In News:

The Union Minister of Consumer Affairs, Food and Public Distribution and New & Renewable Energy, launched ‘Anna Chakra’, the Public Distribution System (PDS) Supply chain optimisation tool and SCAN (Subsidy Claim Application for NFSA) portal a significant step towards modernizing the Public Distribution System and subsidy claim mechanisms of the States.

Anna Chakra: PDS Supply Chain Optimization Tool

• Purpose: A tool developed to enhance the efficiency of PDS logistics across India, optimizing food grain transportation.
• Collaboration: Developed by the Department of Food and Public Distribution, in collaboration with the World Food Programme (WFP) and IIT-Delhi’s Foundation for Innovation and Technology Transfer (FITT).
• Functionality: Uses advanced algorithms to identify optimal transportation routes for food grains.
• Key Features:
  • Efficiency and Cost Savings: Achieves annual savings of Rs 250 crores by reducing fuel consumption, time, and logistics costs.
  • Environmental Impact: Reduces transportation-related emissions by cutting transportation distance by 15-50%, contributing to a smaller carbon footprint.
  • Wide Coverage: Impacts 30 states, 4.37 lakh Fair Price Shops (FPS), and 6,700 warehouses in the PDS supply chain.
  • Technology Integration: Linked with the Freight Operations Information System (FOIS) of Railways and PM Gati Shakti platform, enabling geo-location mapping of FPS and warehouses.

SCAN Portal: Subsidy Claim Application for NFSA

• Objective: To streamline the subsidy claim process under the National Food Security Act (NFSA) 2013, ensuring better utilization of funds.
• Functionality: Provides a unified platform for states to submit food subsidy claims, reducing administrative complexity and delays.
• Key Features:
  • Single Window Submission: Simplifies subsidy claim submission for states, enhancing coordination.
  • Automated Workflow: End-to-end automation ensures efficiency, transparency, and faster settlements.
  • Rule-Based Processing: Claims are scrutinized and approved through a rule-based system, speeding up the approval process.

Public Distribution System (PDS) Overview

• Purpose: Ensures food security by providing subsidized food grains to vulnerable populations under the NFSA, benefitting nearly 80 crore people.
• Management: A joint effort between the Central and State/UT Governments. The Food Corporation of India (FCI) handles procurement and transportation, while state governments manage local distribution.
• Commodities: Primarily wheat, rice, sugar, and kerosene, with some states also distributing pulses and edible oils.

Initiatives to Reform PDS in India

• One Nation One Ration Card (ONORC):
  • Goal: To allow portability of ration cards, benefiting migrant workers and seasonal laborers.
  • Features: Biometric authentication, digital payments, and enhanced inclusivity.
• SMART-PDS Scheme (2023-2026):
  • Objective: To upgrade technology in PDS, including computerized FPS, point-of-sale (POS) machines, and GPS tracking for transparency and fraud reduction.
• Aadhaar and Direct Benefit Transfer (DBT):
  • Purpose: Ensures proper beneficiary identification and cash transfers, allowing beneficiaries to purchase grains from the open market.
• Technology and Transparency Enhancements:
  • GPS and SMS Monitoring: Ensures the proper delivery of food grains to FPS and provides citizens with updates via SMS.