Centralised Online Real-time Electronic PDS CORE PDS, Chhattishgarh

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1 Centralised Online Real-time Electronic PDS CORE PDS, Chhattishgarh COREPDS-म र मर ज़

2 What was there before COREPDS? Chhattisgarh has computerized the whole PDS supply chain in Increased Transparency,Accountability, Efficiency

3 Situation before initiative As a result Leakages and diversion have drastically come down Genuine beneficiary in Chhattisgarh is no doubt, getting her full entitlements. But still there are problems faced by beneficiary at FPS.

4 Most common problems faced by beneficiary at FPS FPS is not open when the beneficiary wants to take her rations, leading to additional trips. FPS declares 'no stock' even when the FPS has sufficient stocks, leading to additional trips. The sales person does not accord due respect to the beneficiary or sometimes misbehaves.

5 Most common problems faced by beneficiary at FPS (contd.) Overcharging The sales person charges more than what is chargeable. Deliberate under-weighment of the commodities by sales person. Beneficiary may need to spend at least half a day to take commodities because of long queues.

6 Solution to above problems No technology can solve the above problems. But portability can solve the problems. Portability empowers beneficiary to go to an FPS giving better services, there by creating a reason for improvement in service at FPS. Solution is the Beneficiary empowerment

7 Power of right to chose Q Why your colony's provision shop-wala shall never ill-treat you? A if he ill-treats you or hurts your ego you will stop going to the shop. Because you have freedom to chose where to purchase he will treat you well.

8 What COREPDS offers The convenience that technology has given to a bank account holder to withdraw money from any ATM, is being offered to a poor BPL beneficiary in COREPDS

9 COREPDS Objectives To empower beneficiary To improve Service Delivery To reduce Diversion To weed out Bad FPS To create Transparency

10 Design Constraint No genuine beneficiary shall be denied her entitlements due to technical or operational issues We have built robust business continuity plan to allow issuing PDS commodities to a genuine beneficiary

11 To reduce diversion Introduce mechanical authentication at the time of service delivery. COREPDS allows authentication using - Smart Ration card - RSBY Smart Card - OTP on registered mobile number - Aadhaar authentication (System allows, presently not being used)

12 Smart Ration Card Smart Ration Card has no finger prints. It stores RC number, name, member details, type of card and space to store transaction details It uses KMS under SCOSTA o/s given by NICHQ which allows verifying the genuinely of the smart card by mutually authenticating with FPS card.

13 RSBY Card RSBY cards issued in after the year Aug 2012 with PDS layout can be used as Ration Cards under COREPDS Has bio-mentrics one finger for each of the 5 family members. Bio-metric checking is being doen but not made mandatory

14 OTP authentication A mobile number should be registered with the ration card Server sends OTP to the registered mobile number at the time of service delivery

15 Aadhaar authentication COREPDS is readily scalable to Aadhaar authentication

16 Aadhaar authentication Advantages Controls 100% diversion Aadhaar seeding eliminates all fake or duplicate cards Issues Does not allow offline issues At the best scenario, there will be 1 % FRR cases Takes more than one year to take full advantage with the best efforts

17 SRC authentication Advantages Controls 90% diversion Can start within 4 months time Allows offline issues Issues Does not eliminate fake or duplicate cards SRC can be stolen or mortgaged and can be used by other than the beneficiary family

18 OTP authentication Cost effective to implement Can start within 2 months Every family does not have mobile People change SIMs very frequently Mobile is generally in the hold of male member Does not allow offline issues

19 SRC without biometrics + Aadhaar Can start within 4 months and allows smooth migration to Aadhaar based PDS Allows offline issues All issues mentioned above in different cases are addressed

20 CORE PDS- How it works

21 Every FPS has a POS device

22 Smart Ration card for a BPL beneficiary Smart card has no biometrics. Uses KMS supplied by NICHQ

23 Click to Issue PDS Commodities through SRC 23

24 24

25 25

26 Inserting Beneficiary s SRC 26

27 27

28 Click if Beneficiary Details are Correct 28

29 RC Number 29

30 RC Number Member Details Beneficiary Food Balances 30

31 31

32 Select Member Enter Quantities 32

33 Click to Issue 33

34 Transaction ID, Quantities Issued, Member ID, TransactionDate 34

35 Transaction ID, Quantities Issued, Member ID, TransactionDate Success Report 35

36 Process Success 36

37 37

38 Click to Print Receipt 38

39 39

40 COREPDS is readily scalable to Aadhaar authentication

41 Server RC Number, Member ID RC Number Name Biometric Auth Pratap Sahu N RC Number Name Aadhaar Number Pratap Sahu NA Food A/C Balances Preethi Sahu NA Shivesh Sahu NA

