It is incorrect to say that the Hon’ble Lt. Governor has rejected proposal for the doorstep delivery of ration.

Home/ In Media/ Press Release/ It Is Incorrect To Say That The Hon’ble Lt. Governor Has Rejected Proposal For The Doorstep Delivery of Ration.
31-03-2018

It is incorrect to say that the Hon’ble Lt. Governor has rejected proposal for the doorstep delivery of ration.
An efficient public distribution system would ensure that while no eligible beneficiary is denied his/her quota of ration, at the same time, no ineligible person could misuse the facility: LG
Finance Department has noted that savings from adoption of Direct Benefit Transfer (DBT), beneficiaries can procure an additional 5 kg of Atta per family per month.
Earlier, the Delhi Government was very keen to implement technology to curb corruption in PDS. Now suddenly, a proposal received to suspend the operation of e-PoS devices. Such abrupt policy change, lowers the credibility of the entire decision making process : LG
Earlier scheme of fortified whole wheat atta implemented during 2012-13 b ut results were not encouraging. No reasons for failure of the earlier scheme or lessons learnt placed on record. It is not clear how the present proposal would improve upon the previous experiment : LG
Use of e-PoS devices facilitates portability i.e. the beneficiaries can choose to lift ration from any FPS of his/ her choice. This promotes competition and empowers the beneficiaries/ consumers : LG
Lt. Governor advises that the decision to suspend the operation of e-PoS devices be reconsidered.
Lt. Governor advises that the proposal of home delivery of ration under TPDS be referred to Government of India with full details including all implementation issues, before a final decision is taken.

It is incorrect to say that the Hon’ble Lt Governor has rejected proposal for doorstep delivery of ration. Following are the details.

Regarding home delivery of ration, Hon’ble Lt. Governor has stated that an efficient public distribution system would ensure that while no eligible beneficiary is denied his/her quota of ration, at the same time, no ineligible person can misuse the facility. There should not be any diversion of food grains meant for the needy & the poor and the entire system should function in the most efficient, cost-effective and transparent manner.

In the departmental file, Finance Department has observed that the proposed system of home delivery of ration will only replace one set of human intervention with other i.e. service providers and their agents. Hence, diversion of ration materials and corruption may not be eliminated under the proposed scheme. The best option would be adoption of the Direct Benefit Transfer (DBT), where the money would directly be transferred to the bank account of the beneficiary, thus totally eliminating middlemen. The Finance Department has also noted that an expenditure of about Rs. 250 Crores per annum is likely to be incurred on the home delivery scheme, and if DBT is adopted, the beneficiaries can procure an additional 5 kg of Atta per family per month, with the money so saved. The Finance Department has also raised the issue of managing the existing contract of PoS devices with BEL because there are commitments on account of rental charges payable in respect of PoS machines, weighing scales and iris devices. Hon’ble Governor has noted that the observations of Finance Department are worth considering.

Hon’ble Lt. Governor also observed that the Cabinet Note mentions that GNCTD and some States had distributed fortified whole wheat atta during 2012-13, but results were not encouraging. No reasons for failure of the earlier scheme or lessons learnt were placed on record and as such, it is not clear how the present proposal would improve upon the previous experiment. While making such a big change in a critical sector that directly impacts the weakest sections of society, it would be expected that all due diligence is carried out.

Further, the letter dated 01.02.2018 of Government of India provides for ‘home delivery’ as one of the two options, only as a special dispensation for a category of beneficiaries who are above 65 years of age or are differently-abled, have no other adult family member listed in the ration card and are not in a position to visit the Fair Price Shop themselves.

It is noteworthy that in Targeted Public Distribution Scheme (TPDS), the Central Government plays a major role in implementation including procurement, storage, distribution and bulk allocation of foodgrains. The entire TPDS is being implemented under the National Food Security Act, 2013. The Law Department has also pointed out that introduction of proposed scheme would require prior approval of Central Government under Section 12(2)(h) of the said Act. Moreover, the Cabinet Note, in its SWOT analysis of the proposal, brings out several potential threats and weaknesses. The department has also noted that the introduction of scheme has potential operational and implementation risks and it should be implemented initially on pilot basis.

