Post on 21-May-2015
transcript
Plugging The Leaks
TEAM DETAILS
UTKARSH KUMAR, NAVEEN KUMAR, RUBAL PRAKASH, ABHIYUDAYA MISHRA , VIKAS RANJAN.
BIRLA INSTITUTE OF TECHNOLOGY, PATNA.
Improving reach and efficiency of the Public Distribution System
TEAM NAME : AASMAAN
Despite for the Indian Government spending Rs 85000cr,
about 230 million people strive for food in India
In fact to provide Re 1 to the poor, the GOI spends Rs 3.75 but due to corruption in PDS only Rs 0.375 reaches finally.
PROBLEMS :-
• Identification Error
Rs 4,360 cr of the subsidy goes to the non-poor in 2012-13.
• Leakage at Different Levels
57% of the PDS does not reach the intended people, due
to leakage at different levels.
• Storage
Approx Rs 380 cr & 1.7 lakhs Tonnes of food grains were wasted
In 2012-2013 due to storage problem .
• Transportation
Approx Rs 339 cr & 18.4 lakhs. Tonnes of food grains were wasted
In 2012-2013 due to transportation problem .
•Non-Transparency
Non-transparency at different levels and lack of Public Awareness.
Virtually non existence vigilance machinery at the grass root level.
• Weak & corrupt Administration –
Undue political interference, lack of adequate supervision
over PDS operation at field level and laxity which often does
not result in any punishment to culprit found at the supervisory.
Unit 2004-2005
2009-2010
Distribution of Food via PDS ration shops
Mn Tons 41.5 48.9
PDS Food Received by the population , NSS
Mn Tons 13.2 25.3
% Leakage of Food via PDS ration shops
68.2% 48.3%
Food Subsidy- Ministry of Finance
Rs. Crores
24479 59621
Food subsidy according to NSS
Rs. Crores
8474 38875
PDS corruption estimate
Rs. Crores
16005 20746
A Major Problem : Corruption
GOI
FCI Farm
FPS Block
District
State
Corruption (20,747cr)
Poor
Food subsidy for PDS Rs.85,000 cr
(2012-13)
73% Money spent in public transfer.
Rs.62,050 cr
27% expected to reach the poor.
Rs.22,950 cr Rs.20,747 cr (24.4%)
Drained out due to corruption
Finally only 3.6%; Rs.2203 cr reach
the poor.
Problem The country facing the problem today is not one of shortage of food grains but of managing the surplus.
Corrupt implementing machinery and sleepy and sloppy programme where there is freedom to play with its great objectives with impunity to derive unlawful pecuniary benefits.
The Present Scenario of PDS
Complaint & Awareness
Centre
MULTI-APPLICATION SMART CARD
(MASC)
Bar-Code in Packets of Food Grain
Reform of PDS System
The whole power of controlling the PDS will be exercised by the District . This decentralises the powers to the state.
Smart cum ATM cards for all citizens, with the Thumb Impressions(of atleast 2members in a family) as their password. It would result from surveys done on a regular basis conducted by NSS and asserted by UIDs. The Smart Cards will be registered with Mobile no. and bank account of the people.
All food grains will come properly packed with a unique barcode on each of them. Each packet contains the amount of food grain which the GOI seeks to provide to each person. This ensures efficient distribution system. The packing of food supplies will be done by electronic system.
IVRS System , Toll Free No. & Internet Complaint Box to make the people aware of their rights and latest government schemes and also to Register complaints.
Brief of The Proposed Solution :-
New policy for FPS Owners
Web Portal
Building Transport Network
Advantage over existing
System
FPS owners earn Commission on the supplies they render and amount of food grains they store. Licence to the FPS are given on Storage basis.
Web Portal containing all the information about PDS, visible to all people. A separate Login Section for Monitoring Committee & concerned officers to manage information on procurement , allocation and off take at all levels of the distribution system.
Distribution of supplies is done on district level basis. Each district is responsible for procurement and deliver of food grains in its area. In case of shortage of Food Grains in a District, it collects supplies from its surrounding nearby districts having surplus.
Effective handling of complaints. Error free and correct allotment and movement of foodgrains to FPS through E-Governance.
Implementing the plan :-
*The work of Block level & FPS can also be substituted by Private Agencies .
Name, photo, Address, Bank account , UID no., Mobile no., biometrics category in which the beneficiary falls and the monthly entitlement of the beneficiary, family members.
Data stored on smart cum ATM card
Data is developed on the basis of survey, verified by bank, UID, LPG card and other cards(PAN, D.L, Credit, visa card, etc.)
Verification of data or identity
Working of card
Distribution of card
Using biometrics as a tool for authentication of identity of
beneficiaries.
