'Use of smart cards in PDS can help save Rs 20,000 cr a year'

NEW DELHI: Smart card technology can help India save around Rs 20,000 crore in the PDS by eliminating ghost beneficiaries who cause huge leakage in the system, a senior government official said today.

Referring to the success of smart card based national health insurance scheme, Anil Swarup, Additional Secretary in the Cabinet Secretariat, said: "The technology can bring in transparency in the PDS and the country can save around Rs 20,000 crore per annum."

The technology helps keep a track on what is happening on real time basis.

"The data can be sent for periodic analysis to find how much grain is needed at which shop. The whole system takes a transparent shape," Swarup said.

The Public Distribution System (PDS) is run jointly by the Centre and state governments.

To check diversion of foodgrains meant for poor people, states are deploying various technologies like food coupons, barcoded ration cards, etc for delivery of PDS commodities to the beneficiaries.

Speaking on multiple applications of smart cards, Rajat Moona, Director, CDAC Technology, said that there is an emerging need for a single card which serves the purpose for different services.

"We have not moved beyond providing identity solutions and digital signature. There is need to look for more applications," he said.

Apart from national health insurance scheme, the smart card technology is being used by the transport department for driving licence and vehicle registration certificates.

There are about 37 million driving licences and 41 million RCs have been issued in about 24 states on smart card technology, according to industry estimates.