiaries could only access their food grains from designated Fair Price Shops (FPS) in their home states. This restriction made it difficult for migrant workers and their families to access their entitled benefits.
• Lack of transparency and accountability: Corruption, fraud, and manipulation of records are pervasive issues in the TPDS, partly due to the lack of transparency and accountability in the system. The absence of real-time monitoring and the reliance on manual record-keeping exacerbate these problems.
• Technological constraints: Many states and union territories in India face technological constraints in implementing IT-based solutions for TPDS operations. Limited access to IT hardware, software, and technical manpower can hinder the adoption of technology-driven reforms, such as electronic Point of Sale (ePoS) devices and biometric authentication systems

What is SMART-PDS?

• SMART-PDS (Scheme for Modernisation and Reforms through Technology in Public Distribution System) is an initiative by the Indian government aimed at improving the efficiency, transparency, and accountability of the country’s Targeted Public Distribution System (TPDS).

The key objectives of the SMART-PDS initiative

• Preventing leakage of food grains: By leveraging technology, SMART-PDS aims to reduce diversion and pilferage of food grains, ensuring that the intended beneficiaries receive their due share of food subsidies.
• Enhancing efficiency in the distribution chain: The initiative focuses on streamlining the supply chain from procurement to distribution by incorporating technology-driven solutions, such as electronic Point of Sale (ePoS) devices, real-time monitoring, and tracking systems.
• Data-driven decision-making: Data Analytics on the TPDS ecosystem generates critical information about beneficiaries, food security needs, and migration patterns, addressing the long-standing challenge of credible and dynamic data for efficient delivery of central welfare schemes to vulnerable sections of society.
• Convergence and integration with AI: The national leadership’s push for trans-ministerial convergence and AI integration can be a game-changer for both people and governments, bringing accountability across all programs.
• Technology-led PDS reforms: The Centre plans to use data analytics, BI platforms, and ICT tools to standardize PDS operations through technology integration with FCI, CWC, transport supply chain, Ministry of Education, Women and Child Development, and UIDAI. This is expected to overcome state-level technological limitations in PDS operations and institutionalize an integrated central system for all PDS-related operations across states/UTs.
• Aadhaar authentication and ePoS devices: With 100% digitization of ration cards and the installation of ePoS devices, nearly 93% of the total monthly allocated foodgrains are distributed through Aadhaar authentication mode.

Integrated Management of Public Distribution System (IM-PDS)

• The government has launched the IM-PDS to implement One Nation One Ration Card (ONORC), create a national-level data repository, and integrate data infrastructure/systems across ration card management, foodgrain supply chain, and FPS automation.
• The ONORC plan has recorded over 100 crore portability transactions since its inception in 2019.

SMART-PDS benefits beyond ration distribution

• The data generated by SMART-PDS has become a tool for central ministries and state governments, benefiting initiatives like e-Shram Portal, Ayushman Bharat, and PM-SVANidhi Yojana.
• The Ministry of Agriculture and Farmers’ Welfare (MoAFW) plans to use ONORC/ration card data to map beneficiaries, and seamless tracking of nutrition from ICDS centers to PM Poshan will become a reality with Aadhaar numbers for the newly born.

Conclusion

• The transformative potential of SMART-PDS goes beyond food security, enabling data-driven decision-making, convergence, and integration with AI for improved delivery of central schemes and welfare programs across India.

Mains Question

Q. Despite several efforts taken by the government the Targeted Public Distribution System still faces various challenges. In this backdrop discuss the new initiative of SMART-PDS and its key features