Cabinet approves SARTHAK-PDS scheme to modernise public distribution system

The Cabinet Committee on Economic Affairs (CCEA) has approved the continuation and integration of two major food distribution schemes under a new umbrella programme called the Scheme for Assistance in Ration Transport and Handling-Income with Automation in PDS (SARTHAK-PDS).

Duration and Financial Outlay

The Central Government will spend ₹25,530 crore over the next five years as its share for implementing the scheme during the 16th Finance Commission cycle. The programme will continue until March 31, 2031.

Schemes Integrated Under SARTHAK-PDS

The SARTHAK-PDS scheme merges two existing schemes:

• “Assistance to State Agencies for intra-State movement of foodgrains and FPS dealers’ margin under NFSA”
• “Scheme for Modernization and Reforms through Technology in Public Distribution System (SMART PDS)”

The integration aims to strengthen the implementation of the National Food Security Act (NFSA).

Objectives of the Scheme

The scheme seeks to:

• Ensure assured financial support for intra-state transportation and handling of foodgrains
• Enhance margins for Fair Price Shop (FPS) dealers
• Improve last-mile delivery under the Public Distribution System (PDS)
• Strengthen food and nutritional security for beneficiaries

Revised Central Assistance Norms

The Cabinet has approved revised norms for Central assistance to States and Union Territories to cover expenditure related to:

• Intra-state movement of foodgrains
• Handling operations
• FPS dealer margins

The existing funding pattern between the Centre and States will continue.

Use of Advanced Technology

The SARTHAK-PDS programme proposes the adoption of advanced technologies such as:

• Artificial Intelligence (AI)
• Machine Learning (ML)
• Natural Language Processing (NLP)
• Blockchain

These technologies will help modernise and optimise Public Distribution System operations, improve transparency, reduce leakages, and enhance efficiency.

Coverage Under NFSA

The government stated that the programme would support food and nutritional security for around 81.35 crore beneficiaries covered under the NFSA across the country.

Digitisation of PDS Ecosystem

Over the last decade, the Centre has implemented several digitisation initiatives in the PDS system, including:

• End-to-End Computerisation of Targeted Public Distribution System (TPDS)
• Digitisation of ration cards
• Aadhaar seeding
• Electronic Point of Sale (e-POS) devices
• Online allocation and supply chain tracking,