Lok Sabha Question No. 607 (UNSTARRED), answered on 2018-02-06
Subject: Losses due to Corruption in PDS
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: BHARTRUHARI MAHTAB, RAHUL RAMESH SHEWALE, SANJAY SHAMRAO DHOTRE

## GOVERNMENT OF INDIA

## MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

## DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA

## UNSTARRED QUESTION NO. 607 TO BE ANSWERED ON 06 TH  FEBRUARY, 2018

## LOSSES DUE TO CORRUPTION IN PDS

607. SHRI BHARTRUHARI MAHTAB:

SHRI RAHUL SHEWALE: SHRI SANJAY DHOTRE:

Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k ea=h be pleased to state:

- (a) whether  the  Government  has  conducted  any  evaluation  study  to check losses due to corruption and leakages in Public Distribution System (PDS) during each of the last three years and the current year;
- (b) if so, the details and outcome thereof and if not, the reasons therefor;
- (c) the  number  of  cases  of  corruption  and  leakages  in  PDS  that  have come to  the  notice  of  the  Government  across  the  country  during  the  said period along with the action taken thereon so far, State/UTwise;
- (d) whether the  Government proposes  to  review  the  functioning  of  the PDS to address the issue of corruption/ leakages and other shortcomings;
- (e) if so, the details thereof and if not, the manner in which corruption/leakages  and  other  shortcomings  are  likely  to  be  addressed  for effective implementation of the PDS in the country; and
- (f) the other steps taken/being taken by the Government in this regard?

## A N S W E R

MINISTER OF STATE FOR  CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION (SHRI C. R. CHAUDHARY)

(a)&(b)    An evaluation study on the functioning of TPDS/NFSA in six selected States  i.e  Assam,  Bihar,  Chhattisgarh,  Karnataka,  Uttar  Pradesh  and  West Bengal  was  conducted  by  National  Council  of  Applied  Economic  Research (NCAER) in 2014-15. The study revealed certain shortcomings/ deficiencies in and leakages/  diversion  of  foodgrains,  details  of  which  are  at  Annexure  -I  &  II. The  evaluation  study  report  submitted  by  NCAER  was  sent  to  the  States the functioning of TPDS/NFSA  such  as  inclusion/exclusion errors concerned for taking necessary remedial measures.

- (c)       Targeted Public Distribution System (TPDS) is operated under the joint responsibility of the Central and the State/UT Governments. Central government is responsible for procurement, allocation and transportation of foodgrains upto the designated depots of the Food Corporation of India. The operational  responsibilities  for  allocation  and  distribution  of  foodgrains within  the  States/UTs,  identification  of  eligible  beneficiaries,  issuance  of ration cards to them and supervision over and monitoring of functioning of Fair Price Shops (FPSs) etc. rest with the concerned State /UT Governments. They are also competent to take action against those indulging in malpractices  in  TPDS  by  invoking  provisions  of  relevant  clauses  of  TPDS Control Order, 2015. Accordingly, complaints received in this department are forwarded to concerned State/UT for taking appropriate action. The number of  complaints,  received  in  the  department  during  the  last  three  years  and current year, with respect to different State/UT Governments, is at AnnexureIII.

National Food Security Act, 2013 provides for State Food Commission, District  Grievance  Redessal  Officer,  Vigilance  Committees  at  FPS,  Block, District,  and  State  levels  and  social  audit  for  the  review  and  monitoring  of the functioning of PDS.

- (d)  to  (f)    For  effective  implementation  of  the  Public  Distribution  System (PDS), Government is implementing a scheme on 'End-to-end Computerization of Targeted Public Distribution System (TPDS) Operations'. The  scheme  comprises  digitization  of  ration  cards/beneficiary  and  other databases, online  allocation,  computerization  of  supply-chain  management, setting  up  of  transparency  portal  and  grievance  redressal  mechanisms. Besides, Central Govt. has also asked States/UTs to opt for any of the two models  of  Direct  Benefit  Transfer  -  Cash  transfer  of  food  subsidy  into  the bank  account  of  beneficiaries  or  Fair  Price  Shop  (FPS)  automation,  which involves installation of Point of Sale (PoS) device at FPS, for authentication of beneficiaries and electronic capturing of transactions. The cash transfer of food subsidy is being implemented  in 3 UTs  namely Chandigarh, Puducherry w.e.f. 01-09-2015 and partially in Dadra & Nagar Haveli w.e.f. 0103-2016.  So  far,  more  than  2.94  lakhs  out  of  5.27  lakhs,  FPSs  have  been automated across the country.

****

## ANNEXURE I

ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (a)  &  (b)  OF  THE UNSTARRED QUESTION NO. 607 DUE FOR ANSWER ON 06.02.2018 IN THE LOK SABHA.

