Lok Sabha Question No. 3898 (UNSTARRED), answered on 2016-08-09
Subject: Improvement in PDS
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: RAM TAHAL CHOUDHARY, JAGDAMBIKA PAL, RAOSAHEB PATIL DANVE, PRATAPRAO GANPATRAO JADHAV, RAJESH KUMAR DIWAKAR, KRISHNAN NARAYANASAMY RAMACHANDRAN, R. PARTHIPAN, RAKSHA NIKHIL KHADSE, PARAYAMPARANBIL KUTTAPPAN BIJU, NALIN KUMAR KATEEL

## GOVERNMENT OF INDIA

## MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

## DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

## LOK SABHA

## UNSTARRED QUESTION NO. 3898 TO BE ANSWERED ON 9 TH  AUGUST, 2016

## IMPROVEMENT IN PDS

3898. SHRI RAM TAHAL CHOUDHARY:

SHRI JAGDAMBIKA PAL:

SHRI RAOSAHEB DANVE PATIL:

SHRI PRATAPRAO JADHAV:

SHRI RAJESH KUMAR DIWAKER:

SHRI K.N. RAMACHANDRAN:

SHRI R. PARTHIPAN:

SHRIMATI RAKSHATAI KHADSE:

SHRI P.K. BIJU:

SHRI NALIN KUMAR KATEEL:

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 recent surveys/studies by various bodies/organisations/media  companies  have  pointed  out  irregularities  in the Public Distribution System (PDS) in several States including beneficiary inclusion/exclusion  errors,  anomalies  in  number  of  cards  and  approved beneficiaries and  if so, the details thereof along with the existing monitoring mechanism to check such irregularities, State-wise;
- (b) whether some  short term and long term measures  have been recommended to improve the PDS  and  if  so,  the  details  thereof  and  the reaction of the Government thereto along with the action plan formulated for implementation of the said measures;
- (c) whether  the  Government  has  issued  any  direction/advice  to  the States to strengthen PDS and ensure supply of foodgrains to poor people and  if  so,  the  details  thereof  along  with  the  reaction  of  the  States Governments thereto, State-wise;
- (d) whether the Government is implementing any scheme for computerization  and  linkage  of  PDS  with  Aadhaar  and  involvement  of private players in supply chain management and if so, the details and the present status thereof, State-wise; and
- (e) the other measures taken by the Government to ensure that all the poor and needy/deserving families are covered under PDS and non-eligible families are excluded from the list of beneficiaries?

## A N S W E R

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

- (a):   This Department has been getting the functioning of Targeted Public Distribution  (TPDS)  evaluated  by  different  agencies  from  time  to  time. Recently,  an  evaluation  study  of  the  functioning  of  TPDS  has  been  got conducted through National Council of Applied Economic Research (NCAER)  in  respect  of  6  States  namely  Assam,  Bihar,  Chhattisgarh, Karnataka,  Uttar  Pradesh  and  West  Bengal.  The  evaluation  study  has revealed certain shortcomings/deficiencies in the functioning of TPDS such as inclusion/exclusion errors and leakages/ diversion of foodgrains, details of  which  are  at  Annex-I  &  II.  The  report  received  has  been  sent  to  the States concerned for taking necessary remedial measures to remove the deficiencies noticed in the functioning of TPDS.

In  terms  of  the  Public  Distribution  System  (Control)  Order,  2001, State/UT  Governments  are  to  review  the  lists  of  BPL  and  AAY  families every year for the purpose of deletion of ineligible families and inclusion of eligible  families. Similarly  as  per  Clause  4  of  the  TPDS  (Control)  Order, 2015 State/UT Government shall make all endeavours to eliminate bogus or ineligible ration cards as a continuous exercise. The exercise of deletion of bogus/ineligible  cards  and  inclusion  of  eligible  families  is  a  continuous process and State Governments are to periodically carry out the same.

- (b) & (c):   Strengthening  and  streamlining of Targeted Public Distribution System (TPDS) is a continuous endeavour. To improve functioning of TPDS and effective implementation of it, Government has been regularly issuing advisories  and  holding  meetings,  conferences,  etc.  wherein  State/UT Governments  are  requested  for  review  of  list  of  beneficiaries,  improving the offtake of allocated foodgrains, ensuring timely availability of foodgrains at Fair Price Shops (FPSs), greater transparency in functioning of  TPDS,  improved  monitoring  and  vigilance  at  various  levels,  improving the viability of FPS operations, etc. The National Food Security Act (NFSA), 2013      also  contains  measures  for  reforms  in  TPDS,  to  be  under  taken progressively  by  the  Central  and  State/UT  Governments.  These  reforms include cash transfer, door-step delivery of foodgrains at the FPS, application  of  information  and  communication  technology  tools  including end  to  end  computerization  preference  to  public  institutions/bodies  in licensing of FPS,etc.