As such, Hon’ble Lt. Governor advised that the proposal of home delivery of ration under TPDS may be referred to Government of India with full details including all implementation issues, before a final decision is taken. Therefore, it is incorrect to say that the Hon’ble LG has rejected the proposal for home delivery of ration under TPDS.

On the proposal to suspend operation of e-PoS devices in FPSs, Lt. Governor noted that introduction of e-PoS devices to ensure end-to-end computerization of Targeted Public Distribution System (TPDS) is a national level reform in order to plug leakages and bring about transparency.

Lt. Governor recalled that the Food & Civil Supplies Department has been able to install e-PoS devices with great difficulty. In fact, Hon’ble Minister for Consumer Affairs, Food & Public Distribution, Govt. of India had noted that the progress of TPDS reforms in the UT of Delhi had dwindled since 2015-16 and no significant headway had been made with respect to installation and operationalization of e-PoS devices.

The Cabinet of GNCTD too vide decision dated 20.06.2017 had noted that the Delhi Government is very keen to implement technology to curb corruption in PDS. The Cabinet had also expressed its annoyance at the delay. Further, vide another Cabinet Decision dated 23.01.2018, the margin money of FPS was enhanced to almost three times (Rs. 70/- to Rs. 200/- per quintal) for food grain delivery through e-PoS to mitigate issues of diversion of foodgrains and pilferage. The Cabinet proposal of ‘home delivery’ of rations envisages verification of beneficiaries through Aadhar authentication using same e-PoS devices. Now a proposal has been received from the Hon’ble Minister to suspend the operation of e-PoS devices. Hon’ble LG noted that such abrupt policy change lowers the credibility of the decision making process.

Lt. Governor also noted the department’s contention that 98% and 98.75% of ration in January and February, 2018 respectively were distributed online through e-PoS devices in all 2254 Fair Price Shops. In fact, the department has stated that the operation of e-PoS devices has now entered into a crucial stage to weed out around 15-20% ineligible card holders from the system which is going to save around 16% ration. The ration so saved can be utilized for distribution to the needy persons who are in the queue. The use of e-PoS devices also facilitates portability i.e. the beneficiaries can choose to lift ration from an FPS of his/ her choice. This promotes competition and empowers the beneficiaries/ consumers.

Hon’ble Lt. Governor observed that no hasty decision should be taken and all issues raised should be thoroughly looked into by the department. At the same time, the fact that the Department has raised the possibility of lakhs of ineligible persons being currently enrolled in the TPDS also cannot be ignored. Therefore, Hon’ble LG advised that the Department should thoroughly check as to why a large number of beneficiaries did not collect ration through e-PoS devices. In case any of the enrolled beneficiary is found to be ineligible after following due process as per relevant guidelines/ rules and as has been done in the past as well, action should be taken for removal of his/her name and inclusion of eligible beneficiaries in the queue in a transparent manner. In case, present system of e-PoS requires corrective steps, same should be taken.

Hon’ble Lt. Governor also mentioned that since introduction of e-PoS devices is a national level reform, it would also be useful to consult the Central Government to understand from experiences of other States/ UTs, if any problems were faced initially in the implementation of e-PoS and how these were resolved.

Finally, Lt. Governor reiterated that he totally shared the sentiments of Hon’ble Minister that even if one poor family gets denied its quota of ration, it is a great human tragedy. Lt. Governor further stated that no eligible beneficiary should be denied his/her entitlement of foodgrains, at the same time, no ineligible beneficiary should be allowed to avail the benefits which are intended for the poor and the needy. As such, he advised that the Cabinet Decision to suspend the operation of e-PoS devices be reconsidered and action, as suggested must be first taken.

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