Montek panel for UID use to plug PDS leakages

A panel headed by Planning Commission Deputy Chairman Montek Singh Ahluwalia has advocated the use of unique identification numbers to plug loopholes in the public distribution system (PDS).

The working group on PDS reforms, which finalised its draft report today, has also suggested a nationwide computerised system for tracking transportation and distribution of PDS items.

“We have approved the draft report and will give it to the Prime Minister next week,” Ahluwalia told reporters after the meeting of the group.

The panel was constituted by Prime Minister Manmohan Singh in April 2010 following a meeting with chief ministers on rising food prices.

The report of the panel suggests several recommendations like use of information technology platform, as suggested by Unique Identification Authority of India (UIDAI) Chairman Nandan Nilekani to check leakages and diversion of foodgrains meant for PDS, he said.

The report has also advocated distributing foodgrains under PDS to each entitled individual rather than the entire family.

Prime Minister’s Economic Advisory Council (PMEAC) Chairman C Rangarajan, Food Minister K V Thomas, Delhi Chief Minister Sheila Dikshit and Chhattisgarh Chief Minister Raman Singh attended today’s meeting.

“The working group was set up by Prime Minister in 2010 to improve PDS. There was considerable discussion on how a computerised system can be put in place across the country,” Rangarajan said.

According to states, there are over 107 million BPL families, while the Centre puts the figure at about 65 million. Pointing out this gap, the group said the huge difference in numbers had resulted in lower PDS supply in some states.

“So, it is necessary to adopt the revised number of BPL families at the earliest based on the latest poverty estimate,” it noted.

It also suggested division of population in two categories as ‘priority’ and ‘general’ households besides converting foodgrain entitlement from per household to per individual, keeping in view the proposed National Food Security Act.

The food security bill, recently cleared by an empowered group of ministers, has also recommended division of the population into two categories and providing legal entitlement for grains to 75 per cent of the rural population, 46 per cent of which belongs to priority households, and 50 per cent of the urban population of which 28 per cent belongs to the priority category.

This apart, the panel has recommended that ration shops should display the list of BPL families, SMS-based information should be provided to ration card holders and Public Vigilance Committee to ensure that ration shops have enough supplies.

To address the viability of ration shops, the group has suggested steps to improve their functioning through sale of non-PDS items, encourage opening of ration shops five days a week, extending liberal credit and also the public-private participation model, the report noted.