(d)  &  (e):          With  a  view  to  reform  and  modernize  the  Targeted  Public Distribution  System  (TPDS),  Government  has  initiated  a  plan  scheme  on 'End-to-end Computerization of TPDS Operations during 12th Five Year Plan (2012-17) on cost sharing basis with the States/UTs. The Costs are being shared on 90:10 basis with North Eastern States and on 50:50 basis with other States/UTs. This scheme comprises activities, namely, digitization of ration  cards/beneficiary  and  other  databases,  computerization  of  supplychain  management,  setting  up  of  transparency  portals  and  grievances redressal mechanism.  Further, guidelines for Fair Price Shop (FPS) automation have been sent to All States/UTs on 11.11.2014. FPS automation involves, installation of Point of Sale (PoS) devises at FPS for biometric authentication of beneficiaries, recording of sales to beneficiaries  at  the  FPS,  and  uploading  of  transaction  data  in  central server.

The  activity-wise  progress  in  States/UTs  as  on  26.07.2016  is  at Annex-III.

In  order  to  identify  and  weed-out  duplicate  /  ineligible  beneficiaries from  the  TPDS,  and  to  enable  better  targeting  of  food  subsidies  Government  is  undertaking  Seeding  of  Aadhaar  number  in  ration  cards  / beneficiaries database in all the States and Union Territories.

For checking of leakages and diversions of foodgrains, Government is pursuing with all States and UTs to opt for Direct Cash Transfers of food subsidy (i.e. DBT for foodgrains) to eligible beneficiaries.

****

## ANNEX REFERRED TO IN REPLY TO PART (a) OF THE LOK SABHA UNSTARRED QUESTION NO.3898 DUE FOR ANSWER ON 9.08.2016

## Inclusion/Exclusion errors indicated in NCAER Report:

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

|   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 |

****

## ANNEX REFERRED TO IN REPLY TO PART (a) OF THE LOK SABHA UNSTARRED QUESTION NO.3898 DUE FOR ANSWER ON 9.08.2016

## Figures of leakages/diversion of foodgrains (rice & wheat) indicated in NCAER report.

(Study awarded - March,2014)

( Report submitted- September,2015)

