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Public Distribution System Automation

Executive Summary

Public Distribution System (PDS) is one of India's national programs that distribute subsidized food to the poor population of the country. Major commodities distributed under this system include rice, wheat, sugar and kerosene,

These food grains are partly procured from Food Corporation of India (FCI) which is a central body and partly contributed by the state from its own produce. It reaches the end consumers through Fair Price Shop (FPS) spread across the nation. This is the largest distribution network in the world operated with collaborative efforts of Union and State governments in India.

Challenges

Since the system is huge and operational task is mammoth, it is no hidden fact that the entire network is exploited by corrupt and anti-social elements in every link of the distribution chain.

A 2003-04 data reveals that, 14.07 million tons of subsidized grains were issued to the 16 large states for delivery to Below Poverty Line (BPL) families of which only 5.93 million tons were actually delivered and a whopping 8.14 million tons of subsidized food grain did not reach the poor. Therefore, State Governments are looking for solution to overhaul the distribution system.

The government wanted a scheme that is designed exclusively to ensure that the right beneficiary avails the desired amount of food grains and other benefits through PDS.

Solution

The scope of the solution is to computerize the entire ration distribution system and introduce new technology in order to stop pilferage in the system, so that the subsidized item reaches the needy. And, VISIONTEK POS terminals played an important role in achieving these objectives.

The process went over a year. It started with digitization of existing ration cards and issuance of digital smart cards to the families below the poverty line.

Biometric finger prints are being used for the identification of card holder and to avoid duplication of cards. The entire rationing process will be automated to capture real time transaction records

The transaction done at the ration shop shall be stored in the POS terminal and uploaded to the centralized data centre instantly using a GSM/GPRS/CDMA network. GPS instrument were fitted in the vehicles carrying food grains from government food warehouses to state warehouses and they will be tracked from the data centre till the fair price shop, so that pilferage can be stopped.

Business Benefits

Biometric record of the ration card holder (head of the family) not only helps in the identification process but the system also eliminates the possibility of duplicate fake records. Earlier, bogus card holders get used subsidized commodities leaving nothing for those who really need it. The POS system thus eliminates malpractices and reduce burden on government PDS budget.

The POS terminal based system will track each and every transaction in the state and deliver the status of every ration card and FPS stock to the higher authority. All this exercise is done in real time.

The project scope involved building a data center which was linked with various other departments. With the real-time data gathered using POS terminals, stores provide required business intelligence for budgeting and other activities. Pilferage in transit is avoided using GPS tracking on warehouse vehicles. At the Fair Price Shops (FPS) every transaction is recorded in encrypted manner through the VISIONTEK POS device which enables the higher authority for decision making. This ensures the right allotment of food grains for FPS based on the active ration card users.

Finally, the VISIONTEK POS based new Public Distribution System identifies and plugs the loopholes and the leakages in the present distribution network; and also create an environment of accountability at each level.

About the Customer

The Andhra Pradesh State Civil Supplies Corporation Limited, Government of Andhra Pradesh, India.

The state civil supplies corporation manages the extensive PDS geographical coverage both in rural and urban areas and about 57 per cent of households in Andhra Pradesh state are beneficiaries of PDS, the overwhelming majority of them buying rice. The numbers of Fair Price Shops functioning in Andhra Pradesh are around 40,555 out of which, 7,641 are in urban areas and the remaining 32, 914 are in rural areas. The geographical coverage is almost universal and there is one fair price shop for every 1965 persons in the state, as against the India's norm of one fair price shop for every 2000 population.