Cabinet Approves Technology Driven SARTHAK-PDS Scheme

Cabinet Approves Technology Driven SARTHAK-PDS Scheme

Why in News?

Recently, the Union Cabinet approved the ₹25,530 crore SARTHAK-PDS scheme to modernize India’s Public Distribution System using AI, blockchain, and real-time monitoring.

What is SARTHAK-PDS Scheme?

• About: SARTHAK-PDS stands for Scheme for Assistance in Ration Transport and Handling–Income with Automation in Public Distribution System. 

• It is a new umbrella reform programme approved by the Union Cabinet on 27 May 2026 to modernize India’s Public Distribution System (PDS) through advanced digital governance.

• Objective: The scheme aims to create a citizen-centric, interoperable and technology-driven PDS architecture ensuring efficient foodgrain delivery and stronger implementation of the National Food Security Act (NFSA), 2013.

• Ministry: The programme is implemented under the Department of Food and Public Distribution, functioning under the Ministry of Consumer Affairs, Food and Public Distribution. 

• Financial Outlay: The Union Government approved a Central outlay of ₹25,530 crore for the scheme during the 16th Finance Commission cycle. 

• Implementation Period: SARTHAK-PDS will operate from April 2026 to 31 March 2031, covering a five-year period. 

• Integrated Schemes: SARTHAK-PDS merges SMART-PDS with the scheme supporting intra-state movement and FPS dealer margins under NFSA. 

• • • SMART-PDS was introduced in April 2023. This technology scheme deploys cloud-based platforms, e-PoS devices, and biometric validation to digitize food distribution. It prevents grain leakage and underpins the One Nation One Ration Card framework.
    • Assistance for Intra-State Movement & FPS Dealers’ Margin scheme was launched alongside the NFSA in 2013. This financial scheme provides central funds to cover local foodgrain transportation and handling costs. It ensures the financial viability of Fair Price Shops.

• Beneficiaries: The initiative targets nearly 81.35 crore NFSA beneficiaries, making it one of the world’s largest food security programmes. 

• It strengthens last-mile foodgrain distribution for poor and vulnerable households across all States and Union Territories. 

• Technology Features: The scheme introduces Artificial Intelligence (AI), Machine Learning (ML), Natural Language Processing (NLP) and Blockchain for real-time monitoring, beneficiary verification, analytics and transparent supply-chain management. 

• Digital Monitoring: Every foodgrain bag will receive QR-code tracking, while transport vehicles will use GPS-enabled monitoring systems. 

• State-level command and control centres and digital dashboards will improve accountability and reduce diversion of subsidized grains. 

• Key Components: The scheme contains three pillars — Nirmal, Asha and Saksham. 

• • • The NIRMAL portal serves as an AI-driven repository for beneficiary management. It scans databases to efficiently detect and eliminate fraudulent ghost ration cards.
    • Logistics optimization uses the SAKSHAM automation tool. It tracks grain vehicles via GPS and features tamper-proof, QR-coded baggage tracing.10. 
    • Citizen Grievance relies on ASHA, a natural language assistant. It operates via WhatsApp or calls, resolving citizen concerns in preferred regional languages.

• Significance: SARTHAK-PDS represents a major governance reform linking digital public infrastructure, welfare delivery and food security. 

• It strengthens transparency, minimizes corruption and supports inclusive growth through data-driven welfare administration.

• • It is designed to reduce transportation distances by 15% to 50%, which is expected to lower carbon emissions and save approximately ₹280 crore annually.

What is Public Distribution System (PDS)?

• • About: The Public Distribution System (PDS) is India’s largest food security network that distributes subsidized foodgrains and essential commodities to poor households through FPSs.
    • PDS aims to ensure food security, nutritional support and price stability for vulnerable populations by providing wheat, rice, coarse grains, sugar and kerosene at highly subsidized prices.
    • Some States/UTs also distribute additional items such as pulses, edible oils, iodized salt, spices, etc.
  • Legal Basis: The system operates mainly under the NFSA, 2013, which legally entitles nearly two-thirds of India’s population to subsidized foodgrains. 
    • The Act covers around 75% rural and 50% urban population.

• Evolution: The Public Distribution System began during World War II in 1939 as an urban rationing measure. 

• The system expanded in the 1960s to fight national food shortages. The government established the Food Corporation of India in 1965 to store and distribute essential food grains. The program evolved into a universal scheme during the 1970s. 

• The government introduced the Revamped Public Distribution System in 1992 for remote areas. It transitioned into the Targeted Public Distribution System in 1997. 

• The government launched Antyodaya Anna Yojana in 2000 for the poorest families. The National Food Security Act of 2013 made food grains a legal entitlement.

• Procurement Process: The Union Government procures wheat and rice from farmers through the Food Corporation of India (FCI) at Minimum Support Price (MSP). This protects farmers’ incomes while maintaining national buffer food stocks.
• Storage Mechanism: After procurement, grains are scientifically stored in FCI godowns and state warehouses to prevent shortages and maintain uninterrupted supply during emergencies, inflation or disasters. 
• Allocation System: The Centre allocates foodgrains to States and Union Territories based on NFSA coverage. 
  • States then transport grains to district depots and ration shops for public distribution.
  • Fair Price Shops dealers distribute subsidized grains through ration cards and digital authentication systems. India operates over 5.5 lakh Fair Price Shops.
• Working Mechanism: Beneficiaries visit ration shops, authenticate identity biometrically and receive subsidized foodgrains at fixed Central Issue Prices. 
• Beneficiary Categories: PDS mainly serves Priority Households (PHH) and Antyodaya Anna Yojana (AAY) families. 
  • PHH beneficiaries receive 5 kg grain per person monthly, while AAY families receive 35 kg per household.
• Reforms: PDS faces leakages, fake ration cards, biometric failures and server glitches. To tackle this PDS uses ePoS devices, Aadhaar authentication, QR codes and One Nation One Ration Card (ONORC) portability. 
  • About 97–98% transactions are Aadhaar authenticated through integrated digital platforms.
  • The Centre launched End-to-End Computerisation of TPDS Operations in 2012 with an approved cost of ₹884 crore to digitized supply-chain records.
  • The Integrated Management of Public Distribution System (IM-PDS) scheme created a national repository of ration cards and beneficiary data. It enabled de-duplication, advanced analytics.
  • Citizen-centric apps like Mera Ration 2.0, Anna Mitra and Anna Sahayata improved beneficiary awareness, grievance redressal.
  • The government introduced GPS tracking, online allocation systems and computerized logistics management for monitoring foodgrain transportation from FCI.
  • The TPDS Amendment Order, 2025 mandated periodic e-KYC verification of ration cards every five years, aiming to remove inactive cards.