Lok Sabha Question No. 1 (STARRED), answered on 2015-07-21
Subject: Public Distribution System
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: BOORA NARSAIAH GOUD, NAGARAJAN P.

## GOVERNMENT OF INDIA

## MINISTRY OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION DEPARTMENT OF FOOD AND PUBLIC DISTRIBUTION

LOK SABHA STARRED QUESTION NO. *1 TO BE ANSWERED ON 21 ST  JULY, 2015

## PUBLIC DISTRIBUTION SYSTEM

- *1. DR. BOORA NARSAIAH GOUD: SHRI P. NAGARAJAN:

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 losses due to corruption and leakages in Public Distribution System  (PDS)  have  been  reported  during  last  three  years  and  if  so,  the details thereof;
- (b) whether the Government has formulated any action plan to strengthen and streamline PDS so as to contain leakages and check losses due  to  theft  and  pilferage  and  if  so,  the  details  and  the  present  status thereof along with the success achieved therein, State/UT-wise;
- (c) whether the Government proposes to link PDS with Aadhaar and if so, the  details  and  the  objectives  thereof  along  with  the  benefits  likely  to accrue therefrom; and
- (d) whether  the  Government  proposes  to  universalise  PDS,  if  so,  the details thereof and the response of the States thereto?

A N S W E R MINISTER OF CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION (SHRI RAM  VILAS PASWAN)

- (a) to (d):  A Statement is laid on the Table of the House.

***

## STATEMENT REFERRED TO IN REPLY TO PARTS (a) to (d) OF THE STARRED QUESTION NO. *1  DUE FOR ANSWER ON 21.07.2015 IN THE LOK SABHA

- (a):   TPDS is operated under the joint responsibility of the Central and the State/Union Territory (UT) Governments wherein the operational responsibilities for implementation of TPDS within the State/UT rest with the State/UT Governments  concerned. There have been complaints about irregularities  including  corruption  and  leakages  in  the  functioning  of  the Targeted  Public  Distribution  System  (TPDS)  in  some  States/regions  in  the country. This Department has been getting the functioning of TPDS evaluated by  different  agencies  from  time  to  time.  No  evaluation  studies  have  been carried out in the last three years. Two evaluation studies of TPDS were got conducted  through  (i)  National  Council  of  Applied  Economic  Research (NCAER) in respect of 12 States in two phases in 2006 and 2007  (reports submitted in 2007 and 2009) and (ii) Indian Institute of Public Administration (IIPA)  in  respect  of  14  States  in  two  phases  in  2007  (reports  submitted  in 2010 and 2011). The details of leakages/ diversion of foodgrains reported in these studies are at Annex-I & II. The reports received have been sent to the States/UTs concerned for taking necessary remedial measures to remove the deficiencies noticed in the functioning of TPDS.
- (b):  Strengthening  and  streamlining  of  TPDS  is  a  continuous  endeavour.  A Nine Point Action Plan for curbing the leakages/diversion of foodgrains under TPDS was evolved in July, 2006 in consultation with the State/Union Territory (UT)  Governments.  Government  has  been  regularly  monitoring  the  action being taken by States/UTs on all essential aspects for streamlining TPDS i.e. review of lists of beneficaries, 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.  by  issuing advisories, holding conferences etc. The State/UT-wise details of the action taken under the Nine Point Action Plan as reported by the States/UTs upto 31.12.2014 are at Annex -III and IV.

In  October  2012,  Government  approved  Component-I  of  the  Plan Scheme on 'End-to-end Computerization of TPDS Operations' for its implementation on cost sharing basis during 12 th   Five  Year  Plan  (2012-17). The Scheme is a Central Sector Scheme. Component-I comprises activities, namely, digitization of ration card/beneficiary and other databases, computerization  of  supply-chain  management,  setting  up  of  transparency portals  and  grievance  redressal  mechanisms.  The  National  Food  Security Act,  2013,  notified  on  10.09.2013,  also  contains  measures  for  reforms  in TPDS, to be undertaken progressively by the Central and State/UT Governments. These reforms inter alia include door-step delivery of foodgrains at the FPS, application of information  and  communication technology tools including end to end computerisation, preference to public institutions/bodies in licensing of FPSs, etc.