## NFSA states

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

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

****

## Non- NFSA states

## Annex-III

## ANNEX REFERRED TO IN REPLY TO PARTS (d) & (e) OF THE LOK SABHA UNSTARRED QUESTION NO.3898 DUE FOR ANSWER ON 9.08.2016

## Status of End-to-End Computerization of TPDS Operations

## (as on 26.07.2016)

| Sl.   | States/UTs          | Digitization of Ration Cards   | Aadhaar Seeding in RCs   | Online Allocation of Foodgrains   | Computerization of Supply-chain Management   | Transparency Portal   | Online Grievance Redressal   | Toll Free Helpline Numbers   | Operational ePoS   |
|-------|---------------------|--------------------------------|--------------------------|-----------------------------------|----------------------------------------------|-----------------------|------------------------------|------------------------------|--------------------|
| 1     | Andaman &Nicobar    | 100%                           | 33%                      | S.Andaman                         | -                                            | Yes                   | Yes                          | Yes                          | 3                  |
| 2     | Andhra Pradesh      | 100%                           | 100%                     | Implemented                       | Implemented                                  | Yes                   | Yes                          | Yes                          | 28,942             |
| 3     | Arunachal Pradesh   | 100%                           | 1.57%                    | -                                 | -                                            | Yes                   | -                            | Yes                          | 0                  |
| 4     | Assam               | 100%                           | -                        | Implemented                       | -                                            | Yes                   | Yes                          | Yes                          | 0                  |
| 5     | Bihar               | 100%                           | 0.06%                    | Implemented                       | Implemented                                  | Yes                   | Yes                          | Yes                          | 0                  |
| 6     | Chandigarh          | 100%                           | 95%                      | NA                                | NA                                           | Yes                   | Yes                          | Yes                          | DBT (Cash)         |
| 7     | Chhattisgarh        | 100%                           | 100%                     | Implemented                       | Implemented                                  | Yes                   | Yes                          | Yes                          | 11,828             |
| 8     | Dadra &Nagar Haveli | 100%                           | 78%                      | -                                 | -                                            | Yes                   | Yes                          | Yes                          |                    |
| 9     | Daman &Diu          | 100%                           | 90%                      | Implemented                       | Partial                                      | Yes                   | Yes                          | Yes                          | 51                 |
| 10    | Delhi               | 100%                           | 100%                     | Implemented                       | Implemented                                  | Yes                   | Yes                          | Yes                          | 34                 |
| 11    | Goa                 | 100%                           | 95%                      | Implemented                       | Implemented                                  | Yes                   | Yes                          | Yes                          | 0                  |
| 12    | Gujarat             | 100%                           | 77%                      | Implemented                       | Implemented                                  | Yes                   | Yes                          | Yes                          | 17,000             |
| 13    | Haryana             | 100%                           | 88%                      | Implemented                       | -                                            | Yes                   | Yes                          | Yes                          | 20                 |
| 14    | Himachal Pradesh    | 100%                           | 95%                      | -                                 | Implemented                                  | Yes                   | Yes                          | Yes                          | 0                  |
| 15    | Jammu and Kashmir   | 100%                           | 62%                      | Up to TSOs                        | -                                            | Yes                   | -                            | Yes                          | 0                  |
| 16    | Jharkhand           | 100%                           | 92%                      | Implemented                       | Implemented                                  | Yes                   | Yes                          | Yes                          | 2,198              |
| 17    | Karnataka           | 100%                           | 92%                      | Implemented                       | Implemented                                  | Yes                   | -                            | Yes                          | 3,877              |
| 18    | Kerala              | 100%                           | 95%                      | -                                 | -                                            | Yes                   | Yes                          | Yes                          | 0                  |
| 19    | Lakshadweep         | 100%                           | 97%                      | -                                 | NA                                           | Yes                   | Yes                          | Yes                          | 0                  |
| 20    | Madhya Pradesh      | 100%                           | 70%                      | Implemented                       | Implemented                                  | Yes                   | Yes                          | Yes                          | 22,401             |
| 21    | Maharashtra         | 100%                           | 87%                      | Implemented                       | -                                            | Yes                   | Yes                          | Yes                          | 93                 |
| 22    | Manipur             | 100%                           | 0.37%                    | Partial                           | -                                            | Yes                   | Yes                          | Yes                          | 0                  |
| 23    | Meghalaya           | 100%                           | -                        | -                                 | -                                            | Yes                   | Yes                          | Yes                          | 0                  |
| 24    | Mizoram             | 100%                           | 0.39%                    | -                                 | -                                            | Yes                   | Yes                          | Yes                          | 0                  |
| 25    | Nagaland            | 100%                           | 0.41%                    | -                                 | -                                            | Yes                   | Yes                          | Yes                          | 0                  |
| 26    | Odisha              | 100%                           | 68%                      | Implemented                       | Implemented                                  | Yes                   | Yes                          | Yes                          | 32                 |
| 27    | Puducherry          | 100%                           | 95%                      | NA                                | NA                                           | Yes                   | Yes                          | Yes                          | DBT (Cash)         |
| 28    | Punjab              | 100%                           | 95%                      | Implemented                       | -                                            | Yes                   | Yes                          | -                            | 0                  |
| 29    | Rajasthan           | 100%                           | 100%                     | -                                 | -                                            | Yes                   | Yes                          | Yes                          | 24,647             |
| 30    | Sikkim              | 100%                           | 68%                      | Implemented                       | -                                            | Yes                   | Yes                          | Yes                          | 20                 |
| 31    | Tamil Nadu          | 100%                           | 18%                      | Implemented                       | Implemented                                  | Yes                   | Yes                          | Yes                          | 12,297             |
| 32    | Telangana           | 100%                           | 100%                     | Implemented                       | Implemented                                  | Yes                   | Yes                          | Yes                          | 1,622              |
| 33    | Tripura             | 100%                           | 91%                      | Implemented                       | Implemented                                  | Yes                   | -                            | Yes                          | 25                 |
| 34    | Uttar Pradesh       | 100%                           | 47.89%                   | Implemented                       | -                                            | Yes                   | Yes                          | Yes                          | 6                  |
| 35    | Uttarakhand         | 100%                           | 66%                      | Implemented                       | -                                            | Yes                   | Yes                          | Yes                          | 8                  |
| 36    | West Bengal         | 100%                           | 57%                      | Implemented                       | Implemented                                  | Yes                   | Yes                          | Yes                          | 0                  |
|       |                     | 100 %                          | 60.13%                   | 25*                               | 15                                           | 36                    | 32                           | 35                           | 1,25,104           |