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Cabinet clears tech-driven overhaul of PDS; extends SARTHAK Scheme with ₹25,530 crore outlay
2026-05-27 · via Business News Today: Latest Business News, Finance News
Union Minister Ashwini Vaishnaw at a Cabinet briefing, in New Delhi on Wednesday.

Union Minister Ashwini Vaishnaw at a Cabinet briefing, in New Delhi on Wednesday. | Photo Credit: ANI

In a move aimed at turning the country’s vast ration distribution network into a technology-driven welfare platform, the Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved continuation of the SARTHAK-PDS scheme for another five years with a central outlay of ₹25,530 crore.

The revamped scheme seeks to modernise the public distribution system (PDS) by bringing together foodgrain logistics, beneficiary management and grievance redressal on a single digital architecture, while also easing the financial burden on States for transporting grains to ration shops.

Information and Broadcasting Minister Ashwini Vaishnaw said the scheme covers the entire supply chain, from identification of beneficiaries and movement of foodgrains to citizen feedback mechanisms and reduction in transportation delays. The scheme will run till March 31, 2030.

Modernisation push

SARTHAK-PDS merges two existing programmes — financial support for intra-State movement of foodgrains and fair price shop dealer (FPS) margins under the National Food Security Act (NFSA) and the technology-focused SMART-PDS initiative — into a single umbrella framework intended to streamline implementation and improve accountability.

The modernisation push forms the centrepiece of the new scheme. The government plans to deploy AI, machine learning, Natural Language Processing and blockchain-based systems to make ration delivery more transparent, traceable and responsive.

Among the key features proposed are unified national databases, AI-enabled analytics dashboards, automated grievance redressal systems and State Command and Control Centres to monitor distribution networks in real time. The government also plans to introduce standardised digital processes and ISO-certified operational protocols to improve transparency and ensure continuity of services.

According to a government statement, the scheme carries a dual mandate: providing assured financial support for intra-state movement, handling and FPS dealers’ margins on one hand, and building a unified, citizen-centric and interoperable PDS architecture on the other, aimed at ensuring last-mile service delivery while minimising leakages.

Published on May 27, 2026