(c): Under the plan scheme  on End-to-end Computerization of TPDS Operations, States/UTs are inter-alia required to digitize their ration card/beneficiaries'  database.  With  a  view  to  de-duplicate  the  beneficiaries database, States/UTs have also been requested to seed available 'Aadhaar numbers  in  digitized  database.  However,  Aadhaar  is  not  mandatory  for distribution  of  entitlements.  Seeding  of  Aadhaar  numbers  ensures  that subsidised foodgrains are distributed only to the targeted beneficiaries.

(d): There  is  no  proposal  under  consideration  in  Department  of  Food  & Public Distribution to introduce universal Public Distribution System (PDS). ********

## ANNEX -I

## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (a)  OF  THE  STARRED QUESTION NO. *1  DUE FOR ANSWER ON 21.07.2015 IN THE LOK SABHA

Consolidated figures of leakages of foodgrains (rice and wheat) indicated in IIPA (Phase- I)

Report.

(Study awarded - January,2007)

(Report submitted- October, 2010)

|   Sr. No. | State             |   Leakage as Percentage of offtake |
|-----------|-------------------|------------------------------------|
|        1. | Arunachal Pradesh |                              14.88 |
|        2. | Manipur           |                              27.00 |
|        3. | Nagaland          |                              49.49 |
|        4. | Orissa            |                               6.86 |
|        5. | Tripura           |                               3.24 |
|        6. | West Bengal       |                              26.84 |

Consolidated figures of diversion/leakages of foodgrains (rice and wheat) allocated under TPDS as indicated in IIPA (Phase-II) Report.            (Study awarded - March,2007) (Report submitted- February, 2011)

|   Sr. No. | State/UT         | Percentage of diversion/ leakage of foodgrains (Rice & Wheat) allocated under TPDS to AAY and BPL beneficiaries   |
|-----------|------------------|-------------------------------------------------------------------------------------------------------------------|
|        1. | Haryana          | 8.69                                                                                                              |
|        2. | Punjab           | Nil *                                                                                                             |
|        3. | Chandigarh       | 13.6                                                                                                              |
|        4. | Tamil Nadu       | 13.64                                                                                                             |
|        5. | Andhra Pradesh   | Nil *                                                                                                             |
|        6. | Himachal Pradesh | 5.6                                                                                                               |
|        7. | Jammu &Kashmir   | 4.1                                                                                                               |
|        8. | Karnataka        | Nil *                                                                                                             |

* Nil percentage of diversion/leakage does not take into account diversion from one category to another category of beneficiaries (AAY/BPL/APL).

## ANNEX -II ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (a)  OF  THE  STARRED

## QUESTION NO. *1  DUE FOR ANSWER ON 21.07.2015 IN THE LOK SABHA

Statement of leakages and diversion shown in NCAER Reports.

(Study awarded - January,2007) (Report submitted- January, 2009)

Figures in %age

| States         | AAY   | AAY   | BPL   | BPL   | APL   | APL   |
|----------------|-------|-------|-------|-------|-------|-------|
|                | Rice  | Wheat | Rice  | Wheat | Rice  | Wheat |
| Delhi          | 1.63  | 3.72  | 3.34  | 0.00  | 0.00  | 0.00  |
| Jharkhand      | 3.80  | 16.47 | 0.00  | 8.97  | 0.00  | 54.53 |
| Kerala         | 18.66 | 0.00  | 0.00  | 19.24 | 0.00  | 13.10 |
| Madhya Pradesh | 0.00  | 16.81 | 18.93 | 29.14 | 0.00  | 0.00  |
| Maharashtra    | 0.00  | 9.42  | 0.00  | 17.77 | 0.00  | 0.00  |
| Uttarakhand    | 0.00  | 0.00  | 0.00  | 29.71 | 0.00  | 4.92  |

(Study awarded - May, 2006) (Report submitted- November, 2007)

