Note on End-To-End Computerisation of Tpds Operations

NOTE ON END-TO-END COMPUTERISATION OF TPDS OPERATIONS

As part of efforts being made to improve the distribution of foodgrains across the country, the Department of Food and Public Distribution, in association with all States & UTs, is implementing a Plan Scheme on End-to-end Computerisation of Targeted Public Distribution System (TPDS) Operations on cost sharing basis. The costs are being shared on 90:10 basis in respect of North Eastern States and on 50:50 basis with other States/UTs.

2. Following are the key activities and their expected outcomes under Component-I of the scheme:

i. Digitization of Beneficiary Database– Enable correct identification of beneficiaries; removal of bogus cards and better targeting of food subsidies

ii. Online Allocation of foodgrains– System generated allocation of foodgrains to bring transparency in allocation of foodgrains, up to the Fair Price Shops level.

iii. Computerisation of Supply Chain Management– Timely availability of foodgrains to intended beneficiaries at FPS; check leakages/diversion

iv. Grievance Redressal Mechanism and Transparency Portals– Introduce transparency & public accountability in the implementation of TPDS through transparency portals, online grievance registration and toll free helpline numbers.

3. The Scheme was approved by the CCEA in October 2012. The Department conveyed administrative approval for the scheme to all States/UTs on 10.12.2012. The Scheme has been declared as a Mission Mode Project (MMP) by the Government. National Informatics Centre (NIC) is the Technical Partner under the scheme. Total project cost approved by CCEA is Rs. 884.07 Crore, which includes Government of India’s share of Rs. 489.37 Crore and States/UTs share of Rs. 394.70 Crore. So far, financial assistance of Rs. 377.37 Crore has been released to 30 States/UTs, NIC, etc. During financial years 2012-13 (Rs.41.69 crore), 2013-14 (Rs.187.05 crore), 2014-15 (Rs. 34.35 crore), 2015-16 (Rs. 59.85 crore) 2016-17 (Rs. 53.64 Crore) and 2017-18 (Rs. 0.79 lakh). Details are at Annex-I . As regards remaining 5 States/UTs, Gujarat and Karnataka didn’t seek central financial assistance for Component-I of the scheme. State Govt. Haryana and UT of Chandigarh were provided funds under the pilot scheme which have been subsumed in the Plan Scheme. Recently, UT of Andaman & Nicobar Islands has requested for central financial assistance. Further funds would be provided to States/UTs only after they exhaust the funds already released to them and they furnish Utilization Certificate of the same.

4. A National Transparency Portal http://pdsportal.nic.inhas been developed by NIC through which citizens may access the Portals of the respective State/UT Food and Civil Supplies Departments.Based on the reports received from States/UTs and NIC, the activity- wise progress in States/UTs as on 13.06.2017. Activity-wise progress is summarized as below and State/UT wise details are at Annex-II : i. Digitization of ration cards under NFSA has been completed in all States/UTs.

ii. Ration card details are available on transparency portal of all States/UTs.

iii. Online Allocation has been implemented in 30 States/UTs.

iv. Supply-chain has been computerised in 20 States/UTs.

v. Transparency portal are implemented in allStates/UTs.

vi. Grievance redressal facilities (Online Grievance Registration System / Toll-free helpline numbers (1967/1800-series) are available in all States/UTs

5. Further, to identify and weed-out duplicate/ineligible beneficiaries, and to enable rightful targeting of food subsidies, all States/UTs have been requested to seed Aadhaar numbers in Ration Card database. At present overall seeding stands at 77.89% at the National level. Also, in pursuance of the provisions in the Section-7 of the Aadhaar Act 2016 this Department has notified the use of Aadhaar to receive subsidised foodgrains or Cash transfer of food subsidy under NFSA, on 8th February 2017.

6. As an outcome of digitization of RC/beneficiary records, de-duplication due to Aadhaar seeding, transfer / migration / deaths, change in economic status of beneficiaries, and during the run- up to and implementation of NFSA, a total of 2.48 Crore ration cards have been deleted/cancelled in 29 States/UTs. Based on this the Government has been able to achieve an estimated ‘Rightful Targeting of Food Subsidies’ of about Rs. 15,300 Crore per annum.

