Cabinet approves 1st phase of PDS computerization

NEW DELHI: The Cabinet committee on economic affairs on Thursday approved the first phase of the end-to-end computerization of Targeted Public Distribution System that will cost the Centre and states about Rs 884 crore with the Centre bearing half the cost.

This will kickstart the process of integration of Aadhar into the PDS system, which the government believes will improve targeting of the subsidized grains and reduce leaks. The digitization of records of beneficiaries will help in weeding out fake ration cards and better targeting of subsidies, the government said in a release after the CCEA meeting, “With computerization, the movement of foodgrains upto Fair Price Shop level can be tracked and the problem of leakage and diversion can be addressed” .

Along with the scheme that has already been implemented in some states, SMSs, e-mails , tollfree numbers will be used to track movement and availability of the subsidized rations to bring in transparency. The UPA also revived the distribution of subsidized pulses to those below the poverty line through the PDS network with the CCEA approving a variant of the scheme abandoned in 2008. A subsidy of Rs 20 per kg would be paid to designated importing agencies to a maximum number of BPL cardholders.

The scheme is intended to tide over any possible surge in prices of pulses. The importing government-owned agencies will enter into direct contracts with the states for supply of imported pulses to be distributed under PDS.

The government also decided to extend the period of distribution of subsidized imported edible oils to September 2013 with central subsidy of Rs 15 per kg for import of up to 10 lakh tonnes of edible oils during this period. In wake of the bad monsoon this year lowering the sowing of oilseeds the government has decided to continue with the ban on edible oils’ export.