Figures in %age

| States        | AAY   | AAY   | BPL   | BPL   | APL   | APL    |
|---------------|-------|-------|-------|-------|-------|--------|
|               | Rice  | Wheat | Rice  | Wheat | Rice  | Wheat  |
| Rajasthan     | 0.00  | 0.00  | 0.00  | 0.00  | 0.00  | 0.00   |
| Chhatisgarh   | 0.00  | 0.00  | 0.97  | 42.32 | 0.00  | 78.34  |
| Bihar         | 0.00  | 41.35 | 0.00  | 46.87 | 0.00  | 0.00   |
| Uttar Pradesh | 0.00  | 0.86  | 8.32  | 20.67 | 0.00  | 0.00   |
| Assam         | 1.49  | 0.00  | 44.97 | 0.00  | 83.28 | 100.00 |
| Mizoram       | 36.21 | 0.00  | 37.44 | 0.00  | 81.12 | 100.00 |

## ANNEX-III

## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (b)  OF  THE  STARRED QUESTION NO. *1  DUE FOR ANSWER ON 21.07.2015 IN THE LOK SABHA

Details of the action taken by States/UTs as reported upto 30.12.2014 under the Nine Point Action Plan since July, 2006 onwards.

|   1 | States should undertake a campaign to review BPL/AAY list to eliminate ghost ration cards                                                                                 | As per reports received from the State & UT Governments by 31 st December, 2014, implementation of the action plan has resulted in elimination of a total of 494.34 lakh bogus/ ineligible ration cards in 30 States.                                                             |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   2 | Strict action should be taken against the guilty to ensure leakage free distribution of food grains                                                                       | 33 States have reported that action is being taken against the guilty to ensure leakage free distribution of food grains.                                                                                                                                                         |
|   3 | For sake of transparency, involvement of elected PRI members in distribution of food grains be ensured. FPS licenses be given to SHGs, gram panchayats, cooperatives etc. | There is involvement of PRIs in Vigilance Committees to monitor FPS in 29 States/UTs. 31 States/UTs have reported FPS being run by Gram Panchayats, SHGs, and Cooperatives etc. Out of about 5.17 lakh FPS in operation, about 1.36 lakh FPS are being run by such organisations. |
|   4 | Display of BPL and AAY lists by fair price shops                                                                                                                          | BPL lists at FPS are displayed in 32 States/UTs.                                                                                                                                                                                                                                  |
|   5 | Display of fair price shop-wise and district-wise allocations of PDS commodities on web-sites for public scrutiny                                                         | Action regarding putting up district-wise and FPS-wise allocation of food grains on websites and other prominent places has been initiated in 22 States/UTs.                                                                                                                      |
|   6 | Door-step delivery of PDS commodities to fair price shops                                                                                                                 | Door-step delivery of food grains to FPS by State Governments instead of letting private transporters to transport goods is being done in 21 States/UTs. This reduces leakages during the transportation of foodgrains and ensures viability of FPS owners.                       |
|   7 | Ensuring timely availability of foodgrains at FPS and distribution of foodgrains by FPS                                                                                   | Action is being taken by 32 States in this regard.                                                                                                                                                                                                                                |

|   8 | Training of Vigilance Committee members            | 27 State/UT Governments have taken up training programmes for FPS level Vigilance Committees. Funds are also being provided by Government of India under a Plan Scheme for training of TPDS officers/ officials.                                                          |
|-----|----------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   9 | Computerization of TPDS operations, use of IT etc. | Computerisation of TPDS has been taken up across the country. For this purpose, action plans have been finalized by all States/UTs. Government is also providing technical and financial assistance under a Plan Scheme on End-to-end Computerisation of TPDS Operations. |

