Centralised Online Real-time Electronic PDS CORE PDS, Chhattishgarh

COREPDS     मे�री� मेर्जी�

What was there before COREPDS?

Supply chain computerisation is operational since 2008 Unified Ration Card Database Automated Allotment Online, real-time inventory management at

warehouses SMS Alerts & Reports in public domain Call centre and Complaint Monitoring

System Increased Transparency ,Accountability, Efficiency

Situation before initiative

BPL beneficiary was getting her full entitlements in the system, But, still there were problems faced by beneficiary at FPS.

There were leakages/diversions in the system in case of APL food grain & Kerosene

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.

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.

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’

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.

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

COREPDS Objectives

To improve Service Delivery

To reduce Diversion

To empower beneficiary

To Weed out Bad FPS

To Create Transparency

CORE PDS How it works

Every FPS has a POS device

Smart Ration card for a BPL beneficiary

Smart card has no biometrics. Uses KMS supplied by NICHQ

How it works?

Beneficiary swipes the card

Smart card is authenticated

Ration Card number is sent to central server

Food Account balances details are shown in the POS

How it works?

FPS enters commodities being issued with his card swiping

The quantities are deducted from the balances on central server and success report is given to POS for further processing

SMS is given to the registered mobile (if any) with the card with the transaction details

APL Ration Cards

They are not given smart cards.

They will register mobile numbers

They take commodities using OTP

RSBY Cards to be used as Ration cards

COREPDS is designed to use RSBY Smart cards as Ration Cards by linking URN of RSBY and Ration card number.

COREPDS Application Features

Issue PDS Commodities with SRC

This is the default method of issuing PDS commodities in COREPDS. SRC is inserted in the POS device. POS authenticates SRC and sends ration card details to server to get Food A/C balances. When balances are displayed on the screen, quantities to be issued are entered and submitted to the server. Server updates the transaction and success report is sent. Receipt is printed and given to the beneficiary along with PDS commodities.

Issue with SRC

Issue PDS Commodities without SRC

There will always be a situation where a small percentage of genuine beneficiaries do not have SRCs because either they could not take in the distribution camps or they have lost and duplicate is not yet been received. This use case is to serve these genuine beneficiaries even with the risk of a few proxy issues. These beneficiaries shall not get the advantage of portability. But can take the commodities from their linked FPS.

Issue PDS Commodities with OTP Authentication

APL Beneficiaries have been registered with their mobile numbers. These beneficiaries also can go to any FPS with their registered mobile and claim their entitlements. FPS enters their ration card number and submits to the server. Server sends OTP to the registered mobile number and food a/c balances to the POS device. Beneficiaries shares OTP with FPS which will entered in POS device authenticates OTP and sends success report for further issue of PDS commodities.

Issue PDS Commodities with SRC in Offline mode

It is true that the connectivity is good in India and increasing rapidly. But it is also fact connectivity at one place is not reliable. This use case is to continue the business in case of temporary connectivity problems at FPS. The transaction is completed offline and stored in the FPS’s Smart card as well as Beneficiary’s SRC. As soon as the connectivity is available the transaction shall be updated in the server

Issue PDS Commodities with RSBY Smart Card

Government of Chhattisgarh has decided to universalize RSBY throughout Chhattisgarh. Hence department has decided to use RSBY cards as smart ration cards. This will be the first successful experiment in the country that provides for synthesis between the efforts of the two departments of the government to provide services to common beneficiaries through the same instrument. RSBY cards can also be used for biometric authentication.

Reports on POS device

Daily Transactions 

Stock Position 

Balance Query of Beneficiary 

Mini Statement of a Beneficiary

RISKS, CHALLENGES & MITIGATION STRATEGY

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

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

Risk 2

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

Mitigation Strategy

CGSCSC operates mobile FPS

.

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.

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.

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

Competition does not matter when all are bad.

NGOs, trusts and social activists may be asked to run additional FPS points (in addition to the existing) at strategic locations to introduce real competition. These shops also replenished with the PDS commodities not with the cash

- Sufficient security deposit

- Strict norms for opening timings, display board etc.

- No discrimination among beneficiaries

( Yet to be implemented)

How these new FPS improve service level?

By providing Quick service by keeping pre-weighed quantities

By using electronic weighing machines and modern measuring devices

By treating beneficiaries with dignity and respect

By providing PDS commodities after cleaning further

By offering cold water etc.

Risk 4

Distribution of smart cards could not be completed. A few people do not have smart cards

Smart cards are lost. It takes a few days to re-issue a duplicate card.

Mitigation Strategy

Issue with FPS card when Beneficiary Smart card is not available

Permanent Smart card issuing centre

Duplicate card issue commitment under citizen charter

Risk 5

Bio-metric authentication creates unnecessary harassment to 90% genuine beneficiaries to check fake issue to 10% cards

Mitigation Strategy

Bio-metric authentication is gradually introduced in CORE PDS using Aadhaar Infrastructure

Collector or his nominated person has right to exempt a beneficiary (old, handicapped etc.) from bio-metric authentication

One flag on server will decide whether Bio-metric authentication is required o not.

