Cabinet Approves Rs 25,530 Crore SARTHAK-PDS Scheme To Modernise Public Distribution System
The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on Wednesday 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).
The Centre will spend ₹25,530 crore over the next five years as its share for the implementation of the scheme during the 16th Finance Commission cycle, with the programme set to continue until March 31, 2031.
The SARTHAK-PDS scheme integrates two existing initiatives – “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)” – with the objective of strengthening implementation of the National Food Security Act.
The scheme is aimed at ensuring assured financial support for intra-state transportation and handling of foodgrains, along with enhanced margins for Fair Price Shop (FPS) dealers to improve last-mile delivery under the Public Distribution System (PDS).
The Cabinet has also approved revised norms for Central assistance to states and Union Territories to meet expenditure related to intra-state movement and handling of foodgrains and FPS dealer margins, while retaining the existing funding pattern.
The government said the integrated scheme seeks to build a unified, citizen-centric and technology-driven PDS architecture to minimise leakages, improve transparency and strengthen food security for beneficiaries covered under the NFSA.
The scheme proposes the use of advanced technologies such as Artificial Intelligence (AI), Machine Learning (ML), Natural Language Processing (NLP) and Blockchain to modernise and optimise PDS operations.
The government said the initiative would enable the creation of standardised digital architectures and unified databases for real-time monitoring, AI-driven grievance redressal and analytics systems, state-level command and control centres, and ISO-certified process frameworks to improve transparency, security and sustainability in PDS operations.
The government said the programme would support its commitment to ensuring food and nutritional security for around 81.35 crore beneficiaries covered under the NFSA.
Over the past decade, the Centre has implemented several digitisation initiatives in the PDS ecosystem, including End-to-End Computerisation of the Targeted Public Distribution System (TPDS), Integrated Management of PDS (IM-PDS) and SMART PDS.
