The Union Cabinet has approved the SARTHAK-PDS scheme with a Rs. 25,530 crore outlay to strengthen food grain delivery and modernize the public distribution system.
New Delhi, May 27: The Union Cabinet has approved the continuation and integration of two key food distribution schemes under a new umbrella programme titled “Scheme for Assistance in Ration Transport and Handling-Income with Automation in PDS” (SARTHAK-PDS), with a central outlay of Rs. 25,530 crore for the next five years.
The decision was taken by the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi. The scheme will continue during the 16th Finance Commission cycle and remain operational till March 31, 2031.
According to an official statement issued on Tuesday, SARTHAK-PDS combines two existing schemes — assistance to state agencies for intra-state movement of food grains and fair price shop (FPS) dealers’ margin under the National Food Security Act (NFSA), and the SMART Public Distribution System (SMART PDS) scheme.
The Centre said the integrated scheme aims to strengthen the implementation of the NFSA by ensuring financial support for transportation and handling of food grains while also modernising the public distribution system through technology-driven reforms.
Under the revised framework, the Centre will continue financial assistance to states and Union Territories for expenses related to intra-state movement and handling of food grains as well as commissions paid to FPS dealers. The government said this would help ensure smoother last-mile delivery of food grains to beneficiaries across the country.
The scheme is expected to benefit around 81.35 crore people covered under the NFSA. Officials said the initiative seeks to create a more citizen-centric and interoperable public distribution system while reducing leakages and improving transparency.
The government also plans to use advanced technologies such as Artificial Intelligence (AI), Machine Learning (ML), Natural Language Processing (NLP), and Blockchain to improve monitoring and management of the PDS network. The proposed reforms include unified databases, real-time monitoring systems, AI-based grievance redressal tools, state-level command and control centres, and standardized process frameworks.
The Centre said the move builds on earlier digitisation initiatives undertaken over the past decade, including End-to-End Computerisation of the Targeted Public Distribution System (TPDS), Integrated Management of PDS (IM-PDS), and SMART PDS.
Since April 2023, the SMART PDS programme has focused on technology-led reforms such as complete digitisation of ration cards, Aadhaar seeding, automation of fair price shops through electronic point-of-sale devices, online allocation systems, and computerised supply-chain management across all states and Union Territories.
Officials said the integrated SARTHAK-PDS scheme is intended to improve efficiency, accountability and sustainability in the country’s food security network while supporting the government’s commitment to providing food and nutritional security to eligible beneficiaries.
