by…

G. Mayil Muthu Kumaran

Technical Director, NIC

ePDS FPS Automation DBT for PDS

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PDS • The introduction of rationing in India dates back to the

1940s Bengal famine.

• This rationing system was revived in the wake of acute food shortage during the early 1960s, before the Green Revolution. It involves 2 types- RPDS and TPDS.

• It is not without its defects. With a coverage of around 400 million below-poverty-line (BPL) families, a review of the PDS has discovered the following structural shortcomings and disturbances:

• Largest Verifiable Network

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PDS Contd

• Growing instances of the consumers receiving inferior quality food grains in ration shops.[7]

• Deceitful dealers replace good supplies received from the F.C.I (Food Corporation of India) with inferior stock and sell FCI stock in the black market.

• Illicit fair price shop owners have been found to create large number of bogus cards to sell food grains in the open market.

• Many FPS dealers resort to malpractice, illegal diversions of commodities, holding and black marketing due to the minimum salary received by them.[8]

• Numerous malpractices make safe and nutritious food inaccessible and unaffordable to many poor thus resulting in their food insecurity.[9]

• Identification of households to be denoted status and distribution to granted PDS services has been highly irregular and diverse in various states. The recent development of Aadhar UIDAI cards has taken up the challenge of solving the problem of identification and distribution of PDs services along with Direct Cash Transfers.

• Reference ISSUE PAPER on Public Distribution System in India A project report submitted to Prof. Prem Pangotra & Prof. Ravindra Dholakia

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Leakage and Diversion in PDS

• “For every Rs. 4 spent on PDS, only Rs. 1 reaches the poor”

• “57% of the PDS food grain does not reach the intended people” (UIDAI, 2009)

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The major reasons for leakage and diversion in PDS are:

•

• Inclusion Error: This is caused due to inclusion of people who are not eligible into BPL and AAY category. It results in diversion of subsidies to unintended beneficiaries and also in many cases poorer off take of food grains from FPS which in turn incentivizes the FPS owners to divert this portion of food grains to open market.

• • Ghost Cards: Bogus ration cards in the name of fictitious owners, is a

serious problem causing significant leakages as it does not reach the intended beneficiaries. This is estimated to be around 16.7% (Exhibit 8).

• Shadow Ownership: This is caused due to migrant families in search of work not able to avail their quota or poor families due to paucity of funds keep the ration cards with FPS owners or others to avail credit or get small portions of cash.

• • The non-viability of FPS‟s is one of the major drivers for the diversion of

food grains from retail points. The FPS owners in order to bridge the viability gap divert the food grains intended for ration card holders to open market and report unavailability of stock in the store.

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Why NIC ??

National Informatics Centre

•http://www.nic.in

Department of Food & Public distribution System

•http://dfpd.nic.in/

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ePDS

• Public Distribution System (PDS) in the country facilitates the supply and distribution of essential commodities to a large number of poor people through a network of Fair Price Shops at a subsidized price on a recurring basis.

• ePDS implements Public Distribution System in electronic mode

• ePDS facilitates PDS through management of Ration Card and Supply Chain of Ration Card electronically and fairly.

• http://epds.nic.in

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ePDS- Implementations

ePDS

Online Application of Ration

Card

Integration with CSC

ADD/DEL/ MOD of

Ration card

UID and Bank A/c seeding

DBT for PDS

NPR AHL TIN seeding

KOIL and Gas beneficiaries

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ePDS - Features

Online application of ration card

Addition, Deletion and Modification of Ration card beneficiaries

Provides functionality to Transfer, Surrender and Duplicate the existing ration card (Mutation)

Aadhar and Bank account details seeding

Multiple modification can done at a time on a ration card

Identification of Koil and Gas beneficiaries

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4

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6

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States Covered by e-PDS

Lakshadweep

Haryana

Chandigarh

Dadra & Nagar Haveli

Daman & Diu

Manipur

Maharashtra

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Sikkim Delhi

Tripura

Jammu & Kashmir

FPS Automation • Aims in distributing the essential commodities using

electronic device with biometric authentication of any member of beneficiary in order to restraint the diversion at the FPS level.

