Cabinet approves Sarthak-PDS scheme to modernise ration distribution

The Union Cabinet approved the Sarthak-PDS scheme, allocating ₹25,530 crores to support state governments' distribution of Pradhan Mantri Garib Kalyan Anna Yojana

The Union Cabinet on Wednesday approved the Sarthak-PDS scheme, with an outlay of Rs 25,530 crores to support state governments' distribution of Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY).

 

Union Information and Broadcasting Minister Ashwini Vaishnaw said that the cabinet approved the 'Scheme for Assistance in Ration Transport and Handling-Income with Automation in PDS' (Sarthak-PDS) as an umbrella scheme that integrates two existing programmes — assistance for intra-state movement and fair price shop dealer margins under the National Food Security Act (NFSA), and the SMART-PDS scheme focused on technology reforms.

 

The scheme falls under the 16th Finance Commission award cycle and will be implemented over five years, from April 2026 to March 2031.

 

 

The Centre said the initiative builds on previous digitisation measures such as end-to-end computerisation of the Targeted Public Distribution System (TPDS), ration card digitisation, Aadhaar seeding, e-PoS-enabled fair price shops, and platforms including Mera Ration and Anna Sahayata.

 

“State government agencies were facing difficulties in bearing the costs associated with transporting food grains from large FCI (Food Corporation of India) warehouses within the state to various districts, divisions, and ultimately to the Fair Price Shops. To resolve this issue, the Government of India has decided to provide financial support to cover these costs,” Vaishnaw said.

 

He further added that the second key aspect concerns the “Fair Price Shops” under this programme.

 

“For a long time, the remuneration allocated to the dealers operating these shops had remained static. There was a pressing need to increase it, as demands were pouring in from the field from all quarters, suggesting that Fair Price Shop operators ought to receive slightly higher remuneration. A decision regarding this was also taken today.”

 

He added that the Union Cabinet also decided on the modernisation of the PDS through the effective use of technology.

 

The digital platform of Sarthak-PDS will streamline national food security operations. The revamped platform will use technologies such as artificial intelligence, machine learning, natural language processing and blockchain to improve monitoring, grievance redressal and supply-chain management. The scheme also proposes state-level command and control centres and unified databases for PDS operations.