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The Finance Ministry has asked the Nandan Nilekani-headed panel on direct transfer of subsidies to suggest measures to transform the public distribution system (PDS), which is currently weighed down by leakages.
“It has been decided to extend the terms of reference of the task force to the reforms of PDS”, the Finance Ministry said in a statement here on Wednesday.
direct transfer of subsidies
The Nandan Nilekani-headed panel was constituted to recommend an implementable solution for direct transfer of subsidies on kerosene, LPG and fertiliser to the intended beneficiaries.
Interim report
The task force had submitted an interim report on July 5 to the Union Finance Minister, Mr Pranab Mukherjee.
As part of its expanded terms of reference on reforming the PDS, the panel has now been asked to identify and suggest required changes in the existing systems, processes and procedures, IT frameworks and supply chain management.
institutional mechanisms
The panel would also be required to recommend institutional mechanisms to implement the IT strategy for PDS and also examine and suggest an implementable solution for direct transfer of subsidies on food and kerosene to intended beneficiaries with the use of Aadhar number, aadhar-enabled transactions and aadhar authentication infrastructure.
The task force will submit its report on an IT strategy for PDS and an implementable solution for direct transfer of subsidies on food and kerosene by August 31, 2011.
The task force may consult the State Governments and other stakeholders in this regard, the Finance Ministry has said.
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