DS: a tale of two States Mahim Pratap Singh
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  [image: A worker packs paddy bags for the rice mill. Photo: P.V.
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The Hindu A worker packs paddy bags for the rice mill. Photo: P.V. Sivakumar

  Related
   NEWS PDS leakages: the plot
thickens<http://www.thehindu.com/opinion/lead/article2351414.ece>
   TOPICS economy, business and
finance<http://www.thehindu.com/topics/?categoryId=684>

Tired of its own inefficiency in plugging leaks and ensuring timely delivery
of ration, the Madhya Pradesh government has decided to take the
privatisation route to improve its ailing Public Distribution
System<http://en.wikipedia.org/wiki/Public_Distribution_System>.


The new system is being put in place by a corporate consortium led by HCL
Infosystems with Edenred India Private Ltd -- a subsidiary of corporate meal
voucher provider and multinational hospitality giant Accor -- and Virgo
Softech Pvt. Ltd, an Indore-based IT firm as the other two members.

HCL will put in place a system to computerise the PDS apparatus and register
beneficiaries to be linked with UID, while Edenred will print and provide
the food coupons.

Virgo Softech will provide the IT manpower and enrolment teams for door to
door registration, biographic and biometric data capturing.

With this, Madhya Pradesh will become the first State in the country to link
its PDS to the UID with private participation on such a massive scale.

The State government's move needs to be seen in the context of the larger
national picture to scrap the existing Targeted Public Distribution
System<http://en.wikipedia.org/wiki/Public_Distribution_System>altogether
and replace it with food coupons or cash
transfers <http://en.wikipedia.org/wiki/Cash_transfers>. The UPA
government's Chief Economic Advisor Kaushik Basu has vociferously advocated
the deregulation of the PDS and moving to cash transfers or food coupons.

Interestingly in Madhya Pradesh's case, HCL infosystems has provided highly
inflated figures about the scope and coverage of the project on its
website<http://www.hclinfosystems.in/news186.htm>.


According to HCL, the contract would involve setting p an efficient food
distribution system with "over 10 million expected transactions per month at
Rs. 10.98 (per transaction per family) spread over 78 months".

Based on these figures, the government ought to be paying the consortium Rs.
131.76 crore per year and over Rs.850 crore for the entire 78-month
duration.

However, Dipali Rastogi, Commissioner, Food and Civil Supplies department
corrects the figures provided by HCL thus.

"The total cost of implementation for a period of sixty months (not 78)
comes to Rs. 454 crore or Rs.98 crore a month but we will be saving Rs. 420
crore by eliminating duplicate ration cards. So the cost to the government
is next to nil. What HCL write on their website is their call," says Ms.
Rastogi.

But why privatise?

"Look, plugging leakages and rooting out corruption has proved to be beyond
our core-competency. If we can have someone else provide these services on
our behalf in a better and cost-effective manner, where is the problem? I
admit it is a brave step, but necessary nonetheless," says Ms. Rastogi.

However, the fact that UID can cure the problem of beneficiaries being left
out of the PDS net is contested.

"UID can, at the most, address the problem of duplication of cards. But
misclassification of families in the "BPL census" has little to do with
identity fraud or "duplication". Misclassification can occur when the
criteria used for identification of BPL families are incorrect," says
development economist Reetika Khera.

"As for food coupons, they can be an important "last mile" authentication
measure. However, the Bihar experience shows how this accountability measure
can be undermined. For instance, in many cases, the coupons never reached
card holders, they went straight into the hands of dealers; or dealers
"charged" two months worth of coupons, while distributing only one month's
grains. The accountability measures can only work along with other
safeguards, most importantly a good vigilance system, which in turn depends
on political will," says Ms. Khera.

According to 
UIDAI<http://en.wikipedia.org/wiki/Unique_Identification_Authority_of_India>chairperson
Nandan Nilekani the UID card will be voluntary but the MP
government is going to make UID mandatory for PDS beneficiaries.

*Chhattisgarh*

While the Madhya Pradesh government has set an example of sorts by
privatising the bulk of its PDS service, neighbouring Chhattisgarh achieved
its much celebrated PDS revamp for a mere Rs. 4 crore.

How?

"We had our entire beneficiary database digitised by the National
Informatics 
Centre<http://en.wikipedia.org/wiki/National_Informatics_Centre>(NIC).
For better monitoring, we put in place a system of doorstep delivery
of ration at the fair price shop and intimated people of it by SMS alerts.
We also set up a dedicated call centre to receive complaints and
grievances<http://en.wikipedia.org/wiki/Complaints_and_Grievances>.
Finally, we brought the supply chain under online monitoring to plug
leakages," says Rajeev Jaiswal, Joint Director, Chhattisgarh food and civil
supplies department.

And why did Chhattisgarh decide to skip UID and food coupons?

"Look, the system that is in place is not faulty, its implementation is. We
thought messing with the existing system would create a new set of problems.
For instance, old or disabled people often have neighbours or relatives
bring them their ration. That is not possible with the UID or food coupons.
As for bogus cards, we eliminated over 2.5 lakh bogus cards through
door-to-door physical verification," says Mr. Jaiswal.

-- 
Adv Kamayani Bali Mahabal
+919820749204
skype-lawyercumactivist
*
*
*The UID project i**s going to do almost exactly the same thing which the
predecessors of Hitler did, else how is it that Germany always had the lists

of Jewish names even prior to the arrival of the Nazis? The Nazis got these
lists with the help of IBM which was in the 'census' business that included
racial census that entailed not only count the Jews but also identifying
them. At the United States Holocaust Museum in Washington, DC, there is an
exhibit of an IBM Hollerith D-11 card sorting machine that was responsible
for organising the census of 1933 that first identified the Jews.*
*
*
*http://saynotoaadhaar.blogspot.com/*
*http://aadhararticles.blogspot.com/*
*http://www.facebook.com/home.php?sk=group_162987527061902&ap=1*<
http://www.facebook.com/home.php?sk=group_162987527061902&ap=1>






-- 
Adv Kamayani Bali Mahabal
+919820749204
skype-lawyercumactivist
*
*
*The UID project i**s going to do almost exactly the same thing which the
predecessors of Hitler did, else how is it that Germany always had the lists

of Jewish names even prior to the arrival of the Nazis? The Nazis got these
lists with the help of IBM which was in the 'census' business that included
racial census that entailed not only count the Jews but also identifying
them. At the United States Holocaust Museum in Washington, DC, there is an
exhibit of an IBM Hollerith D-11 card sorting machine that was responsible
for organising the census of 1933 that first identified the Jews.*
*
*
*http://saynotoaadhaar.blogspot.com/*
*http://aadhararticles.blogspot.com/*
*http://www.facebook.com/home.php?sk=group_162987527061902&ap=1*<
http://www.facebook.com/home.php?sk=group_162987527061902&ap=1>

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