SMART-PDS Scheme

Scheme for Modernization and Reforms through Technology in Public Distribution System

Objective:

  • Launched by the Department of Food and Public Distribution in 2015 to revamp the Targeted Public Distribution System (TPDS).
  • Aims to improve efficiency, transparency, and accountability in delivering subsidized food grains to beneficiaries, estimated to be over 800 million people in India (as of 2023).

Key Features:

  • Smart Ration Cards: Issued to beneficiaries with biometric data (fingerprint) for authentication during ration offtake. As of March 2023, over 60 crore (600 million) smart ration cards have been issued nationwide.
  • Electronic Point of Sale (ePoS) Machines: Installed at Fair Price Shops (FPS) for recording transactions electronically. By March 2024, over 5 lakh (500,000) ePoS machines have been deployed across FPS outlets in India.
  • End-to-End Integration: Integrates all levels of the PDS operation – from central allocation of food grains to FPS transactions, aiming for real-time data visibility.
  • One Nation One Ration Card (ONORC): Launched in 2019, enables beneficiaries to access their ration entitlement from any FPS across the country. As of April 2024, 36 states and UTs are onboard ONORC, covering a significant portion of the population.

Benefits:

  • Reduces Leakages: Biometric authentication and ePoS machines minimize diversion of ration supplies. A 2022 government report estimates a 10-15% reduction in leakages since SMART-PDS implementation.
  • Improved Targeting: Ensures subsidized food grains reach intended beneficiaries. Pilot studies suggest better identification of eligible households.
  • Transparency and Accountability: Real-time data on transactions increases transparency. Initiatives like online grievance redressal mechanisms empower beneficiaries to report irregularities.
  • Portability: ONORC benefits migrant workers and those who relocate frequently. Over 1.5 crore (15 million) inter-state ration transactions were recorded via ONORC in 2023.
  • Efficiency: Streamlines PDS operations and reduces administrative burden. Estimates suggest a decrease in average transaction time at FPS outlets.

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