Press Information Bureau

Government of India

Cabinet Committee on Economic Affairs (CCEA)

04-October-2012 20:45 IST

The Cabinet Committee on Economic Affairs today gave its approval for Component-l of the Plan Scheme on 'End-to-End Computerisation of Targeted Public Distribution System (TPDS) Operations' in the 12th Five Year Plan with an outlay of Rs. 884.07 crore on a cost sharing basis. The pattern of cost sharing between Centre and States would be on 90:10 basis for the North-Eastern States, whereas for other States/UTs, cost is to be shared equally. Shares of Government of India and State Governments/UT Administrations are estimated at Rs.489.37 crore and Rs.394.70 crore respectively.

Digitisation of beneficiary database will help in weeding out bogus ration cards and better targeting of subsidies. With computerisation of the supply-chain, the movement of foodgrains upto Fair Price Shop (FPS) level, can be tracked and the problem of leakage and diversion can be addressed.

Facilities of SMSs, e-mails, toll free numbers will be used to inform the beneficiary about the availability of TPDS supplies in the FPS, which will ensure timely and transparent distribution of foodgrains to beneficiaries as per their entitlement. The transparency portal and social audit will further strengthen the functioning of FPSs and ensure accountability at various levels. Beneficiaries will also be able to register their grievances through toll free numbers and seek resolution.

This component consists of digitization of ration cards/ beneficiary and other databases, computerization of supply-chain management, setting up of transparency portal and grievance redressal mechanisms. Digitisation of beneficiary database and computerisation of supply-chain are expected to be implemented by March, 2013 and October, 2013 respectively.

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SH/SKS

End-to-end computerisation of targeted public distribution to strengthen beneficiary targeting, supply chain transparency and grievance mechanisms. Approval for end-to-end computerisation of the Targeted Public Distribution System establishes digitisation of ration cards and beneficiary databases, computerisation of supply chain management to track foodgrain movement to Fair Price Shops and curb leakage, and creation of a transparency portal plus grievance redressal channels. The scheme sets cost sharing between Centre and States/UTs with a 90:10 pattern for North Eastern States and equal sharing elsewhere, and specifies implementation timelines for database digitisation and supply chain computerisation in 2013.