Response on complete transaction
Register complaints.
• Swiping the card • Thump impression • Scanning barcode on packets • Providing sealed packets of
food grains
• Updating system • Conformation message on
registered mobile no. • Circulating updated
information to district center
• Getting information through
IVRS • Filling complain through toll
free no. • Online Complaint Box to make
the people aware of their rights and latest government schemes and also to Register complaints
MULTI-APPLICATION SMART CARD (MASC)
District head
District food & supply team
Transport team
Monitoring team
Finance team
Technical team
Block level supply team
District management system
At Centre – Manages fund, does survey and set up guidelines to the System. e.g.– set MSP(Minimum Support Price), Subsidized Price, Amount of food grain allotted to the people At State – Manages fund (optional) & does survey of the system. At District – District Level Management System
At block -- F.P.S level supply team Provides food grains by electronic Keeps a store of food grains atleast one month in advance
Organisational Structure
Collects supplies from other districts and provides it to other districts & block level.
Provides Food grains to the FPS.
Transports Food grains & keeps an account of the supplies received & dispatched
Deals with money related issues
Web portal management, IVRS and SMS updates.
Keeps a Check of proper functioning of other Teams
Transportation cost
Storage(Commission) cost
Barcoded packet cost
Computerization cost
Technical team(5×4.5lakh pa)
Finance team(6×4.6lakh pa)
Logistics cost
Technology cost
Organization cost
Tota
l ad
dit
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al F
un
din
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ed
Card Swapping Machine
INR 50lakh
Pa
Smart card cost
INR 75 lakhs
INR 50 lakhs
INR 1.4 cr
# An average of 2.65cr of additional funding will be required, per district annually.
IVRS & Toll Free No. cost
Proposed funding will be provided by the central govt. Total funding required for implementing this scheme(for whole country) will be 1714.65cr (647×2.65cr) which is 8.26% of the total estimated PDS corruption(20747cr).
Impact & Reach
Minimum Leakage
Benefits for Poor
Reduced Wastage
Easy monitoring and inspection
Food grain for every card.
Choice to collect grains from any FPS centre.
Awareness of their rights.
Toll free number for complaints.
Satisfaction, in terms of quality & quantity.
Reduced wastage/spoilage of food grains.
Availability of sufficient food at the FPS, when required.
Reduced storage burden on FCI.
FCI can buy & store more grains.
Increased Storage & Transportation infrastructure.
Transparent operation at each level.
Easy data updating.
Better identification.
Detailed information about allocation & off take of PDS, at any level.
**The GDP of India would get increased.
Ensuring no loss in weight of packets.
Proper record of each card holder through UID & Computer Database. Transaction through Bank Accounts, instead of cash.
Challenges and Risks
Concept Risks • Difficulty in handling Multi-Application Smart
Cards by illiterate people • There are still some chances of Inclusion errors • Unavailability of skilled workers at FPS. • Problem of identifying a customer, if the Card
Swapping Machine goes out of order. • Lack of interest among rural people towards
learning and use of new technologies/facilities. • Chances of change of fingerprints of labourers.
Mitigation Factors
Implementation Factors • Government do not see the viability of this
scheme.
• Advertising and Awareness Campaign • Workers will be trained with new
technology. • Universalization of PDS : Entitlement of same
PDS, i.e. equal subsidies/food grains to all, irrespective of their financial/social status (along with the proposed plan)
to completely remove the Inclusion errors.
Source of funds for universal PDS : - o Money saved from leakage. o Reducing TAX exemptions.(The Right to Food
Campaign estimates that Rs.1,56lakh crore would be required for universal PDS, which is about 1/3rd of tax exemptions given by the Central govt. in 2009-10.)
• An alternate offline mechanism, by which the
IVRS system would generate a customer’s unique code to identify the customer, using his registered mobile no.
• The proposed Biometric System would accept if the fingerprints match is more than 75%.
References
•Planning Commission. (2005). Performance Evaluation of Targeted Public Distribution System (TPDS). •Bhalla, Surjit S. (2012, Jan 7). Enhancing Corruption the NAC Way. Oxus Investments •Press Information Bureau (2012, Dec 17). Review of Food grains Procurement Policy RBI handbook of Statistics, Ministry of Finance, Budget statements, different years. •International Journal of Business Economics & Management Research. •Discussion paper (DEC 2012): National Food Security bill, Ministry of Agriculture ,Govt. of India. •Report on computerization of PDS by JUSTICE WADHWA COMMITTEE. •Report by Ministry of Rural Development on the methodology for conducting the BPL Census. •Report on National Food Security Bill by Dr. C.RANGARAJAN • RBI handbook of Statistics, Ministry of Finance, Budget statements, different years.
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