Lok Sabha Question No. 3172 (UNSTARRED), answered on 2017-03-21
Subject: Computerization of Fair Price Shops
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: SANJAY JAISWAL, PRATHAP SIMHA

## GOVERNMENT OF INDIA

## MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

## DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA

## UNSTARRED QUESTION NO. 3172 TO BE ANSWERED ON 21 ST   MARCH, 2017

## COMPUTERIZATION OF FAIR PRICE SHOPS

3172. DR. SANJAY JAISWAL: SHRI PRATHAP SIMHA:

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

PUBLIC

- (a) whether  the  Government  is  in  the  process  of  computerising  all    Fair Price Shops across the country, if so, the details thereof, State-wise along with the progress on the front and the expected  timeline for completion;
- (b) the  steps  being  taken  by  the  Government  to  ensure    direct  benefit transfer to beneficiaries under the Public Distribution System;
- (c) whether the Government plans to make Aadhaar card essential although  not  mandatory,  for  subsidized  foodgrains  under  the  National  Food Security Act (NFSA), if so, the details thereof;
- (d) whether the Government has prepared a detailed roadmap and an action plan along with State-wise targets to implement the various modes to cashless transactions at all Fair Price Shops and if so, the  details of plan of action in this regard since cashless payments are mandated only in 38,000 ration shops out of the total 5.27 lakh shops  across the country; and
- (e) whether  any  consultations  have  been  held  with  States/UTs  to  enable cashless  transactions  in  all  FPSs  and  to  monitor  the  progress,    if  so,  the outcome thereof?

## A N S W E R

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

- (a):  Department  has  prepared  guidelines  for  Fair  Price  Shop  (FPS)  automation, which have been shared with all States/UTs. FPS automation involves, installation of Point of Sale (PoS) devices at FPS  for authentication of beneficiaries,  recording  of  sales  to  beneficiaries  at  the  FPS;  and  uploading  of transaction  data  in  central  server.  Out  of  5.26  lakh  FPSs  across  the  country, about  1.79  lakh  FPSs  have  been  automated  so  far.  Govt.  aims  to  provide automation facilities in 3 lakh FPSs by March, 2017.
- (b): The 'Cash Transfer of Food Subsidy Rules, 2015' was notified on 21-082015  under  the  National  Food  Security  Act,  2013,  scheme  of  providing  food subsidy in cash into the bank account of entitled households to enable them to purchase foodgrains from open market, can be taken up in the identified areas for  which there is a written consent of the State Govt./UT Administration. The Direct Benefit Transfer (DBT) scheme for food grains have been implemented in 3 UTs namely Chandigarh, Puducherry and partially in Dadra & Nagar Haveli.

- (c): Department  has  issued  a  notification  dated  8 th   February,  2017  in pursuance of the provisions of  Section 7 of the Aadhaar (Targeted Delivery of Financial  and  Other  Subsidies,  Benefits  and  Services)  Act,  2016  for  use  of Aadhaar  as  identity  document  for  delivery  of  services/benefits/subsidies  that simplifies  the  Government  delivery  processes,  brings  in  transparency  and efficiency  and  enables  beneficiaries  to  get  their  entitlement  directly  in  a convenient and seamless manner and Aadhaar obviates the need for producing multiple documents to prove one's identity. An individual eligible to receive the subsidised  food  grains/Cash  Transfer  of  Food  Subsidy  under  NFSA  and  having valid Ration Card issued by State Governments/UT Administration is required to furnish proof of possession of Aadhaar number or undergo Aadhaar authentication. Any new eligible beneficiary who is selected by State Governments/UT Administration for receiving subsidised food grains/Cash Transfer  of  Food  Subsidy  under  NFSA  is  also  required  to  furnish  proof  of possession  of  Aadhaar  number  or  undergo  Aadhaar  authentication.  All  such eligible beneficiaries entitled to receive subsidised food grains/Cash Transfer of Food Subsidy under NFSA, who do not possess the Aadhaar number or, are not yet enrolled for Aadhaar, but are desirous of availing subsidised food grains/Cash  Transfer  of  Food  Subsidy  under  NFSA  are  required  to  make application  for  Aadhaar  enrolment  by  30 th   June,  2017,  provided  he  or  she  is entitled to obtain Aadhaar as per Section 3 of the said Act.
- (d) & (e): Department has prepared a detailed roadmap and an action plan along-with  State-wise  targets  to  implement  the  various  modes  of  cashless transactions. However, complete roll out of the strategy for cashless mechanism  depends  on  readiness  of  the  States/UTs,  availability  of  adequate infrastructure, status of financial inclusion, level of Aadhaar seeding, awareness level  of  beneficiaries  and  telecom  coverage  etc.  Accordingly,  all  States/UTs Governments have been advised to adopt a phase wise approach, starting with Metropolitan Cities, Municipal Corporations, Municipalities, District Headquarters and other urban areas where the conditions allow for an effective implementation and then eventually expanding it to semi-urban and rural areas. This Department had briefed all Food Secretaries of States/UTs through Video Conferencing to adopt various modes of cashless transactions at all Fair Price Shops. Secretary (F&PD) also shared the roadmap with state-wise targets to all Chief Secretaries/Administrators. A national level Conference was also held on 19.01.2017 on 'PDS Reforms & Cashless Environment' with State Food Ministers and Secretaries of Food, Civil supplies and Consumer Affairs of all States/UTs at Vigyan Bhavan, New Delhi. Hon'ble Food Ministers of all States/UTs have been requested to enable cashless transactions in all FPSs and monitor the progress. At  present,  more  than  49,000  FPSs  are  having  cashless  transactions  facilities across the country.

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