42 Server Member ID, RC No., Finger Print RC Number Name Biometric Auth Pratap Sahu Y RC Number Name Aadhaar Number Food A/C Balances Pratap Sahu Preethi Sahu Shivesh Sahu Y/N Aadhaar No., Finger Print

43

44 RISKS, CHALLENGES & MITIGATION STRATEGY

45 Risk 1 Implementation of CORE PDS acts against the interest of many FPS Agencies. It is not wise to assume that FPS will sincerely try to implement CORE PDS

46 Mitigation Strategy When one FPS says that the POS is not working beneficiary can go to a near by FPS. FPS that can not run COREPDS loses its business to other FPSs. FPS automation without portability as tried in some States is difficult to sustain

47 Risk 2 In the initial days, all FPSs in an area can form a nexus and see that POSs do not work.

48 Mitigation Strategy CGSCSC operates mobile FPS.

49 Mitigation Strategy Whenever a report is received that many FPSs are not working in one area, these trucks will be sent to that area. They serve the beneficiaries in front of the FPSs. Thus, FPSs who do run CORE PDS shall lose their business.

50 Risk 3 Competition does not help if everyone is bad. FPSs may intentionally do not improve their service to prove that COREPDS is a failure.

51 Mitigation Strategy Good performers NGOs, Corporates under their CSR will be introduced 50 FPS buildings under construction, each costing 10 lakhs They will set benchmark for service

52 Risk 4 Connectivity is either not available or speed is not sufficient

53 Mitigation Strategy Connectivity Survey was done. GPRS connectivity is available at all the 175 FPSs. Effective speeds vary from 20 KBPS to 70 KBPS.

54 Location of FPS in Raipur

55 Risk 5 Unreliable connectivity

56 Mitigation Strategy COREPDS by design is an online system. But it allows a limited offline issues also in case of connectivity failure ( 3 for a beneficiary and 100 for an FPS) Offline records will be uploaded whenever Smart card is inserted in a connected POS device or through FI module

57 Status COREPDS is presently operational in 565 FPSs in 11 cities and sme rural FPS benefiting 6.0 Lakh families.

58 FPS automation without portability FPS automation without portability creates more inconvenience to the genuine beneficiary

59 More inconvenience to genuine beneficiates, if no portability Without FPS automation, a beneficiary goes back, empty handed only in two cases One is 'FPS is closed second is 'stocks are not available

60 More inconvenience to genuine beneficiates, if no portability when FPS automation is done without offering portability, it adds three more cases of the beneficiary not getting her entitlements. 'POS is dysfunctional' 'no electricity for long hours and hence POS could not be charged' 'the person who operates POS is not available'.

61 Portability in Rural areas? Migrated labourers To serve small villages at door steps Social reasons

62 Benefits Reduced waiting time at FPS Reduced number of trips to FPS Behavioral change in FPS sales men Weeding out bad FPS Bribe money stopped at the root

63 Reduction in Diversion Indicator Sale of BPL Grain Sale of Kerosene Sale of APL Grain Before COREPDS After CORPDS Remark 100% 95% Prior to COREPDS, FPSs used to record proxy issues and 100% 75% 80% 50% declare 99 to 100% sale. After introduction of Smart card / OTP authentication the sale figure have reduced.

64 Freedom to chose Currently 20% of beneficiaries are using portability. Remaining beneficiaries are taking at their own FPS, but now with their choice not by compulsion. At this context I want to refer quotation which is as follows Amartya Sen s

65 From 'Development as Freedom', p 27 "A person produces the same commodities in the same way and ends up with same income and buys the same goods, she may still have very good reason to prefer the scenario of free choice over that of submission to order" Amartya Sen Winner of the nobel prize in economics

66 What kind of FPS automation? Online system, but should support a limited offline transactions Aadhaar-based Biometric authentication with alternate authentication mechanism RSBY or other Smart cards for quick start without waiting for Aadhaar saturation and to allow for offline transactions

67 What kind of PDS envisioned? Empowered beneficiary with choice of FPS, choice of commodities and choice to take cash in stead of commodities NGOs/ MNC running FPS chain treating beneficiary as a valued customer, to capture fortune at the bottom of the pyramid Mobile FPS to serve remotest villages at their door steps

68 This kind of PDS is not a distant dream with available technology and growing political and beurocratic will for improving PDS A.K.Somasekhar som@nic.in,