Lok Sabha Question No. 2569 (UNSTARRED), answered on 2016-08-02
Subject: Public Distribution System
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: SAUGATA ROY

## GOVERNMENT OF INDIA

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

LOK SABHA UNSTARRED QUESTION NO. 2569 2 ND  AUGUST, 2016

## PUBLIC DISTRIBUTION SYSTEM

2569. PROF. SAUGATA ROY:

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 Public Distribution System (PDS) in its original form has failed  to  serve  the  Below  Poverty  Line  (BPL)  population  due  to  its  urban bias,  negligible  coverage in the States with the highest concentration of the rural poor and lack of transparent and accountable arrangements for delivery;
- (b) if so, the details thereof and the response of the Government thereto; and
- (c) the steps taken by the Government to streamline the system and to fix  accountability  and  responsibility  to  ensure  that  each  poor  family  get their full entitlement under the scheme?

## MINISTER OF STATE FOR  CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION

## A N S W E R (SHRI C. R. CHAUDHARY)

- (a)  &  (b).      Government  of  India  has  enacted  the  National  Food  Security Act,  2013  (NFSA)  on  10.09.2013,  which  has  come  into  force  with  effect from 05.07.2013 for receiving subsidized foodgrains under TPDS upto 75% of  the  rural  population  and  upto  50  %  of  the  urban  population  of  the country.  Under  NFSA,  the  coverage  under  TPDS  has  been  delinked  from poverty  estimates  and  the  eligible  households  covered  under  the  Act comprises  of  Antyodaya  Anna  Yojana  (AAY)  households  and  Priority households.  As  per  the  above  coverage  and  based  on  2011  census population, the number of persons eligible for subsidized foodgrains under TPDS in the country is estimated at about 81.35 crore.

(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.

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. As part of beneficiary data digitization, States/UTs have been requested to seed the Aadhaar numbers wherever available so as to weed  out the ineligible/bogus/duplicate beneficiaries. 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. In addition, States/UTs can implement cash transfer scheme in their States/UTs. Under the scheme, the subsidy will be credited in  the  bank  accounts  of  beneficiaries  who  may  buy  foodgrains  from anywhere in the market.

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