Montek panel may advocate unique ID numbers for PDS

Unique identification numbers, being distributed to citizens, may well enable the government to plug slippages in the public distribution system (PDS) and target the subsidised food items to intended beneficiaries.

The working group on food and public distribution constituted under the chairmanship of Planning Commission Deputy Chairman Montek Singh Ahluwalia is likely to recommend using the numbers effectively for streamlining PDS.

Officials in the food ministry, with which the group coordinated to prepare its report, said cash subsidy for below poverty line people at a later stage could also be part of the group’s recommendations.

The government has already appointed a task force under Nandan Nilekani to look into direct cash subsidy to the poor for fertilisers, LPG and kerosene. The system is expected to be in place by March 2012, Finance Minister Pranab Mukherjee had said in his Budget speech.

The working groups — one each on agriculture, food and public distribution and consumer affairs — were constituted by Prime Minister Manmohan Singh in April 2010 after a meeting with state chief ministers on rising food prices.

The group on agriculture is chaired by Haryana Chief Minister Bhupinder Singh Hooda, while that on consumer affairs chaired by Gujarat Chief Minister Narendra Modi. The third group is chaired by Ahluwalia.

The two groups headed by Hooda and Modi have already given their reports to the government. Officials said the group headed by Ahluwalia was expected to forcefully advocate nationwide adoption of a computerised system of tracking transportation and distribution of PDS items.

“We already have a precedent in Chhattisgarh, which has developed a unique model of tracking PDS items and can be replicated by other states as well,” a key official said. Measures to plug leakages in the PDS system could also be considered, he added.

At present, various studies show 30-40 per cent of the foodgrain allocated for distribution through the PDS never reaches the targeted population.

The terms of reference of the group chaired by Ahluwalia include making plans for augmenting warehouses and storage capacity, streamlining and strengthening the targeted public distribution system, etc.

It is also mandated to look into web-enabled computerisation of PDS system, including that for Food Corporation of India godowns and enhancing the storage capacity.