• Provides a medium to record and transmit the transactions made at the FPS.

• Intends to authenticate the beneficiary to ensure that the commodity issuance is happening to the intended beneficiary by biometric authentication with UIDAI server.

• http://annavitran.nic.in/FpsSales

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FPS Automation Process

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Fully Online

Offline

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FPS Automation – Fully Online Mode

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FPS Automation – Offline Mode

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States and UTs covered by FPS Automation - Pilot

Lakshadweep

Haryana

Daman & Diu

Maharashtra

Delhi Sikkim Uttar Pradesh

Odisha

Tripura

Uttarakhand

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POS Specifications S. No. Description Specification

1 Processor Secure Processor capable of performing at least 10 transactions per minute in laboratory environment (Each Transaction consists of 1. Perform Biometric Authentication of the PDS beneficiary with UIDAI server 2. Generate Encrypted pay load for maximal Sales data. 3. Store Encrypted transaction data in the local storage 4. Transmit the Encrypted transaction sales data to PDS server. 5. Remove the locally stored sales data only after getting acknowledgement

from the server )

2 OS Secure OS having an inbuilt web browser supporting HTML5, CSS3, Java Scripts. (Source code of OS shall be CC compliant at least EAL level 2 certified or OS hardened and tested by an independent lab with a declaration of equivalence to CC EAL2

3 Memory 256MB or Higher RAM and 1GB or higher Flash memory

4 Expansion slot Micro SD Slot to support SD card with minimum 8 GB high speed SD card

5 Communication Should support GSM Network with GPRS, Wi-Fi, Ethernet, PSTN

6 Interface USB 2.0 or higher. The USB port should support device battery charging through any other USB charging source, RS-232 (optional)

7 Display 2.75 inch or higher color TFT Display supporting QVGA (320 x240) or better resolution.

8 Key pad Hard (Optional) QWERTY keypad

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POS Specifications S. No. Description Specification

9 Battery Swappable &Dry/Rechargeable 2600mAH or higher, Li-ion or Li Polymer battery capable of providing minimum 6 hours of operation while all function of device active.

10 Power adapter Power Adaptor with surge protection and operating range 100 to 240V, 50Hz. AC input.

11 SIM & SAM slot One or more GSM SIM slot and minimum one SAM slots for software upgradation in device.

12 Printer 2” or higher Thermal / Non-Thermal Printer

13 Audio (optional) Good quality Speaker with 1W or higher output for announcements.

14 Finger print scanner STQC certified Finger Print Module

15 Iris scanner (optional) STQC certified IRIS scanner Module

16 Smart Card (contact type) (optional)

1 or 2 Number of Smart Card Reader & Writer (ISO 7816 Complaint )

17 Status indications Status indicator provides ease of use, Indicators for connectivity (presence/absence), signal strength, battery status.

18 Other accessories Durable Carry Case and user manual etc.

19 SDK Appropriate SDK need to be provided along with the devices

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POS Specifications

S. No. Description Specification

20 Terminal Management Device should be remotely manageable in secured mode

21 Environmental, health and safety durability, humidity, EMI/EMC compliance

Dry heat test- Operating (50 ±2˚C for 2 hrs) Cold test – Operating (0 ±3˚C for 2 hrs) Dry heat test (55 ±2˚C for 2 hrs) Damp heat Cyclic (40˚C for (12+12 hrs)), No. of cycles : 2 Cold Test (-10 ±3˚C for 2 hrs) 21 & Drop/Free Fall Test, in unpacked, switched off and normal handling conditions (Height : 100mm, Total no. of falls : 2) Vibration Test should be in packed condition, switched off conditions (10- 150Hz, 0.15mm/2g, 10 sweep, cycles/axes) Bump test should be in packed condition, switched off condition.(1000Bumps, 40g, in vertical position)

