Question : SMART CARDS FOR PDS



(a) whether the Government proposes to use Smart Card Technology in the Public Distribution System (PDS) and if so, the details and the objectives thereof;

(b) whether the Government has consulted the States in this regard;

(c) if so, the response of the States thereon; and

(d) the other steps taken by the Government for effective implementation and bringing transparency in the Public Distribution System?

Answer given by the minister



MINISTER OF STATE (INDEPENDENT CHARGE) FOR CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION (PROF. K.V. THOMAS)

(a) to (c): Government has initiated implementation of Component-I of the scheme for End-to-end Computerisation of Targeted Public Distribution System (TPDS) Operations, which comprises digitization of ration cards/beneficiary and other databases, computerization of supply-chain management, setting up of transparency portal and grievance redressal mechanisms. The use of Smart Card technology in TPDS is mainly related to Fair Price Shop (FPS) automation, which is being implemented on pilot basis in some States/UTs, namely, Chandigarh UT, Chhattisgarh, Haryana, Odisha, Puducherry UT, etc. FPS automation is expected to ensure delivery of foodgrains under TPDS to the entitled beneficiaries, check leakages/diversion, etc.

Some States/UTs like Delhi, Gujarat, Karanataka and Puducherry have informed regarding completion of the Component-I and sought financial assistance for Component-II i.e. FPS automation. The exact model of FPS automation, that is, Aadhaar based authentication through Point of Sale (PoS) devices, use of Smart Cards, etc. would be finalized by the Government in consultation with States/UTs and taken up in the next phase.

(d): Strengthening and streamlining of TPDS is a continuous process. To improve functioning of TPDS, Government has been regularly requesting States/UTs Governments for continuous review of lists of Below Poverty Line (BPL) and Antyodaya Anna Yojana (AAY) families, ensuring timely availability of foodgrains at FPSs, greater transparency in functioning of TPDS, improved monitoring and vigilance at various levels, use of Information and Communication Technology (ICT) tools, improving the viability of FPS operations, etc.