(Study awarded - March,2014) (Report submitted- September, 2015)

## Inclusion/Excusion errors indicated in NCAER Report:

|   Sl. No. | State         |   Inclusion Error (in %) |   Exclusion Error (in %) |
|-----------|---------------|--------------------------|--------------------------|
|         1 | Assam         |                    28.49 |                    70.84 |
|         2 | Bihar         |                    18.38 |                    30.45 |
|         3 | Chhattisgarh  |                    22.09 |                     1.93 |
|         4 | Karnataka     |                    31.24 |                    16.02 |
|         5 | Uttar Pradesh |                    22.16 |                    63.12 |
|         6 | West Bengal   |                    46.6  |                    29.77 |

***

## ANNEXURE II

ANNEXURE  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  &  (b)  OF  THE UNSTARRED QUESTION NO. 607 DUE FOR ANSWER ON 06.02.2018 IN THE LOK SABHA.

Consolidated figures of leakages/diversion of foodgrains (rice & wheat) indicated in NCAER Reports.

## A. NFSA states

| S.   | State        | Leakage (in%)   |
|------|--------------|-----------------|
| No.  |              |                 |
| 1.   | Bihar        | 16.28           |
| 2.   | Chhattisgarh | 6.95            |
| 3.   | Karnataka    | 17.34           |

## B. Non- NFSA states

| S.No.   | State         | Card category   |   Leakage (in %) | Overall average leakage (in %)   |
|---------|---------------|-----------------|------------------|----------------------------------|
| 1.      | Assam         | APL             |            70.68 | 39.86                            |
|         |               | BPL             |            36.76 |                                  |
|         |               | AAY             |            12.13 |                                  |
| 2.      | Uttar Pradesh | APL             |            35.29 | 24.43                            |
|         |               | BPL             |            32.87 |                                  |
|         |               | AAY             |             5.13 |                                  |
| 3.      | West Bengal   | APL             |            38.75 | 25.84                            |
|         |               | BPL             |            28.19 |                                  |
|         |               | AAY             |            10.59 |                                  |

## ANNEXURE III

## ANNEXURE REFERRED TO IN REPLY TO PART (c) OF THE UNSTARRED QUESTION  NO.  607  DUE  FOR  ANSWER  ON  06.02.2018  IN  THE  LOK SABHA.

STATEMENT:   COMPLAINTS ON TPDS RECEIVED  IN THE DEPARTMENT FROM INDIVIDUALS, ORGANISATIONS & THROUGH MEDIA REPORTS ETC FROM 2015 TO 2018 (upto 31.01.2018)

| S. No.   | State/UT          | 2015   | 2016   | 2017   | 2018   |
|----------|-------------------|--------|--------|--------|--------|
| 1        | Andhra Pradesh    | 8      | 5      | 10     | 2      |
| 2        | Arunachal Pradesh | 1      | -      | -      | -      |
| 3        | Assam             | 34     | 32     | 17     | 2      |
| 4        | Bihar             | 106    | 81     | 169    | 18     |
| 5        | Chhattisgarh      | 6      | 9      | 9      | 1      |
| 6        | Delhi             | 113    | 91     | 98     | 7      |
| 7        | Goa               | -      | 1      | 2      | -      |
| 8        | Gujarat           | 8      | 12     | 9      | 1      |
| 9        | Haryana           | 35     | 34     | 47     | 3      |
| 10       | Himachal Pradesh  | 4      | 5      | 6      | -      |
| 11       | J&K               | 5      | 3      | 4      | -      |
| 12       | Jharkhand         | 32     | 29     | 35     | 7      |
| 13       | Karnataka         | 16     | 22     | 28     | 1      |
| 14       | Kerala            | 16     | 22     | 13     | -      |
| 15       | Madhya Pradesh    | 17     | 24     | 21     | 1      |
| 16       | Maharashtra       | 48     | 62     | 77     | 3      |
| 17       | Manipur           | 6      | 4      | 2      | 2      |
| 18       | Meghalaya         | 7      | 9      | -      | -      |
| 19       | Mizoram           | -      | -      | 2      | -      |
| 20       | Nagaland          | -      | 2      | 2      | -      |
| 21       | Orissa            | 22     | 43     | 22     | 3      |
| 22       | Punjab            | 10     | 7      | 5      | 2      |
| 23       | Rajasthan         | 33     | 59     | 82     | 5      |
| 24       | Sikkim            | -      | -      | -      | -      |
| 25       | Tamil Nadu        | 22     | 33     | 31     | 2      |
| 26       | Telangana         | 10     | 1      | 4      | -      |
| 27       | Tripura           | -      | 1      | 1      | -      |
| 28       | Uttarakhand       | 24     | 21     | 22     | 2      |
| 29       | Uttar Pradesh     | 197    | 461    | 445    | 41     |
| 30       | West Bengal       | 32     | 29     | 49     | 2      |
| 31       | A&NIsland         | -      | 1      | -      | -      |
| 32       | Chandigarh        | 6      | 2      | -      | -      |
| 33       | D&NHaveli         | -      | 1      | -      | -      |
| 34       | Puducherry        | -      | -      | 1      | -      |
| TOTAL    | TOTAL             | 818    | 1106   | 1213   | 105    |