Question : Losses due to Corruption in PDS

(a) whether the Government has conducted any evaluation study to check losses due to corruption and leakages in Public Distribution System (PDS) during each of the last three years and the current year;
(b) if so, the details and outcome thereof and if not, the reasons therefor;
(c) the number of cases of corruption and leakages in PDS that have come to the notice of the Government across the country during the said period along with the action taken thereon so far, State/UTwise;
(d) whether the Government proposes to review the functioning of the PDS to address the issue of corruption/ leakages and other shortcomings;
(e) if so, the details thereof and if not, the manner in which corruption/leakages and other shortcomings are likely to be addressed for effective implementation of the PDS in the country; and
(f) the other steps taken/being taken by the Government in this regard?

Answer given by the minister

MINISTER OF STATE FOR CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION
(SHRI C. R. CHAUDHARY)
(a)&(b) An evaluation study on the functioning of TPDS/NFSA in six selected States i.e Assam, Bihar, Chhattisgarh, Karnataka, Uttar Pradesh and West Bengal was conducted by National Council of Applied Economic Research (NCAER) in 2014-15. The study revealed certain shortcomings/ deficiencies in the functioning of TPDS/NFSA such as inclusion/exclusion errors and leakages/ diversion of foodgrains, details of which are at Annexure -I & II. The evaluation study report submitted by NCAER was sent to the States concerned for taking necessary remedial measures.
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(c) Targeted Public Distribution System (TPDS) is operated under the joint responsibility of the Central and the State/UT Governments. Central government is responsible for procurement, allocation and transportation of foodgrains upto the designated depots of the Food Corporation of India. The operational responsibilities for allocation and distribution of foodgrains within the States/UTs, identification of eligible beneficiaries, issuance of ration cards to them and supervision over and monitoring of functioning of Fair Price Shops (FPSs) etc. rest with the concerned State /UT Governments. They are also competent to take action against those indulging in malpractices in TPDS by invoking provisions of relevant clauses of TPDS Control Order, 2015. Accordingly, complaints received in this department are forwarded to concerned State/UT for taking appropriate action. The number of complaints, received in the department during the last three years and current year, with respect to different State/UT Governments, is at Annexure- III.
National Food Security Act, 2013 provides for State Food Commission, District Grievance Redessal Officer, Vigilance Committees at FPS, Block, District, and State levels and social audit for the review and monitoring of the functioning of PDS.
(d) to (f) For effective implementation of the Public Distribution System (PDS), Government is implementing a scheme on “End-to-end Computerization of Targeted Public Distribution System (TPDS) Operations”. The scheme comprises digitization of ration cards/beneficiary and other databases, online allocation, computerization of supply-chain management, setting up of transparency portal and grievance redressal mechanisms. Besides, Central Govt. has also asked States/UTs to opt for any of the two models of Direct Benefit Transfer – Cash transfer of food subsidy into the bank account of beneficiaries or Fair Price Shop (FPS) automation, which involves installation of Point of Sale (PoS) device at FPS, for authentication of beneficiaries and electronic capturing of transactions. The cash transfer of food subsidy is being implemented in 3 UTs namely Chandigarh, Puducherry w.e.f. 01-09-2015 and partially in Dadra & Nagar Haveli w.e.f. 01-03-2016. So far, more than 2.94 lakhs out of 5.27 lakhs, FPSs have been automated across the country.
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ANNEXURE I
ANNEXURE REFERRED TO IN REPLY TO PART (a) & (b) OF THE UNSTARRED QUESTION NO. 607 DUE FOR ANSWER ON 06.02.2018 IN THE LOK SABHA.
(Study awarded – March,2014)
(Report submitted- September, 2015)
Inclusion/Excusion errors indicated in NCAER Report:
***
Sl. No.
State
Inclusion Error (in %)
Exclusion Error (in %)
1.
Assam
28.49
70.84
2.
Bihar
18.38
30.45
3.
Chhattisgarh
22.09
1.93
4.
Karnataka
31.24
16.02
5.
Uttar Pradesh
22.16
63.12
6.
West Bengal
46.6
29.77
ANNEXURE II
ANNEXURE REFERRED TO IN REPLY TO PARTS (a) & (b) OF THE UNSTARRED QUESTION NO. 607 DUE FOR ANSWER ON 06.02.2018 IN THE LOK SABHA.
Consolidated figures of leakages/diversion of foodgrains (rice & wheat) indicated in NCAER Reports.
A. NFSA states
S. No.
State
Leakage (in%)
1.
Bihar
16.28
2.
Chhattisgarh
6.95
3.
Karnataka
17.34
B. Non- NFSA states
S.No.
State
Card category
Leakage (in %)
Overall average leakage (in %)
1.
Assam
APL
70.68
39.86
BPL
36.76
AAY
12.13
2.
Uttar Pradesh
APL
35.29
24.43
BPL
32.87
AAY
5.13
3.
West Bengal
APL
38.75
25.84
BPL
28.19
AAY
10.59
***
ANNEXURE III
ANNEXURE REFERRED TO IN REPLY TO PART (c) OF THE UNSTARRED QUESTION NO. 607 DUE FOR ANSWER ON 06.02.2018 IN THE LOK SABHA.
STATEMENT: COMPLAINTS ON TPDS RECEIVED IN THE DEPARTMENT FROM INDIVIDUALS, ORGANISATIONS & THROUGH MEDIA REPORTS ETC FROM 2015 TO 2018 (upto 31.01.2018)
S. No.
State/UT
2015
2016
2017
2018
1
Andhra Pradesh
8
5
10
2
2
Arunachal Pradesh
1
-
-
-
3
Assam
34
32
17
2
4
Bihar
106
81
169
18
5
Chhattisgarh
6
9
9
1
6
Delhi
113
91
98
7
7
Goa
-
1
2
-
8
Gujarat
8
12
9
1
9
Haryana
35
34
47
3
10
Himachal Pradesh
4
5
6
-
11
J&K
5
3
4
-
12
Jharkhand
32
29
35
7
13
Karnataka
16
22
28
1
14
Kerala
16
22
13
-
15
Madhya Pradesh
17
24
21
1
16
Maharashtra
48
62
77
3
17
Manipur
6
4
2
2
18
Meghalaya
7
9
-
-
19
Mizoram
-
-
2
-
20
Nagaland
-
2
2
-
21
Orissa
22
43
22
3
22
Punjab
10
7
5
2
23
Rajasthan
33
59
82
5
24
Sikkim
-
-
-
-
25
Tamil Nadu
22
33
31
2
26
Telangana
10
1
4
-
27
Tripura
-
1
1
-
28
Uttarakhand
24
21
22
2
29
Uttar Pradesh
197
461
445
41
30
West Bengal
32
29
49
2
31
A&N Island
-
1
-
-
32
Chandigarh
6
2
-
-
33
D& N Haveli
-
1
-
-
34
Puducherry
-
-
1
-
TOTAL
818
1106
1213
105
***

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