Date: 01/04/2023

Relevance: GS-3: Indian Economy and issues relating to planning, mobilization.

Key Phrases: Department of Food and Public Distribution, Women and Child Development, and UIDAI, One Nation One Ration Card, Fair Price Shop, e-Shram Portal, Ayushman Bharat, Ministry of Agriculture and Farmers’ Welfare.

Context:

• The Smart Public Distribution System (Smart PDS) scheme is an ambitious initiative launched by the Indian government to digitize and modernize the Targeted Public Distribution System (TPDS), the country's largest beneficiary-centric program.

Key Highlights:

• The Smart PDS initiative of the Department of Food and Public Distribution (DFPD) aims to implement data-driven decision-making to address the deficit of credible and dynamic data.
• The scheme leverages data generated from the distribution of food grains to identify the consumption and mobility patterns of beneficiaries.
• This data can be used to optimize the delivery of critical central welfare schemes to the most vulnerable sections of society.
• The use of data analytics and other ICT tools and technologies will also allow for the standardization of PDS operations through the use of technology and integrating the same with FCI, CWC, transport supply chain of rail and road, Ministry of Education, Women and Child Development, and UIDAI.
• Convergence and integration with the use of AI can really be a game changer for people as well as governments in bringing accountability across all programs.

Significances:

• Targeted delivery: One of the primary benefits of the SMART-PDS scheme is that it ensures the targeted delivery of essential commodities to the most vulnerable sections of society. By leveraging data from various government schemes and programs, such as the Socio-Economic Caste Census (SECC), the scheme identifies the most vulnerable households in each state and allocates resources accordingly.
• Eliminates leakages and pilferage: The SMART-PDS scheme uses advanced technology such as biometric authentication, digitized ration cards, and electronic point of sale (ePoS) devices to eliminate leakages, ensure timely delivery of food grains, and prevent pilferage in the public distribution system (PDS). This ensures that only genuine beneficiaries receive the benefits and prevents diversion or black-marketing of food grains.
• Enhances transparency: The SMART-PDS scheme promotes transparency in the distribution system by making information about the allocation of resources and the distribution of food grains available in the public domain. This makes it easier for beneficiaries to access information about their entitlements and hold authorities accountable for any discrepancies or delays in the delivery of benefits.
• Saves cost and resources: The scheme ensures that resources are allocated based on actual needs, reducing the wastage of food grains and other resources. This also helps in saving costs as the government can optimize its resources based on the actual needs of beneficiaries.
• Enhances accountability: The SMART-PDS scheme enhances accountability as it provides a platform for beneficiaries to register their grievances and complaints. The scheme also allows for monitoring and evaluation of the distribution system, making it easier for authorities to track and rectify any shortcomings in the system.

What are the challenges associated with Smart -PDS?

• Technological barriers: One of the primary challenges associated with the SMART-PDS scheme is the technological barrier. The scheme relies heavily on technology, including biometric authentication, digitized ration cards, and electronic point of sale (ePoS) devices. However, many people in rural and remote areas may not be familiar with these technologies, making it difficult for them to access their entitlements.
• Lack of awareness: Another challenge associated with the SMART-PDS scheme is the lack of awareness among beneficiaries. Many beneficiaries may not be aware of their entitlements or how to access them, which can lead to the underutilization of the scheme.
• Infrastructure challenges: The SMART-PDS scheme requires a robust infrastructure to function effectively. However, many areas in India may not have adequate infrastructure, such as internet connectivity, power supply, and storage facilities, making it difficult to implement the scheme effectively.
• Corruption and rent-seeking: Despite the advanced technology used in the SMART-PDS scheme, corruption and rent-seeking remain a significant challenge. Some officials and middlemen may still try to divert or siphon off food grains, especially in areas where there is weak governance and oversight.

Conclusion:

• The SMART-PDS scheme is a bold initiative in digitisation that has brought about a significant transformation in the delivery of critical central welfare schemes to the most vulnerable sections of society.
• The scope of the SMART PDS scheme is clearly beyond just ration distribution and will allow for greater accountability across all government schemes.

Source: The Indian Express

Mains Question:

Q. Discuss the significance of the SMART-PDS scheme for the delivery of critical central welfare schemes to the most vulnerable sections of society. (250 Words).