***

## ANNEX-IV

## ANNEXURE REFERRED TO IN REPLY TO PART (b) OF THE STARRED QUESTION NO. DUE FOR ANSWER ON 21.07.2015 IN THE LOK SABHA

## Implementation of Nine-Point Action Plan - results thereof from July, 2006 to onwards State-wise and all India

| Sl. No.   | Name of the State/UT       | Review of BPL / AAY list   | Ensure leakage free distribution of foodgrains by taking action against   | Involvement of PRI members   | Display of BPL/AAY list on the FPS   | Distt . & FPSwise allocation of foodgrains put on website as public scrutiny   | Door step delivery of foodgrains   | Timely availability of foodgrains at FPS   | (as on Training of members of FPS level Vigilance Committee   | 31.12.2014) Steps taken towards Computeriz ation of TPDS operations   |
|-----------|----------------------------|----------------------------|---------------------------------------------------------------------------|------------------------------|--------------------------------------|--------------------------------------------------------------------------------|------------------------------------|--------------------------------------------|---------------------------------------------------------------|-----------------------------------------------------------------------|
|           |                            | 1                          | guilty 2                                                                  | 3                            | 4                                    | 5                                                                              | 6                                  | 7                                          | 8                                                             | 9                                                                     |
| 1         | Andhra                     | Yes                        | Yes                                                                       | Yes                          | Yes                                  | Yes                                                                            | Yes                                | Yes                                        | Yes                                                           | Yes                                                                   |
| 2         | Pradesh^ Arunachal Pradesh | Yes                        | Yes                                                                       | Yes                          | Yes                                  | Yes                                                                            | No*                                | -                                          | Yes                                                           | Yes                                                                   |
| 3         | Assam                      | Yes                        | Yes                                                                       | Yes                          | Yes                                  | -                                                                              | -                                  | Yes                                        | Yes                                                           | Yes                                                                   |
| 4         | Bihar                      | Yes                        | Yes                                                                       | Yes                          | Yes                                  | Yes                                                                            | Yes                                | Yes                                        | Yes                                                           | Yes                                                                   |
| 5         | Chhattisgarh               | Yes                        | Yes                                                                       | Yes                          | Yes                                  | Yes                                                                            | Yes                                | Yes                                        | Yes                                                           | Yes                                                                   |
| 6         | Delhi                      | Yes                        | Yes                                                                       | Yes                          | Yes                                  | Yes                                                                            | Yes                                | Yes                                        | Yes                                                           | Yes                                                                   |
| 7         | Goa                        | Yes                        | Yes                                                                       | -                            | Yes                                  | -                                                                              | -                                  | Yes                                        | Yes                                                           | Yes                                                                   |
| 8         | Gujarat                    | Yes                        | Yes                                                                       | Yes                          | Yes                                  | Yes                                                                            | Yes                                | Yes                                        | Yes                                                           | Yes                                                                   |
| 9         | Haryana                    | Yes                        | Yes                                                                       | Yes                          | Yes                                  | -                                                                              | Yes                                | Yes                                        | Yes                                                           | Yes                                                                   |
| 10        | Himachal Pradesh           | Yes                        | Yes                                                                       | Yes                          | Yes                                  | Yes                                                                            | No                                 | Yes                                        | Yes                                                           | Yes                                                                   |
| 11        | Jammu & Kashmir            | Yes                        | Yes                                                                       | Yes                          | Yes                                  | -                                                                              | Yes                                | Yes                                        | Yes                                                           | Yes                                                                   |
| 12        | Jharkhand                  | Yes                        | Yes                                                                       | -                            | -                                    | Yes                                                                            | Yes                                | -                                          | -                                                             | Yes                                                                   |
| 13        | Karnataka                  | Yes                        | Yes                                                                       | Yes                          | Yes                                  | Yes                                                                            | No                                 | Yes                                        | Yes                                                           | Yes                                                                   |
| 14        | Kerala                     | Yes                        | Yes                                                                       | Yes                          | Yes                                  | Yes                                                                            | Yes                                | Yes                                        | Yes                                                           | Yes                                                                   |
| 15        | Madhya Pradesh             | Yes                        | Yes                                                                       | Yes                          | Yes                                  | Yes                                                                            | Yes                                | Yes                                        | -                                                             | Yes                                                                   |
| 16        | Maharashtra                | Yes                        | Yes                                                                       | Yes                          | Yes                                  | -                                                                              | Yes                                | Yes                                        | Yes                                                           | Yes                                                                   |
