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The Cabinet approved a ₹25,530 crore, five-year scheme merging two public distribution system programmes into Sarthak-PDS to improve last-mile food grain delivery for over 80 crore beneficiaries.
The integrated scheme seeks to create a unified, citizen-centric PDS architecture by deploying technologies such as artificial intelligence.New Delhi: The cabinet approved a ₹25,530 crore overhaul of its public food distribution network on Wednesday, merging two existing subsidy programmes into a single technology-led scheme designed to feed over 81.35 crore beneficiaries more efficiently and with less waste.
The five-year plan, starting in FY2027, will bring state transportation subsidies and fair price shop commissions under a single programme called Sarthak-PDS, while introducing artificial intelligence, blockchain, and machine learning tools to monitor supply chains. The government expects the rationalisation of food grain transport routes to save ₹280 crore annually, minister Ashwini Vaishnaw told reporters after the cabinet committee on economic affairs (CCEA) decision.
Digital push
The announcement shows Prime Minister Narendra Modi's push to digitise welfare delivery, building on a decade of reforms that have linked ration cards to the Aadhaar database and automated fair price shops across all 36 states and Union territories.
Vaishnaw told reporters that the new integrated scheme seeks to create a unified, citizen-centric (PDS) architecture by deploying technologies such as artificial intelligence (AI), machine learning (ML), Natural Language Processing (NLP), and Blockchain for real-time monitoring, grievance redressal, analytics, and supply-chain oversight.
Sarthak-PDS will support the food security framework for beneficiaries covered under the National Food Security Act by ensuring last-mile delivery of foodgrains, reducing leakages, and improving transparency in the system, an official statement from the CCEA, led by Prime Minister Narendra Modi, said.
Standardized architecture
The scheme also proposes standardized digital architecture, unified databases, state-level command and control centres and ISO-certified operational frameworks aimed at improving security, transparency and sustainability of PDS operations across the country.
The integrated scheme builds on the digitisation reforms undertaken over the past decade, including the end-to-end computerisation of the Targeted Public Distribution System (TPDS), the Integrated Management of PDS (IM-PDS), and the SMART PDS initiatives.
Since April 2023, the SMART PDS programme has enabled the digitisation of ration cards, Aadhaar seeding, and the automation of fair price shops through e-PoS devices, online allocation systems, and computerised supply-chain management across all 36 states and Union territories.
Officials said the integration of schemes under a single umbrella programme is expected to streamline implementation, improve operational efficiency and provide a more technology-driven mechanism for the delivery of subsidised foodgrains. The proposed changes are also expected to reduce carbon emissions by streamlining the transportation of foodgrains.
About the Authors
Gireesh Chandra Prasad
Gireesh writes on the Indian economy, government policy, regulatory developments and trends in the business landscape. His areas of reporting include finance, taxation, company law, bankruptcy code, competition law, financial reporting and auditing. He also covers federal policy think tank NITI Aayog. Gireesh has 25 years of experience in leading news organisations.
Dhirendra Kumar
Dhirendra Kumar is a seasoned policy reporter with about 20 years of experience in deep, on-ground reporting across key economic and governance sectors. His work spans finance, public expenditure, disinvestment, public sector enterprises, textiles, trade, consumer affairs, and agriculture, with a strong focus on uncovering structural policy shifts and their real-world impact.<br><br>Kumar has been awarded the Chaudhary Charan Singh Award for Excellence in Journalism in Agricultural Research and Development, recognising his contribution to reporting on critical issues in the farm sector. He has also been a recipient of a fellowship in international trade from the National Press Foundation, which has further strengthened his coverage of global trade dynamics and their implications for India.<br><br>Kumar is known for breaking complex policy developments into clear, accessible stories. His reporting focuses on uncovering under-reported trends, explaining policy shifts, and helping readers stay informed about developments that shape India’s economic landscape.
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