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Government approves PDS digitization, grants 884cr

Date: 05-10-2012
The Cabinet committee on economic affairs on Thursday has approved an outlay of Rs 884.07 crore for the first phase of the end-to-end computerization of Targeted Public Distribution System (TPDS) on a cost-sharing basis with states, to detect and cancel bogus ration cards and better targeting of subsidies. Digitization of beneficiary database and computerization of supply-chain are expected to be implemented by March 2013 and October 2013, respectively.

Around 18 crore households, including above poverty line and below poverty line, will get subsidized ration under the TPDS. The cost would be equally shared by both the Centre and state governments for the end-to-end computerization of TPDS. For the northern states, the Centre will give 90 per cent and the states will bear only 10 per cent. Finance Minister P Chidambaram has opined that the computerization of supply-chain will enable  tracking of the movement of food grains up to fair price sop (FPS) level and through this it can address the problem of leakage and diversion.

Moreover, CCEA also gave its approval to new variant of the scheme for supply of imported pulses at subsidized rates to BPL households and also extended the scheme for distribution of subsidized imported edible oils through state governments and Union territories till September 30, 2013. According to the plan, SMSs, e-mails, toll-free numbers will be used to inform the beneficiaries about the availability of TPDS supplies in the ration shops, which will ensure timely and transparent distribution of food grain.