New Delhi, May 27: The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved the continuation of the ‘Sarthak’ Public Distribution System (PDS) scheme for the next five years. This initiative aims to automate ration transport and handling income, with a budget allocation of ₹25,530 crore from the central government.
According to an official statement, the CCEA has also decided to revise the criteria for central assistance to cover expenses related to the movement and handling of food grains within states and to support the margins of Fair Price Shop (FPS) dealers.
The statement noted that this scheme is designed as an ‘umbrella scheme’ during the allocation period of the 16th Finance Commission. It integrates support for inter-state movement of food grains and FPS dealer margins under the National Food Security Act (NFSA), while also modernizing and reforming the PDS through technology. This aims to strengthen the implementation of the NFSA, enacted in 2013.
The Sarthak PDS scheme is intended to provide assured financial support for inter-state movement, handling, and FPS dealer margins. It aims to establish an integrated, citizen-centric, intelligent, and interoperable PDS structure that ensures last-mile delivery, reduces leakage, and reinforces the nation’s commitment to food security under the NFSA. This integrated scheme will operate until March 31, 2031.
The initiative seeks to modernize PDS operations through advanced technologies such as artificial intelligence (AI), machine learning (ML), natural language processing (NLP), and blockchain.
To facilitate immediate monitoring, standardized structures and an integrated database have been developed, along with an AI-driven complaint and analysis system. State command control centers will enable data-driven inspections, ensuring transparency, security, and stability in PDS operations through ISO-certified processing structures.
Providing a sufficient quantity of quality food grains is a social and legal commitment of the Indian government to ensure food and nutrition security for its citizens, allowing them to lead a dignified life. This scheme will help fulfill the government’s commitment to the 81.35 crore individuals covered under the National Food Security Assistance (NFS).
Based on statutory and policy frameworks, the Sarthak PDS scheme streamlines the financial assistance component while integrating it into a modern, technology-based PDS system.
Over the past decade, the central government has implemented several digitization initiatives, including the complete computerization of the Targeted Public Distribution System (TPDS), Integrated Management of PDS (IM-PDS), and Smart PDS. Citizen-centric initiatives like Mera Ration, Ann Mitra, Rightful Targeting Dashboard, and Ann Sahayata have also been launched.
Since April 1, 2023, the Smart PDS scheme has laid the foundation for technology-based reforms by enabling full digitization of ration cards, Aadhaar seeding, automation of FPS through e-POS, online allocation, and computerized supply chain management across 36 states and union territories.
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