1. “PLUGGING THE LEAKS”
A thought initiative felt and prepared for bringing out reforms in present PDS
( Public Distribution System) via MANTHAN 2013 by the team:
RENAISSANCE
ANUJ MANTRI
UMESH PATEL
AYUSH MISHRA
VISHAL KUMAR PRASAD
MOHAMMED PARVEZ KHAN

2. INTRODUCTION
PDS was basically inspired from the British system of rationing system during the world war II which was then established and
stabilized as a venture of FCI which was setup in 1965, with the following primary objectives as :
Providing food grains and other essential items to vulnerable
sections of society at reasonable ( subsidized ) prices.
To have a moderating influence on the open market
prices of cereals, the distribution of which constitutes a
fairly big share of total marketable surplus.
To attempt socialization in the matter of distribution of
essential commodities.
PDS corruption estimate Rs. crores
2004-05 Rs 16005
2009-2010 Rs 20746
This number closely matches the lower
bound estimate of 2G corruption.
But 2G scam happens once in a
decade.
“The PDS corruption happens every
year”

3. STAGES PROBLEMS
1. FARMERS • Unavailability of raw materials
• Lack of resources
2. PROCUREMENT
3. GODOWNS • Obsolete Infrastructure
• Poor maintenance
4. TRANSPORTATION • Leakages
• Supply delays
• Higher cost
5. STATE STOCK HOUSES • Obsolete Infrastructure
• Poor maintenance
• Extortion and less no. of houses
6. FPS • Diversion
• Under weight
• Unfair business
7. CONSUMERS • Unavailability, unaffordability, non
accessibility
• Lack of information
• Exclusion error & Inclusion error
* The current storage capacity is 62.8
million tons, which is proving inadequate
as India had record rice and wheat stocks
of 65.6 million tonnes in its godowns in
early June. Officials say the problem will
only get increased as per present
execution status.

4. CDBMS
CONSUMERSYSTEM DE STATE
FPSFPSFPS
SALIENT FEATURES
 CDBMS will manage and enhance the
accessibility and authenticity of consumers to
PDS
 States shall ensure food security of its people
and maintain a real-time accountability to the
central control system.
 Consumers can have their eyes. Ears and
voice to all steps and stages of the PDS in this
set of discipline.
 Inspectors at each level to check leakages
and unfair business.
 Informers at consumer level to improve
transparency and access

5. THE INSIGHT TO THE INTITATIVE
( ACTIONS - STEPWISE, STAGEWISE )
STAGES OF PDS
PROCUREMENT
CENTRAL-
STATE
STATE-
CONSUMER
PROCUREMENT:
• Encourage small farmers, and their productivity skills.
• SMS alerts- Nowadays person from almost every
section of the society posses a mobile, so govt can
send imp alerts like MSPs, their transaction records.
• Access to the producers and register them so that they
can be benefitted by the system and may be able to
benefit the system.
• FCI godowns
• TRANSPORTATION
• State Stock houses
Elements of
CENTRAL-
STATE
Stage

6. • FCI godowns
• TRANSPORTATION
• State Stock houses
Elements
of
CENTRAL
-STATE
Stage
CENTRE-STATE
STAGE
• Appoint engineers and specialists to
come up with very strictly disciplined
system of stock houses comprising
primarily of modern infrastructure
and accessorized with storing
technology skills.
• Mapping of transportation routes
• Increment in no. of stockhouses
• State should be strictly accountable
to the central controlling system, and
produce data of facts, status,
alongwith the set of programs viz.
distribution etc in real time manner,
as our proposed system is highly
network way connected.
• Inspectors and instructors are
needed to be recruited with strict
criteria to check the leakages, black
marketing and to ensure proper
storing techniques and control.

7. Our Proposed PDS system will have the following impacts and advantages:
Increased System Transparency and Accountability
“The most serious flaw plaguing the system at present is the lack of transparency and
accountability in its functioning”
• The Complete Online Real time synchronization between the Central and State database will
help in making the system more transparent.
• There will be full details on the portal of PDS indicating each and every data related to the
matter.
• Since, each and every step is very transparent, So, the Employees will be accountable for any
flaws or malfunctioning.
• This will also ensure easy and efficient monitoring of each stage working in the system.

8. Reduced PDS Leakages
“PDS Leakages will be reduced due to the following reasons:
• There will be route Mapping of all the Transportation of Food grains from FCI godowns to
State godowns.
• Due to real time online database, the leakages will be minimized to a large extent.
• The Local Community Inspectors will inspect and enquire about every type of leakages.
• Online biometric card swapping system will eliminate -
• inclusion errors,
• exclusion errors,
• double counting errors,
• Missing household errors and
• Shadow ownership error
• Also, this will lead to a reduction in the number of bogus cards.
• The system will ensure that PDS serves its actual purpose of providing food security to each
and every person in INDIA

9. Good quality of Food grains and reduction in diversion
• The local community inspector will inspect for the quality of the food grains
• If any FPS is found to be indulging in malpractices, its licence will be cancelled
immediately.
• The complete online system will reduce diversion to a very large extent.
Good Grievance Redressel Mechanism
• “The role and sole of our system is COMMON MAN”
• There will be a strong grievance redressel committee which will include local
members that will identify the grievances and listen and respond to them
immediately.

10. Suvidha card implementation faces following problems in implementation
• With implementation of modern computing,
chances of hacking increases
• Initial cost will increase due to the installation
of digital devices at every booth
• Chances of malfunctioning or deactivation
of consumer account from data base may
occur.
• Proper firewall with regular updates and
regular check-up will decrease the risk factor
• Reduction in taxes at different levels
• Keeping alternative options will remove the
risk factor

11. http://www.hindustantimes.com/Punjab/Ludhiana/FCI-rapped-for-wrong-procurement-
policies/SP-Article1-1073245.aspx
http://www.adb.org/publications/how-can-food-subsidies-work-better-answers-india-and-
philippines
http://planningcommission.nic.in/reports/peoreport/peo/peo_tpds.pdf
Tenth Five Year Plan 2002-07
Eleventh Five Year Plan
National Food Security Bill 2013
NCERT Economics
http://indiatoday.intoday.in/story/problem-of-plenty-food-grains-left-to-rot-in-the-open-as-
godowns-overflow/1/252581.html
http://fciweb.nic.in/
http://pdsportal.nic.in/main.aspx
http://mospi.nic.in/