SOIL Report 2011 - ACCESS Development Services

Potential and Possibilities 139welfare programmes and services. Twoprogrammes on which it will have asignificant impact are discussed below:• PDS: India’s PDS provides subsidizedfoodgrains and kerosene tothe poor through a network of about478,000 Fair Price Shops (FPSs)or Ration Shops, which caters tothe needs of about 62.5 millionfamilies. However, the delivery ofthese subsidies is far from efficientand is marred by errors of inclusion/exclusionin identification ofbeneficiaries (omission of poor,fake or duplicate ration cards, etc.),diversion and leakages of subsidiesen route to FPS, non-availabilityof subsidies due to faulty ManagementInformation System (MIS)foodgrain storage and so on. Onlyabout 42 per cent of the foodgrainsreach the targeted poor, and about36 per cent of the budgetary subsidiesget diverted to the black market(Planning Commission 2005).By enabling a real time authenticationof identity, UID/Aadhaarwill not only eliminate the fake andduplicate ration cards, but will alsoenable the tracking of subsidiesacross the numerous intermediariesin the supply chain—thus eliminatingthe diversion and leakageof the resources (see Box 6.4, for asimilar use of technology to managethe PDS supply chain, which hasbeen successfully implemented inChhattisgarh).• MGNREGA: MGNREGA is oneof the largest interventions in theIndian labour market. During2009–10, this programme spent`39,100 crore, covering 100 millionjob card holders, and 52 millionrural households across 619 districts(Rajshekhar 2011). Since itslaunch in 2006–07, the rural householdincomes have increased from`2,795 to about `3,500 in 2009–10,reducing distress migration (in fact,promoting reverse migration) inmany parts of the country (Ranjan2010).In spite of such positive fallouts,studies and evaluations indicatethat MGNREGA too is beset withcorruption and diversion of fundsthrough fake and multiple job cards,irregular maintenance of musterroll, misreporting of job completedand so on (Business Standard 2010).Box 6.4: Computerization of PDS in ChhattisgarhIn 2007, the Chhattisgarh governmentimplemented an end-to-end technologysolution—from procurement of produce, tostorage and transportation to state warehousesand FPSs—to manage the long and leakysupply chain of the PDS.This involved an online registrationsystem for millers of PDS rice, as well asprocurement and movement orders that areissued electronically. The government carriedout allocations to FPS shops using the rationcards database. The online platform providesan account of commodity stocks whichhelped in efficient inventory management,reducing the transmission time for allocationsfrom three weeks to two hours. Continuousmonitoring of sales and stock levels at FPSoutlets also ensured in-time stocking of theshops, so that outlets could meet the demandfrom beneficiaries at all times.A unique feature of PDS in Chhattisgarh isthe innovative citizen interface portal throughwhich citizens can track the movement of PDScommodities and also register their grievances.In a 2009 survey, 92 per cent of respondentsin Chhattisgarh reported receiving their fullrations without problems.Source: Computerization of Paddy Procurementunder PDS in Chhattisgarh. http://indiagovernance.gov.in/bestpractices.php?id=663