Public Distribution System To Be Linked To UID’s Central Data Repository

The government is planning to transfer food entitlements to ration-card holders through an electronic system, once the public distribution system (PDS) is linked to the unique ID, or Aadhar’s central data repository. This would enable state governments to directly tell residents—who will have to have an online account linked to Aadhar—about their entitlements, a discussion paper with the Unique ID Authority points out. Entitlement details would be updated monthly through an Aadhar-linked mobile phone. Of the 103 million rationcard holders across the country, 65.2 million are below the poverty line (BPL). Under the yet-to-be-passed Food Security Bill, BPL families are assured 25 kg-35 kg of wheat and rice at Rs 3/kg every month. The other plus, obviously, is reducing the number of fake rationcard holders. “Using Aadhar to identify PDS beneficiaries will eliminate duplicate and fake beneficiaries from the rolls, and make identification for entitlements far more effective,” says an official with knowledge of developments. As many as 37 million PDS beneficiaries are estimated to be fake. Through Aadhar, the government can ensure their ration quota is not distributed without the beneficiaries’ knowledge. The discussion paper says BPL families can use the shop-owner’s mobile phone or a few families can pool together for a cheap handset, as low as Rs 1,200. It will be a win-win situation for ration shop (or fair-price shop) owners too. The beneficiaries will have to authenticate their entitlements with the ration-shop owners using their Aadhar numbers. The confirmation of this will appear in the shopowner’s account giving government a real-time tab on foodgrain offtake. The government will reimburse the shopowners against the authentication and hence greater the number of Aadhar-based authentications, the greater is the amount of foodgrain reimbursement. Moreover, if the subsidised food was provided to the ration shop at market price, the shopowner can claim their reimbursement from the government. The government, on receiving the Aadhar-linked confirmation that the entitlement was delivered, would electronically issue a cheque to the ration-shop owner or transfer money to her bank account. How it works: In the new Aadhar-linked PDS, an online account of the beneficiary would be updated monthly with details of their entitlements including details like the amount of foodgrain they got and the prices. An SMS alert will be sent to the residents Aadhar-linked mobile number, as soon as the truck leaves the warehouse for the ration shop. The SMS may contain the time the truck left, quantity of grain it is carrying, and the latest grain prices.