7. In consultation with NIC (Technical Partner for the scheme), and Unique Identification Authority of India (UIDAI) this Department has prepared guidelines for the automation of Fair Price Shops (i.e. component-II of the scheme) which have been shared with all States/UTs. The FPS automation involves installation of electronic Point of Sale (ePoS) devices at FPSs for – authentication of beneficiaries, recording of sales to beneficiaries, and uploading of transaction data in a central server. As per the said guidelines, NIC is entrusted to develop software for ePoS device and overall solution and this Department has signed a Memorandum of Understanding (MoU) with STQC Directorate for testing of PoS/Mobile terminal device. As regards financial assistance, Government has approved an FPS dealers’ margins @ Rs. 87/quintalto State/UT Governments under NFSA, which also includes reimbursement of Rs. 17/quintal for their expenditure towards purchase and operations of ePoS devices at their FPSs. Such expenditure would be shared between Centre and State/UT Governments on 75:25 basis for Special Category States/UTs and on 50:50 basis for General Category States/UTs. So far, more than 2,19,537 FPSs are automated across the country. As a result, State/UT Governments are able to reduce ghost lifting, and are able to achieve rightful targeting of food subsidies by authentication of eligible beneficiaries, improvement in service delivery, weeding out bad FPSs, etc.

8. In pursuance of enabling provisions under Section-12 of NFSA, Department has started DBT (Cash Transfers) for foodgrains to check leakages and diversions of foodgrains, and is pursuing with States/UTs to opt for DBT (Cash Transfers). Under this, the subsidy component is credited directly in to the bank accounts of eligible beneficiaries who are free to buy foodgrains from anywhere in the market to ensure their foodgrains entitlement. In this regard, the Department has notified ‘Cash Transfer of Food Subsidy Rule, 2015’ in August 2015. For taking up this model, pre-requisites for the States/UTs are – (1) complete digitization of beneficiary data seeded with Aadhaar numbers and bank account details of beneficiaries, (2) adequate availability of foodgrains in the open market, and (3) availability of banking facilities near to beneficiaries.

9. The DBT (Cash Transfers) scheme has been implemented in UTs of Chandigarh and Puducherry on w.e.f. 1st September, 2015; and in Dadra & Nagar Haveli (in few urban areas)w.e.f. 1st March, 2016. Presently, about 2.73 lakh, 5.89 lakh, and 0.41 Lakh beneficiaries are covered under DBT (cash transfer) scheme inthe three UTs of Chandigarh, Puducherry, and Dadra & Nagar Haveli respectively.

10. To promote the use of less-cash/digital payment mechanisms for day-to-day financial transactions, this Department in collaboration with all States/UTshas also started the implementation of these digital payment mechanisms in the PDS.At present the digital/cashless transaction facilities have been enabled by 8 States/UTs in their FPSs, using one or more payment modes. So far, as per reports available from States/UTs, a total of 50,117 FPSs have been equipped with digital payment facilities (mostly AePS) in 10 States/UTs. Annex-I

Release of funds under Component-I of the Scheme on End-to-end Computerisation of TPDS Operations during the Financial Years 2012-13, 2013-14, 2014-15, 2015-16, 2016-17 and 2017-18.

(as on 20.06.2017) (Rs. in crore) A S. State/UT Funds released No. 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 Total 1. Andhra Pradesh - 19.42 1.19 6.00 - 26.61 2. Arunachal Pradesh 2.00 5.11 - 7.11 3. Assam - 9.87 9.86 - 11.61 31.34 4. Bihar - 17.89 - - 17.89 5. Chhattisgarh - 3.35 - 2.39 5.74 6. Goa - 1.87 0.94 - 2.81 7. Himachal Pradesh - 4.24 - 2.12 6.36 8. Jammu & Kashmir - 6.11 - - 6.11 9. Kerala - 7.30 - 3.65 10.95 10. Jharkhand - 9.47 - - 9.47 11. Lakshadweep* - 0.70* 0.70* - - 1.40* 12. Madhya Pradesh 5.43 11.91 8.67 - 26.01 13. Maharashtra - 20.92 - 10.46 31.38 14. Manipur 2.60 1.64 - - 4.24 15. Meghalaya - 5.51 - - 5.51 16. Mizoram 4.91 - - 2.46 7.37 17. Nagaland 3.39 2.14 - - 5.53 18. Odisha 11.08 - 5.54 - 16.62 19. Punjab 7.79 - - - 7.79 20 Puducherry - - 1.40 - - 1.40 21. Rajasthan 13.89 - 6.94 20.83 22. Tamil Nadu - 11.83 - 5.91 17.74 23 Telengana - - - 4.29 - 4.29 24. Tripura - 5.85 2.92 0.25 9.02 25. Uttar Pradesh - 28.33 2.66 14.53 3.31 48.83 26. Uttarakhand 5.24 - - - 5.24 27. West Bengal - 15.17 7.58 - 22.75 28. Daman & Diu 0.74 - 0.74 29 Dadar & Nagar Haveli 0.76 - 0.76 30. NCT of Delhi 0.12 - 0.12 31 Sikkim 1.15 1.15 Total 40.44 183.52 31.70 57.20 50.25 363.11

