Date: 2026-05-27Category: Press ReleaseState: Union GovernmentCountry: India
Cabinet approves Integration and Continuation of two schemes viz. (i) “Assistance to State Agencies for intra-State movement of foodgrains and FPS dealers’ margin under NFSA” and (ii) “Scheme for Modernization and Reforms through Technology in Public Distribution System (SMART PDS)” under umbrella scheme SARTHAK-PDS
**Executive Summary**
The Cabinet Committee on Economic Affairs (CCEA) has approved the "Scheme for Assistance in Ration Transport and Handling-Income with Automation in PDS" (SARTHAK-PDS) as an umbrella scheme with a Central outlay of Rs. 25,530 crore. Operating through the 16th Finance Commission cycle until March 31, 2031, the initiative integrates foodgrain movement assistance with technological modernization to strengthen the National Food Security Act (NFSA). Key objectives include ensuring last-mile delivery, increasing dealer commissions, and optimizing Public Distribution System (PDS) operations through advanced digital infrastructure.
**Key Points / Main Content**
**Scheme Integration and Funding**
* **Umbrella Structure:** Integrates two existing schemes: "Assistance to State Agencies for intra-State movement of foodgrains and FPS dealers’ margin" and "SMART PDS."
* **Financial Commitment:** The Central Government will spend Rs. 25,530 crore over the next five years.
* **Revised Norms:** The CCEA has revised Central assistance norms for meeting State/UT expenditures on foodgrain handling and Fair Price Shop (FPS) margins.
**Technological Modernization (SMART PDS)**
* **Advanced Analytics:** Implementation of Artificial Intelligence (AI), Machine Learning (ML), Natural Language Processing (NLP), and Blockchain technology.
* **Operational Oversight:** Establishment of State Command Control Centres and AI-driven grievance and analytics systems.
* **Standardization:** Use of unified databases, standardized architectures for real-time monitoring, and ISO-certified process frameworks to ensure transparency and security.
**Service Delivery and Social Commitment**
* **Beneficiary Reach:** Designed to fulfill food security commitments for 81.35 crore persons covered under the NFSA.
* **Leakage Reduction:** Aims to minimize leakages through an interoperable PDS architecture and computerized supply-chain management.
* **Last-Mile Efficiency:** Focuses on ensuring the availability of quality food grains through higher FPS dealer commissions and automated last-mile delivery.
**Impact Analysis**
**State Governments and Union Territories (UTs)**
**Impact**
States/UTs will receive continued and revised financial assistance for the intra-state movement and handling of foodgrains. They benefit from a modernized, technology-driven framework to oversee PDS operations across 36 regions.
**Action Required**
States must align with the unified PDS architecture, implement State Command Control Centres, and maintain digitized records for ration cards and Aadhaar seeding.
**Fair Price Shop (FPS) Dealers**
**Impact**
Dealers will receive higher commission margins and benefit from streamlined, automated operations.
**Action Required**
Dealers must continue using e-PoS (electronic Point of Sale) automation and adhere to the digitized supply-chain management protocols.
**NFSA Beneficiaries (81.35 crore persons)**
**Impact**
Beneficiaries gain improved access to quality food grains and citizen-centric digital tools like the "Mera Ration" and "Anna Sahayata" applications for better service transparency.
**Action Required**
Beneficiaries are encouraged to utilize digital platforms and dashboards for monitoring their entitlements and accessing grievance redressal systems.
Key Entities Referenced
SARTHAK-PDS: An umbrella scheme (Scheme for Assistance in Ration Transport and Handling-Income with Automation in PDS) that integrates financial assistance for foodgrain movement and technological modernization of the public distribution system.
National Food Security Act, 2013 (NFSA): The primary legislation governing food security in India, the implementation of which is strengthened by the SARTHAK-PDS scheme.
Cabinet Committee on Economic Affairs (CCEA): The high-level government body that approved the integration and continuation of PDS-related schemes with a central outlay of Rs. 25,530 crore.
SMART PDS: A sub-scheme focused on modernization and reforms through advanced technologies like AI and Blockchain, now integrated into the SARTHAK-PDS umbrella.
Cabinet Committee on Economic Affairs (CCEA)
Cabinet approves Integration and Continuation
of two schemes viz. (i) “Assistance to State
Agencies for intra-State movement of foodgrains
and FPS dealers’ margin under NFSA” and (ii)
“Scheme for Modernization and Reforms through
Technology in Public Distribution System
(SMART PDS)” under umbrella scheme
SARTHAK-PDS
Centre to spend Rs. 25,530 crore in next 5 years for
SARTHAK PDS
Continuation of schemes to ensure last-mile delivery of Food
grains with higher FPS Dealers’ commission
Government strive for intelligently optimized PDS operations
through advanced technologies to ensure transparency,
security and sustainability in PDS operations
Posted On: 27 MAY 2026 2:53PM by PIB Delhi
The Cabinet Committee on Economic Affairs (CCEA) chaired by the Prime Minister Shri Narendra Modi
has approved the continuation of the “Scheme for Assistance in Ration Transport and Handling-Income
with Automation in PDS” (SARTHAK PDS) as an umbrella scheme, in the 16th Finance Commission
cycle award period, with an outlay of Rs. 25,530 crore as Central share.
The CCEA has also decided to revise the norms of Central assistance for meeting expenditure incurred by
States/UTs intra-state movement & handling of foodgrains and FPS dealers’ margin and continuation of
the existing funding pattern of Central Assistance.
The Scheme is conceived as an umbrella scheme integrating the ongoing schemes: (i) “Assistance to State
Agencies for intra-State movement of foodgrains and FPS dealers’ margin under NFSA” and (ii) “Scheme
for Modernization and Reforms through Technology in Public Distribution System (SMART PDS)” to
comprehensively strengthen implementation of the National Food Security Act, 2013 (NFSA).
SARTHAK-PDS Scheme aims to provide (a) assured financial support for intra-State movement, handling
and FPS dealer’s margin, and (b) a unified, citizen-centric, intelligent and interoperable PDS architecture
that ensures last-mile service delivery, minimizes leakages and strengthens the nation’s commitment tofood security under NFSA, with the merged scheme to operate up to 31.03.2031.
SARTHAK-PDS Scheme seeks to modernize, integrate and intelligently optimize PDS operations through
advanced technologies such as Artificial Intelligence (AI), Machine Learning (ML), Natural Language
Processing (NLP) and Blockchain, by creating standardized architectures and unified databases for real-
time monitoring, AI-driven grievance and analytics systems, State Command Control Centres for data-
driven oversight, and ISO-certified process frameworks to ensure transparency, security and sustainability
in PDS operations.
Government of India has a social & legal commitment to the people of the nation - a dignified life by
ensuring them access to food and nutritional security through the availability of adequate quantities of
quality food grains. The Scheme will work towards fulfilling the Government of India's commitment to
81.35 crore persons covered under NFSA. Building on the statutory and policy framework, SARTHAK-
PDS retains and streamlines the financial assistance component while simultaneously embedding it within
a modern, technology-driven PDS ecosystem.
Over the past decade, the Government has implemented multiple digitization initiatives such as End-to-
End Computerization of TPDS, Integrated Management of PDS (IM-PDS) and SMART PDS, along with
citizen-facing applications like Mera Ration, Anna Mitra, Rightful Targeting Dashboard and Anna
Sahayata, and since 1st April 2023, the SMART PDS scheme has acted as the cornerstone of technology-
led reforms by enabling complete digitization of ration cards, Aadhaar seeding, FPS automation through e-
PoS, online allocation and computerized supply-chain management across 36 States/UTs.
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