The Union Cabinet has approved the ambitious SARTHAK-PDS scheme with a central outlay of Rs 25,530 crore for the next five years to modernise India’s Public Distribution System (PDS), improve foodgrain logistics and strengthen last-mile delivery under the National Food Security Act (NFSA).
The decision was taken by the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi. The umbrella scheme, officially called “Scheme for Assistance in Ration Transport and Handling-Income with Automation in PDS” (SARTHAK-PDS), will continue through the 16th Finance Commission cycle up to March 31, 2031.
Announcing the Cabinet decision, Information and Broadcasting Minister Ashwini Vaishnaw described the initiative as a “structural reform” of India’s food distribution system aimed at improving efficiency, transparency and logistics management rather than replacing the existing PDS structure.
The scheme integrates two ongoing programmes- assistance to state agencies for intra-state movement and handling of foodgrains along with fair price shop (FPS) dealers’ margins under NFSA, and the SMART PDS scheme focused on technology-driven reforms. By merging them into a single umbrella framework, the government aims to create a unified, citizen-centric and interoperable food distribution ecosystem.
According to the government, the scheme will support food security for nearly 81.35 crore beneficiaries covered under NFSA by ensuring uninterrupted last-mile delivery of subsidised foodgrains while also strengthening the financial viability of fair price shops through higher dealer commissions and continued logistical assistance to states and Union Territories.
A major focus of SARTHAK-PDS is the use of advanced technologies such as Artificial Intelligence (AI), Machine Learning (ML), Natural Language Processing (NLP) and Blockchain to improve transparency and operational efficiency. The government plans to establish unified databases, AI-driven analytics systems, real-time monitoring platforms and State Command Control Centres for data-based oversight of foodgrain movement and distribution.
The programme has been designed around three major technology pillars. The first, “Nirmal”, will function as an AI-powered real-time beneficiary registry enabling integration across ministries and welfare schemes to reduce duplication and improve targeting.
The second component, “ASHA”, is a multilingual AI-based grievance redressal and citizen engagement platform integrated with WhatsApp and chatbot services. The platform will be capable of handling nearly three lakh citizen interactions daily.
The third pillar, “Saksham”, focuses on AI-enabled supply chain management through vehicle tracking, QR-code based traceability systems and demand forecasting tools aimed at improving transportation efficiency and reducing leakages.
The optimisation initiative could reduce transportation distances for foodgrain movement by 15-50 percent, thereby lowering logistics costs and improving supply-chain efficiency.
Over the past decade, the government has already implemented several digital reforms in the PDS ecosystem, including end-to-end computerisation, Integrated Management of PDS (IM-PDS), Aadhaar seeding, e-PoS automation at fair price shops and mobile applications such as Mera Ration, Anna Mitra and Anna Sahayata. Since April 2023, SMART PDS has served as the foundation for technology-led reforms across all 36 states and Union Territories. The government said SARTHAK-PDS would build upon these reforms to create a more transparent, efficient and sustainable food security network for the country.