Cabinet extends SARTHAK-PDS scheme for 5 yrs with ₹25,530-crore outlay | Current Affairs | Vision IAS

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Cabinet extends SARTHAK-PDS scheme for 5 yrs with ₹25,530-crore outlay

28 May 2026
2 min

Extension and Merger of the 'SARTHAK-PDS' Scheme

The Union Cabinet has approved the extension of the 'SARTHAK-PDS' scheme for five years until March 2031, with a financial outlay of ₹25,530 crore. This is achieved by merging two existing programs.

Revisions and Criticism

  • The revision includes norms governing Central assistance to states and union territories for the intra-state movement and handling of food grains.
  • Fair price shop (FPS) dealers' margins have been revised, maintaining the existing funding pattern.
  • The All India FPS Dealers Federation criticized the increase in commission for ration dealers by only 10 paise per kilogram, labeling it as inadequate.

Scheme Overview

The SARTHAK-PDS scheme consolidates two existing programs:

  • 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 merger aims to strengthen the implementation of the National Food Security Act, 2013 (NFSA) by integrating financial assistance and technology modernization under a single framework.

Objectives and Technology Integration

  • The scheme has a dual mandate: 
    1. Provide assured financial support for intra-state movement, handling, and FPS dealers' margins.
    2. Build a unified, citizen-centric, and interoperable PDS architecture to enhance last-mile service delivery and minimize leakages.
  • Technology deployment includes: 
    1. Artificial Intelligence (AI), Machine Learning (ML), Natural Language Processing (NLP).
    2. Blockchain to modernize PDS operations.
  • Key deliverables: 
    1. Standardized architectures and unified databases for real-time monitoring.
    2. AI-driven grievance redressal and analytics systems.
    3. State Command Control Centres for data-driven oversight.
    4. ISO-certified process frameworks for transparency, security, and sustainability.

SMART PDS Scheme Achievements

Since April 1, 2023, SMART PDS has led technology-based reforms, including:

  • Complete digitization of ration cards.
  • Aadhaar seeding.
  • FPS automation through electronic Point of Sale (e-PoS) devices.
  • Online allocation and computerized supply-chain management across all 36 states and union territories.

Conclusion

The consolidation move aims to strengthen NFSA implementation, focus on last-mile service delivery, and minimize leakages while revising norms for state assistance and FPS dealers' margins.

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RELATED TERMS

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AI, ML, NLP, Blockchain

These are advanced technologies being integrated into the PDS to modernize its operations. Artificial Intelligence (AI), Machine Learning (ML), and Natural Language Processing (NLP) can be used for data analytics and grievance redressal, while Blockchain technology can enhance transparency, security, and traceability of food grains throughout the supply chain.

e-PoS devices

Electronic Point of Sale (e-PoS) devices are used for the automation of Fair Price Shops (FPS). They enable digital transactions for food grain distribution, linking beneficiaries' identity with their ration entitlements and ensuring transparency and accountability in the Public Distribution System.

SMART PDS

Scheme for Modernization and Reforms through Technology in PDS. This scheme focuses on integrating technology such as AI-enabled analytics, automated grievance redressal, and digital processes to enhance the efficiency, transparency, and monitoring of the Public Distribution System.

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