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 has approved the "SARTHAK-PDS" umbrella scheme with a Central outlay of Rs. 25,530 crore to operate through the 16th Finance Commission cycle until March 31, 2031. This initiative integrates foodgrain transport assistance with technological modernization to strengthen the National Food Security Act (NFSA) across 36 States/UTs. The scheme focuses on enhancing last-mile delivery, revising Fair Price Shop (FPS) dealer margins, and implementing advanced technologies like AI and Blockchain.
**Key Points / Main Content**
**Integration and Financial Provisions**
* Consolidates two existing programs: "Assistance to State Agencies for intra-State movement of foodgrains and FPS dealers’ margin" and "SMART PDS."
* Allocates a total of Rs. 25,530 crore as the Central share for a five-year period.
* Revises Central assistance norms for expenditures incurred by States/UTs regarding handling, intra-state movement, and dealer margins.
**Technological Modernization**
* Incorporates advanced technologies including Artificial Intelligence (AI), Machine Learning (ML), Natural Language Processing (NLP), and Blockchain.
* Establishes a unified, interoperable PDS architecture with standardized databases for real-time monitoring.
* Introduces State Command Control Centres for data-driven oversight and AI-driven grievance and analytics systems.
* Implements ISO-certified process frameworks to ensure transparency, security, and sustainability in operations.
**Operational Objectives**
* Aims to ensure last-mile delivery of foodgrains while minimizing leakages in the distribution chain.
* Continues existing technology-led reforms such as Aadhaar seeding, e-PoS automation, and digitized ration cards.
* Provides a citizen-centric ecosystem through applications like "Mera Ration," "Anna Mitra," and "Anna Sahayata."
**Impact Analysis**
**State and Union Territory Agencies**
**Impact**
Agencies receive revised financial assistance and standardized architectures for intra-state foodgrain movement and handling.
**Action Required**
States must implement State Command Control Centres and align logistics with the revised Central assistance norms.
**Fair Price Shop (FPS) Dealers**
**Impact**
Dealers benefit from higher commission margins and continued financial support for operations.
**Action Required**
Dealers must continue utilizing automated systems, including e-PoS devices and computerized supply-chain management.
**NFSA Beneficiaries (81.35 Crore Persons)**
**Impact**
Beneficiaries gain improved food security through a more transparent, secure, and technologically optimized distribution system.
**Action Required**
Beneficiaries can utilize citizen-facing digital applications for ration services and grievance redressal.
Key Entities Referenced
SARTHAK-PDS: An umbrella scheme (Scheme for Assistance in Ration Transport and Handling-Income with Automation in PDS) that integrates technology and financial assistance for foodgrain delivery.
National Food Security Act, 2013 (NFSA): The primary legislation governing food security in India, which the SARTHAK-PDS scheme aims to implement and strengthen.
SMART PDS: A sub-scheme for modernization and reforms through technology in the Public Distribution System, integrated into the SARTHAK-PDS umbrella.
Cabinet Committee on Economic Affairs (CCEA): The high-level government body that approved the continuation and integration of these schemes for the 16th Finance Commission cycle.
Ministry of Consumer Affairs, Food & Public Distribution: The nodal ministry responsible for the oversight and implementation of the SARTHAK-PDS and associated PDS reforms.
Ministry of Consumer Affairs, Food & Public Distribution
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 2:57PM 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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