B S. NIC(H.Q) 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 Total No. 1. NIC 0.54 2.90 2.11 2.01 2.64 0.65 10.85 2 ITDC 0.03 0.03 3. CPWD - - 0.04 0.06 - 0.10 Total 0.54 2.90 2.15 2.07 2.67 0.65 10.98

C S. NICSI (for CPMU 2012-13 2013-14 2014-15 2015-16 2016.17 2017-18 Total No. services) and Consultants 1 NICSI 0.71 0.60 0.41 0.42 0.44 0.14 2.72 2. Consultant etc. - 0.03 0.09 0.16 0.28 0.56 Total 0.71 0.63 0.50 0.58 0.72 0.14 3.28 Grand Total (A+B+C) 41.69 187.05 34.35 59.85 53.64 0.79 377.37 * The funds released in 2013-14 could not be utilized by Lakshadweep Admin. On the request of UT Admin., fresh sanction was issued in 2014-15. Annex-II

Status of End-to-End Computerization of TPDS Operations

(as on 20.06.2017 )

Digitization Aadhaar Online Computerization Online Toll Free Transparency Operational Sl. States/UTs of Ration Seeding in Allocation of of Supply-chain Grievance Helpline Portal ePoS Cards RCs Foodgrains Management Redressal Numbers

Andhra Pradesh 100 100% Implemented Implemented Yes 28,615 1 Yes Yes Chandigarh 100 100% NA NA Yes DBT (Cash) 2 Yes Yes Chhattisgarh 100 98% Implemented Implemented Yes 12,176 3 Yes Yes

Dadra & Nagar Haveli 100 9 % Implemented Implemented Yes 62 4 6 Yes Yes

Daman & Diu 100 100% Implemented Implemented Yes 51 5 Yes Yes Gujarat 100 93% Implemented Implemented Yes 17,219 6 Yes Yes Puducherry 100 100% NA NA Yes DBT(Cash) 7 Yes Yes Jharkhand 100 97% Implemented Implemented Yes 23,052 8 Yes Yes Karnataka 100 99% Implemented Implemented Yes 3,877 9 Yes Yes Madhya Pradesh 100 91% Implemented Implemented Yes 22,401 10 Yes Yes Rajasthan 100 95% Implemented - Yes 25,617 11 Yes Yes Tamil Nadu 100 100% Implemented Implemented Yes 34,773 12 Yes Yes Telangana 100 100% Implemented Implemented Yes 2,359 13 Yes Yes Andaman & Nicobar 100 100% Implemented Implemented Yes 373 14 Yes Yes Delhi 100 100% Implemented Implemented Yes 17 15 Yes Yes Goa 100 90% Implemented Implemented Yes 42 16 Yes Yes Haryana 100 91% Implemented Implemented Yes 9,505 17 Yes Yes Himachal Pradesh 100 96% Implemented Implemented Yes 4,176 18 Yes Yes

Maharashtra 100 87% Implemented Implemented Yes 19 Yes Yes 28,000

Odisha 100 87% Implemented Implemented Yes 20 Yes Yes 8,931

Punjab 100 97% Implemented - Yes 0 21 Yes Yes Sikkim 100 81% Implemented - Yes 20 22 Yes Yes Tripura 100 97.52% Implemented Implemented - 25 23 Yes Yes Uttar Pradesh 100 77% Implemented - Yes 1,510 24 Yes Yes Arunachal Pradesh 100 44.50% - - - 0 25 Yes Yes Assam 100 0 Implemented - Yes 0 26 Yes Yes Bihar 100 58.47% Implemented Implemented Yes 59 27 Yes Yes Jammu and Kashmir 100 30% Upto TSO - - 0 28 Yes Yes Kerala 100 98% Implemented - Yes 0 29 Yes Yes Lakshadweep 100 98% - NA Yes 0 30 Yes Yes Manipur 100 19.66% Partial - Yes 0 31 Yes Yes Meghalaya 100 0% - - Yes 0 32 Yes Yes

Mizoram 100 % Implemented - Yes 0 33 39.49 Yes Yes

Nagaland 100 6.50% - - Yes 0 34 Yes Yes Uttarakhand 100 90% Implemented - Yes 8 35 Yes Yes West Bengal& 100 62% Implemented Implemented Yes 0 36 Yes Yes

Total 100% 77.90% 30 20 36 33 36 2,22868