Risk 6

Connectivity is either not available or speed is not sufficient

Mitigation Strategy

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

Location of FPS’ in Raipur

Risk 7

Unreliable connectivity

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

Risk 8

Too much dependency on SI

Mitigation Strategy

NIC is developing all web services required

1st version of POS application has been developed by SI. SI handovered the source code to NIC

NIC has sufficient skill set for maintenance of POS software

Challenge 1

Maintenance of POS devices

225 POS devices for 175 FPS

Challenge 2

To train 175 FPS sales men To create necessary will to change To create necessary change To create necessary awareness among

beneficiaries Video CD with HCM’s message, Hon’ble

Minister’s message and instructions to operate POS device (under Development)

COREPDS Performance Indicators

Reduction in Fake Issues

Change in percentage of utilization of commodities at FPS, when compared to that of the same month of previous year and the average of 3 months prior to COREPDS, shall be calculated which can be used to find out the actual savings due to implementation of COREPDS.

+ve indicator

Measurement of Portability

Churning Effect The % of beneficiaries taken commodities from

other than attached FPSs in the total beneficiaries taken commodities in that month will be calculated.

+ve indicator

Measurement of Portability

Weeding Out Bad FPSs:

% of FPSs that have served less than 75% of attached beneficiaries in total number of FPS in COREPDS shall be measured. When some FPSs lose their business due to this portability then only we can conclude that beneficiaries are getting better service and bad performers are being punished.

+ve indicator

Measurement of improvement in service delivery

% of people getting all commodities at one time:It is an observation that beneficiaries have to visit multiple times to get different commodities in the present system of PDS. It is an obvious improvement in service delivery if beneficiary can get all the commodities (except Kerosene) at one time, saving in multiple trips and associated cost and time. Kerosene is neither sold nor preferred to be bought along with food grain commodities because of its smell.

+ve indicator

Annual Customer Satisfaction Survey

An Annual survey will be conducted to take feedback from at least 1% of beneficiaries in COREPDS and the customer satisfaction indicator will be calculated.

Stake Holder – Department of Food

Responsibilities Performance Indicators

• Policy making• Introduction of good

performers• Smart card Distribution• FPS Inspection

•Number of FPSs sponsored

•Number of Inspections taken

•% of Smart cards distributed in total cards created

•% of signed FPS declarations uploaded (monthly)

Stake Holder – CGSCSC

Responsibilities Performance Indicators

•Delivery of PDS commodities to FPS

•Operation of mobile FPS

•Number of FPSs - Days with zero stocks of any commodity

(-ve Indicator)

•Number of Beneficiaries benefitted through mobile FPSs

Stake Holder – NIC

Responsibilities Performance Indicators

•Providing technology solutions

•COREPDS technology maintenance

•Capacity building

•Addressing day to day technical problems

•Server Up time Percentage – 95% of server up time is SLA

•% of offline transactions in the total transactions

(-ve Indicator)

•Number of Hours of training

•Number of FPS visits

Stake Holder – Fair Price Shop

Responsibilities Performance Indicators

•To sell PDS commodities to any valid PDS beneficiary of COREPDS ensuring dignity and convenience of the beneficiary

•To submit signed declaration in time

•To deposit money with CGSCSC in time

•The % of net addition of beneficiaries over the total beneficiaries attached to that FPS who received PDS commodities from any FPS

Stake Holder – Beneficiary

Responsibilities Performance Indicators

•To keep watch of operations of PDS

•Smiling face of beneficiary is the ultimate +ve performance indicator of the system

•Beneficiary performance shall not be monitored

Benefits realised

Reduced waiting time for service delivery

Due to equal distribution of beneficiaries in all nearby FPS’ the average waiting time has reduced to half an hour from 2 to 3 hours before implementation of COREPDS

Reduction in diversion

Mechanical authentication at the time of delivery completely checks the record of proxy issues and thus reduced diversion

Behavioral change in behavior of FPS personnel

The portability offered in COREPDS creates fear of losing customers which brought a drastic change in behavior of FPS personnel while dealing with the beneficiary

Reduced number of trips of beneficiaries to take different commodities

In COREPDS, a beneficiary is able to get all the commodities at one time. Even when one commodity is not available in an FPS the beneficiary can take the same from nearby FPS. This has lead to a drastic reduction in the number of trips of the beneficiary to take commodities to 2 trips

Bribe money stopped at the root:

As FPS in COREPDS can’t record proxy issues and hence it cannot black market any commodities. When the FPS does not get any illegal money it cannot pump the money upward in the chain.

Quantitative Indictors of Outcome

Reduction in Diversion (Aug 31st, 2012)

Indicator Before COREPDS

After CORPDS

Remark

Sale of BPL Grain

100% 95% Prior to COREPDS, FPSs used to record proxy issues and declare 99 to 100% sale. After introduction of Smart card / OTP authentication the sale figure have reduced.

Sale of Kerosene

100% 75%

Sale of APL Grain

80% 50%

Improvement in Service Delivery

Indicator Before COREPDS

After CORPDS

Remark

Churning Effect: The % of beneficiaries taken from the FPS other than the attached

0 14.3% There used to be the beneficiaries, which were forced to take rations from their fixed shop prior to COREPDS. They have moved to other shops. This is a direct indicator of improved service delivery.

% of FPS lost more than 25% of their business

0 18 %

Average number of trips to FPS to take different commodities

4 to 5 1.8

Freedom to chose

Currently 14% 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 Amartya Sen’s quotation which is as follows

From 'Development as Freedom', p 27

"A person produces the same commodities in the same ay 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 noble prize in economics

The road a head

Rollout of COREPDS in

Rajnandgaon & Durg cities 01.11.2012

Bilaspur & Bhilai ciries 01.01.2013

All the remaining 6 cities 01.04.2013

Through the State 31.03.2015

COREPDS shall revolutionize the way PDS operates today

Thank you

iamvikassheel@gmail.com

som@nic.in