THE Union Cabinet on Wednesday approved the continuation of the ‘SARTHAK-PDS’ scheme for five years with a financial outlay of Rs 25,530 crore till March 2031, marking a significant step towards overhauling the country’s public distribution infrastructure through technology-led reforms. The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, also cleared a revision in norms governing Central assistance to states and union territories for intra-state movement and handling of foodgrains, along with fair price shop (FPS) dealers’ margins, while retaining the existing funding pattern. SARTHAK-PDS has been conceived as an umbrella scheme, consolidating two existing programmes - “Assistance to State Agencies for Intra-State Movement of Foodgrains and FPS Dealers’ Margin under NFSA” and the “Scheme for Modernization and Reforms through Technology in Public Distribution System (SMART PDS).” The merger is aimed at comprehensively strengthening implementation of the National Food Security Act, 2013 (NFSA), by bringing financial assistance and technology modernisation under a single administrative framework.

 

Information and Broadcasting Minister Ashwini Vaishnaw, briefing reporters after the Cabinet decisions, said the approval covers the entire 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 with an outlay of Rs 25,530 crore for five years,” he said. The state governments were facing difficulties in bearing the cost of transportation of foodgrain to the PDS shops. This cost will be supported under the scheme wherein FPS dealers’ remuneration will also be enhanced, he added. Vaishnaw was categorical that SARTHAK-PDS does not replace the existing PDS architecture but is designed to bring structural reform across 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 while minimising leakages.

 

On the technology front, the scheme envisages deployment of Artificial Intelligence (AI), Machine Learning (ML), Natural Language Processing (NLP) and Blockchain to modernise PDS operations. Key deliverables include standardised architectures and unified databases for real-time monitoring, AI-driven grievance redressal and analytics systems, and State Command Control Centres for data-driven oversight. ISO-certified process frameworks will also be put in place to ensure transparency, security and operational sustainability. The scheme is anchored to the government’s legal and social commitment under NFSA, with coverage extending to 81.35 crore persons. “The government has a commitment to the people of the nation - a dignified life by ensuring access to food and nutritional security through the availability of adequate quantities of quality foodgrains,” the government said in a statement. SARTHAK-PDS draws on over a decade of technology reforms in the PDS ecosystem.

 

Earlier initiatives include end-to-end computerisation of the Targeted Public Distribution System (TPDS), Integrated Management of PDS (IM-PDS) and SMART PDS, as well as citizen-facing applications such as Mera Ration, Anna Mitra, the Rightful Targeting Dashboard and Anna Sahayata. Since April 1, 2023, the SMART PDS scheme has served as the cornerstone of technology-led reforms, enabling complete digitisation of ration cards, Aadhaar seeding, FPS automation through electronic Point of Sale (e-PoS) devices, online allocation and computerised supply-chain management across all 36 states and union territories.