| 17        | Manipur                    | -                          | -                                                                         | -                            | -                                    | -                                                                              | -                                  | -                                          | Yes                                                           | Yes                                                                   |
| 18        | Meghalaya                  | Yes                        | Yes                                                                       | -                            | Yes                                  | Yes                                                                            | -                                  | Yes                                        | Yes                                                           | Yes                                                                   |
| 19        | Mizoram                    | Yes                        | Yes                                                                       | Yes                          | Yes                                  | -                                                                              | No*                                | Yes                                        | Yes                                                           | Yes                                                                   |
| 20        | Nagaland                   | Yes                        | Yes                                                                       | Yes                          | Yes                                  | -                                                                              | No*                                | Yes                                        | -                                                             | Yes                                                                   |
| 21        | Odisha                     | Yes                        | Yes                                                                       | Yes                          | Yes                                  | Yes                                                                            | Yes                                | Yes                                        | Yes                                                           | Yes                                                                   |
| 22        | Punjab                     | Yes                        | Yes                                                                       | Yes                          | Yes                                  | Yes                                                                            | Yes                                | Yes                                        | Yes                                                           | Yes                                                                   |
| 23        | Rajasthan                  | Yes                        | Yes                                                                       | Yes                          | Yes                                  | Yes                                                                            | Yes                                | Yes                                        | Yes                                                           | Yes                                                                   |
| 24        | Sikkim                     | Yes                        | Yes                                                                       | Yes                          | Yes                                  | -                                                                              | Yes                                | Yes                                        | Yes                                                           | Yes                                                                   |
| 25        | Tamil Nadu                 | Yes                        | Yes                                                                       | Yes                          | Yes                                  | Yes                                                                            | Yes                                | Yes                                        | Yes                                                           | Yes                                                                   |
| 26        | Tripura                    | Yes                        | Yes                                                                       | Yes                          | Yes                                  | -                                                                              | Yes                                | Yes                                        | Yes                                                           | Yes                                                                   |
| 27        | Uttar Pradesh              | Yes                        | Yes                                                                       | Yes                          | Yes                                  | Yes                                                                            | Yes                                | Yes                                        | Yes                                                           | Yes                                                                   |
| 28        | Uttarakhand                | Yes                        | Yes                                                                       | Yes                          | Yes                                  | Yes                                                                            | No*                                | Yes                                        | -                                                             | Yes                                                                   |
| 29        | West Bengal                | Yes                        | Yes                                                                       | Yes                          | Yes                                  | Yes                                                                            | Yes                                | Yes                                        | Yes                                                           | Yes                                                                   |
| 30        | A&N Islands                | Yes                        | Yes                                                                       | Yes                          | -                                    | -                                                                              | Yes                                | Yes                                        | -                                                             | Yes                                                                   |
| 31        | Chandigarh                 |                            | Yes                                                                       | Yes                          | Yes                                  | -                                                                              | -                                  | Yes                                        | Yes                                                           | Yes                                                                   |
|           |                            | Yes                        |                                                                           |                              |                                      |                                                                                |                                    |                                            |                                                               |                                                                       |
| 32 33     | D&N Haveli Daman & Diu     | Yes -                      | Yes -                                                                     | Yes -                        | Yes Yes                              | Yes -                                                                          | - -                                | Yes Yes                                    | - -                                                           | Yes Yes                                                               |
|           |                            | Yes                        | Yes                                                                       | Yes                          | Yes                                  | Yes                                                                            | No*                                | Yes                                        | Yes                                                           | Yes                                                                   |
| 34 35     | Lakshadweep Puducherry     | Yes                        | Yes                                                                       | -                            | Yes                                  | Yes                                                                            | Yes                                | Yes                                        | -                                                             | Yes                                                                   |
|           | Total                      | 33                         | 33                                                                        | 29                           | 32                                   | 22                                                                             | 21                                 | 32                                         | 27                                                            | 35                                                                    |

## Legend:

Yes - Under implementation.

( - ) - No action reported.

* -     Not practical

^ including State of Telangana. Separate information in respect of States of Andhra Pradesh & Telangana is awaited.