Govt Approves ₹25,530-Crore AI Overhaul of Public Distribution System Through Sarthak-PDS

The Union Cabinet on Wednesday approved a ₹25,530 crore extension of the Scheme for Assistance in Ration Transport and Handling-Income with Automation in PDS (Sarthak-PDS) for five years from April 2026 to March 2031. The initiative aims to modernize the country’s Public Distribution System, which provides subsidized food grains to around 80 crore citizens every month through fair price shops. Union Minister Ashwini Vaishnaw described the move as a major structural reform covering logistics, transportation, material handling, and grievance redressal for beneficiaries.

Under the upgraded SMART PDS Phase 2, the government will introduce three AI-enabled systems with support from the India AI Mission. The NIRMAL system will create a real-time AI-based registry of PDS beneficiaries and enable seamless integration with other government schemes. This is expected to improve accuracy in beneficiary identification and reduce leakages in the distribution network significantly.

The ASHA platform will function as a multilingual AI grievance redressal system, allowing citizens to register complaints via calls, WhatsApp, IVRS, and chatbots. It is designed to handle up to three lakh interactions daily, a substantial increase from the current two lakh calls processed monthly. This upgrade is intended to make the system more responsive and accessible to beneficiaries across the country.

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The third system, SAKSHAM, will leverage AI for efficient supply chain management, including vehicle tracking, QR-code-based tracing of food grain bags, demand forecasting, and route optimization. Officials claim these measures could reduce food grain transport distances by 15 to 50 percent, promote local procurement, and generate annual savings of around ₹280 crore while cutting carbon emissions by 35 percent.

Minister Vaishnaw emphasized that the PDS is a vital tool for inclusive growth, poverty reduction, and addressing malnutrition in India. The reforms seek to strengthen this welfare mechanism by bringing in advanced technology for better transparency and efficiency in ration delivery and complaint handling.

The approval reflects the government’s focus on technology-driven governance to enhance the delivery of essential services. As implementation begins, states will receive financial assistance for intrastate movement of food grains, support for fair price shops, and broader modernization efforts under the extended scheme.

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