22 Add-On Antenna May be provisioned for the POS devices which will be used in remote locations and hilly areas for better signal reception and seamless transactions

23 Warranty

Suitable Warranty support

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Mobile Tablet Specifications S. No. Description Specification

1 Display screen 7” inches or higher scratch resistant multi point capacitive touch with minimum WSVGA resolution (1024 X 600)

2 Processor speed 1 GHz Dual Core or higher ARM /x86 processor or equivalent

3 RAM 1 GB or higher

4 Inbuilt storage 4 GB or higher flash memory

5 Expansion slot At least a micro SD slot supporting up to 32 GB memory card

6 Audio Good quality Speaker with 1W or higher output for announcements.

7 External keyboard support (optional)

Device should support keyboard through USB or Bluetooth interface.

8 Connectivity Device should support both 3G, GPRS and Wi-Fi, should support GPS feature

9 USB ports At least one free USB port shall be available after setting up the entire solution including peripheral devices Rechargeable 4000mAH or higher, Li-ion or Li Polymer battery

10 Battery capable of providing minimum 6 hours of operation while all function of device active. Operating system should be

11 Operating system Linux (Latest Stable Kernel)/Android 4.0 or higher/Windows. Device operating system which supports HTML5 based web browser and CSS 3

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Mobile Tablet Specifications

S. No. Description Specification

12 Certification RoHS (Restriction of Hazardous substance) CE or UL

13 Camera barcode reader Capable of reading 1D line barcode and QR codes with minimum 5Mp auto-focus camera

14 Indicators Status indicator provides ease of use, Indicators for connectivity (presence/absence), signal strength, battery status etc.,

15 SAM slot Device should have at least a SAM slot to support secure loading of signed applications

16 Biometric sensor STQC certified Finger Print Module

17 Iris scanner (optional) STQC certified IRIS scanner Module

18 Smart card reader (optional) ISO 7816 Compliant Dry heat test- Operating (50 ±2˚C for 2 hrs) -Storage-55 ±2˚C for 16hrs.in accordance with IS:9000/part- 3/section-5/1977(reaffirmed in 2007).

19 Environmental & durability Cold test – Operating (0 ±3˚C for 2 hrs) Storage-minus10degC For 4 hrs. at a temp. of 0 degree C in accordance with IS:9000/part-2/section-4/1977 (reaffirmed in 2007).

20 Printer Integrated or external

21 Antenna (mandatory) 21 Antenna (mandatory) Internal

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Mobile Tablet Specifications

S. No. Description Specification

22 Terminal Management Device should be remotely manageable in secured mode

23 Warranty Suitable Warranty support

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FPS Automation - Guidelines • The device to be used at the FPS may be of any form factor i.e. Point of Sale device

or mobile terminal that is capable of performing TPDS :related transactions.

• The main transaction to be undertaken through the device is authentication of beneficiaries, recording of sales to beneficiaries at the FPS and uploading of transaction data in the designated server.

• The uploaded data will be used to make online allocations for subsequent months. The authentication of beneficiaries initially could he done through any mechanism decided by the State/UT Govt. But, it would be done eventually through Aadhaar platform only.

• NIC shall prepare single standard software, which would be made available in standard operating environments like android, linux, windows and ios. This standard software shall be used by all States/UTs without exception.

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FPS Automation Guidelines @ http://pdsportal.nic.in/files/Ministry%20Revised%20Guidelines.pdf FPS Automation FRS @ http://pdsportal.nic.in/Files/PDS%20-%20FRS%20for%20Fair%20Price%20Shop%20Automation%20Ver1.0.pdf

DBT for PDS

• Direct Benefit Transfer (DBT) for PDS provides food subsidies in the form of cash to eligible beneficiaries.

