Cabinet approves five-year extension of SARTHAK-PDS scheme with Rs 25,530 crore outlay

The scheme seeks to modernise the public distribution system through technology-led reforms for greater efficiency and reduced leakages.

New Delhi: The Union Cabinet on Wednesday approved a five-year extension of the SARTHAK-PDS scheme with a Rs 25,530 crore outlay till March 2031.

The scheme seeks to modernise the public distribution system through technology-led reforms aimed at improving efficiency and reduced leakages.

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, also approved revised norms for central assistance to states and Union Territories for intra-state movement and handling of foodgrains, along with higher margins for fair price shop (FPS) dealers, while retaining the existing funding pattern.

SARTHAK-PDS merges two programmes — assistance for intra-state foodgrain movement and FPS dealer margins under the National Food Security Act (NFSA), and the SMART-PDS modernisation scheme — into one unified framework aimed at strengthening last-mile delivery and curbing leakages.

Information and Broadcasting Minister Ashwini Vaishnaw said the scheme covers the entire PDS value chain. 

“Right from selection of beneficiaries to movement of foodgrains, to getting proactive feedback from citizens, to reducing transportation distance — all those activities have been approved,” he told reporters.

Vaishnaw noted that states were struggling with transportation costs, which will now be supported under the scheme along with enhanced remuneration for FPS dealers.

The scheme introduces three major AI-powered platforms: NIRMAL, an AI-driven beneficiary registry to remove duplicate and ghost beneficiaries; QR-coded grain bags for tamper-proof tracking; ASHA, a multilingual AI assistant for grievance redressal; and SAKSHAM, an AI supply-chain platform for GPS tracking, demand forecasting and route optimisation.

The government expects 15-50 per cent reduction in logistics costs, annual savings of Rs 280 crore, and a 36 per cent cut in carbon emissions through optimised shorter routes.

Vaishnaw clarified that SARTHAK-PDS does not replace the existing PDS architecture but brings structural reforms in foodgrain delivery, logistics, transportation, material handling and grievance redressal.

 It combines assured financial support with a unified, citizen-centric digital ecosystem to ensure efficient last-mile delivery and minimise leakages.

The scheme will use AI, Machine Learning, NLP and Blockchain for real-time monitoring, unified databases, State Command Control Centres and ISO-certified processes.

It is anchored in the NFSA commitment, covering 81.35 crore beneficiaries. SARTHAK-PDS builds on over a decade of reforms, including TPDS computerisation, IM-PDS and SMART-PDS. Since April 2023, SMART-PDS has enabled nationwide digitisation of ration cards, Aadhaar seeding and e-PoS automation across all states and Union Territories.