All ration shops to be computerised by March 2017

New Delhi: After the success of transferring gas subsidy directly to consumer bank accounts, the government is set to remove leakages in food grains distribution through ration shops in the next 15 months, lowering the food subsidy bill.

All ration shops in the country will be computerised by March 2017 and only the genuine beneficiaries will be able to get wheat and rice, sources said. Food minister Ram Vilas Paswan has directed his ministry officials to work with states to ensure that the target is achieved, the sources said.

“Even the PM is monitoring the progress as he considers this a major economic reform to reduce subsidies,” a source said, adding food ministry officials are video conferencing with states on a daily basis on the subject.

The ration shop may be re-named, sources said as they are being given a device called point of sale. The device authenticates the beneficiary at the time of distribution and electronically records the quantity of foodgrain sold to him.

The Centre expects that by June 30, 2016, there will be 1,50,000 out of 5.42 lakh such shops in place, the remaining expected to be covered by March next year. After the computerisation programme began, the government has been able to save about Rs 4,200 crore in the last two years by removing more than 61 lakh bogus ration cards, a government official said.

The food subsidy bill has been estimated at Rs 1,24,419 crore in FY16. “It is difficult to estimate how much subsidy will be saved as there is no study to indicate the number of people who purchase grains for their own use,” the source said.

Once all ration shops have the E-PoS, only the cardholder will be able to buy grain.

The Centre has also liberalised rules allowing states the flexibility to decide whether to distribute grain or transfer the cash subsidies to their bank accounts directly, the sources said. Even within a particular city or town, both the options are available for the states simultaneously.

Under the National Food Security Act (NFSA), 25 states where it is has been implemented are allowed to distribute grain or cash subsidy.

After the pilot project of direct benefit transfer (DBT) in food subsidy in Chandigarh and Puducherry started from September 2015, the Centre has asked states to implement it in cities and towns, if they want.

The PMO is keen to implement the DBT is states, which will help the government to reform the Food Corporation of India, at the same time giving an option to consumers to buy better quality grains from open market, the sources said.

As per the DBT rules, the amount of food subsidy payable to consumers will be based on price differences between 1.25 times of the minimum support price (MSP) and the central issue price (CIP). For wheat, the subsidy will be about Rs 19.75 per kg, taking into account MSP of Rs 14.50 a kg and CIP of Rs 2 per kg under NFSA.

 

 

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