centre OKs `25,530-crore for revamped PDS scheme

EMPOWERED | Reforms to strengthen network, improve delivery efficiency

PTI

New Delhi

The Union Cabinet on Wednesday approved the five-year extension of the SARTHAK-PDS scheme with a ₹25,530 crore outlay through March 2031, aiming to overhaul the public distribution infrastructure through technology-led reforms.

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, also cleared a revision to the norms governing central assistance to states and Union Territories for intra-state movement and handling of foodgrains, as well as fair price shop (FPS) dealers' margins, while retaining the existing funding pattern. 

The SARTHAK-PDS scheme merges two existing programmes — assistance for intra-state foodgrain movement and FPS dealer margins under the National Food Security Act (NFSA), and the SMART-PDS modernisation scheme — into a unified framework aimed at strengthening last-mile delivery and curbing leakages. Information and Broadcasting Minister Ashwini Vaishnaw said the scheme covers the entire public distribution system (PDS) value chain. "Right from selection of beneficiaries to movement of foodgrains, to getting proactive feedback from citizens, to reducing transportation distance — all those activities have been approved," Vaishnaw told reporters after the Cabinet meeting. 

State governments were facing difficulties in bearing the transportation cost of foodgrain to PDS shops. This cost will be supported under the scheme wherein FPS dealers' remuneration will also be enhanced, Vaishnaw added. 

The scheme deploys three AI-powered digital platforms. NIRMAL, an AI-driven beneficiary registry, will weed out duplicate and ghost beneficiaries, while QR-coded grain bags will enable tamper-proof tracking from warehouses to FPS outlets. ASHA, a multilingual AI assistant, will handle grievance redressal in beneficiaries' preferred languages. SAKSHAM, an AI supply-chain platform, will provide vehicle GPS tracking, demand forecasting and route optimisation. 

The government projects logistics cost reductions of 15% to 50% from the scheme. 

Vaishnaw was categorical that the SARTHAK-PDS scheme does not replace the existing PDS architecture but is designed to bring structural reform across the delivery of foodgrains, logistics, transportation, material handling and grievance redressal.  

The scheme carries a dual mandate: providing assured financial support for intra-state movement, handling and FPS dealers' margins on one hand, and building a unified, citizen-centric and interoperable PDS architecture on the other — aimed at ensuring last-mile service delivery.