• This food subsidy acquired through cash can be utilized by the beneficiary for other useful purposes.

• The purpose of Direct Benefits Transfer is to ensure that benefits/subsidies go to individuals bank account electronically, minimizing tiers involved in fund flow thereby reducing delay in payment

• Reduces delay in payment, ensuring accurate targeting of the beneficiary and curbing pilferage and duplication.

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States Covered Under DBT

36

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Total States/UTs

DBT States/UTs

0 10 20 30 40

Direct Cash transfers under NFSA launched in three Union Territories –

Chandigarh

w.e.f. 01 Sept’ 2015

Puducherry

w.e.f. 01 Sept’ 2015

Dadra & Nagar Haveli* (in partial areas)

w.e.f. 01 Mar’ 2016

•Note: Note: DBT in Cash Transfer mode has been implemented for 14 FPS areas (i.e. Silvassa Municipal and Dadra Panchayat areas) of Dadra & Nagar Haveli UT. Whereas for remaining 62 FPSs 748.34 tonnes of foodgrains (685.48 tonnes Rice & 62.86 tonnes of Wheat) have been allocated on monthly basis..

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Total Families and Beneficiaries covered under DBT

-

50,000

1,00,000

1,50,000

2,00,000

45,737

1,50,222

7,115

Families Covered

-

1,00,000

2,00,000

3,00,000

4,00,000

5,00,000

6,00,000

1,99,747

5,87,725

31,549

Beneficiaries Covered

Note: Note: DBT in Cash Transfer mode has been implemented for 14 FPS areas (i.e. Silvassa

Municipal and Dadra Panchayat areas) of Dadra & Nagar Haveli UT. Whereas for remaining 62

FPSs 748.34 tonnes of foodgrains (685.48 tonnes Rice & 62.86 tonnes of Wheat) have been

allocated on monthly basis..

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DBT – Monthly Subsidy Amount

-

1,00,00,000

2,00,00,000

3,00,00,000

4,00,00,000

5,00,00,000

6,00,00,000

7,00,00,000

8,00,00,000

Chandigarh Puducherry Dadra & Nagar Haveli

1.98 Crore

7.93 Crore

0.37 Crore

IN R

UP

EES

UTS

MONTHLY SUBSIDY AMOUNTS (IN INR)

Note: Note: DBT in Cash Transfer mode has been implemented for 14 FPS areas (i.e. Silvassa

Municipal and Dadra Panchayat areas) of Dadra & Nagar Haveli UT. Whereas for remaining 62

FPSs 748.34 tonnes of foodgrains (685.48 tonnes Rice & 62.86 tonnes of Wheat) have been

allocated on monthly basis.. 26

Challenges faced in DBT for PDS

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Challenges with Beneficiaries

1

• Beneficiaries do not have a bank account/Aadhar number/ bank account linked to their Aadhar number.

2 • Subsidy sent to alternative member in the family

3 • Eligible beneficiaries are ignorant about DBT scheme.

4 • Beneficiaries are illiterate to monitor the transaction.

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• Subsidy sent to the male member’s bank account which women are not aware of

Challenges faced in DBT for PDS

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Challenges with Department

1 • Beneficiaries are not given clear information about

the date on which they would receive payment

2 • Money transfer have been erratic, with beneficiaries

not receiving subsidy on the same date every month

3 • Lack of clarity from the response file provided by

PFMS

Challenges faced in DBT for PDS

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Challenges with Banks

1 • UID seeded with multiple bank accounts

2 • Expired beneficiaries’ updates

3 • Change of Bank accounts and its implications

Way forward of PDS

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1 •Kind (Grains)

2 •Cash

3 •or Both

4 •Cashless

muthu@nic.in 31

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• Political will for successful Implementation

• Incentivize the FPS dealers (Recognize the honest FPS dealers)

• http://www.ndtv.com/video/news/truth-vs-hype/truth-vs-hype-the-hunger-project-277857