The Hindu Business Line : Computerisation of PDS to cost Rs 520 cr

Chennai, Oct. 1 Computerisation of the public distribution system across India is being taken up at a cost of around Rs 520 crore (in the eleventh 11th Plan period) to improve on the existing ration cards.

The scheme will facilitate transparency and efficiency in implementing distribution of food grains and help in arresting the problem of bogus ration cards, according to Mr N.K. Raghupathy, Additional Secretary and Financial Advisor, Ministry of Consumer Affairs, Food and Public Distribution.

The project will be undertaken to eliminate the present manual system of making entries.

The system will have personal details of all members of the family, including their entitlement.

The entire network of PDS from Taluk to State level will be linked.

A detailed project report is under preparation through the National Institute of Smart Governance, Hyderabad.

The Ministry will seek required approvals in the next two months, he said.

The computerisation scheme is in lieu of smart card scheme, which serves as ration cards, being implemented under a pilot in Haryana and Chandigarh, he told newspersons on the sidelines of a seminar on organised by the Federation of Indian Chambers of Commerce and Industry.

Alternative subsidies

Earlier addressing the seminar, Mr Raghupathy said payment of cash subsidy (as food subsidy) in lieu of subsidised food grains in some districts on a pilot is also being planned.

The smart card project and payment of cash subsidy have been forwarded to the Ministry of Finance for approval.

India has witnessed a record wheat production in rabi marketing season 2008-09. According to the latest projects made by the Ministry of Agriculture last week, the country is poised to have a record rice production in the kharif season.

Declaration of minimum support price (MSP) and procurement of food grains at that MSP by the Food Corporation of India and State agencies are the strategies followed by the Centre to ensure that farmers get a fair price for their produce and avoid distress sale, he said.

The minimum support price for wheat has been raised 56 per cent to Rs 1,000 a quintal in 2008-09 from Rs 640 in 2005-06. Similarly, MSP for paddy has increased by 49 per cent to Rs 850 a quintal from Rs 570.

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Computerisation of PDS to cost Rs 520 cr