study of pds system in himachal pradesh a project report

1. AUTOMATION
OF
PUBLIC DISTRIBUTION SYSTEM
IN
HIMACHAL PRADESH
A SYSTEM ANALYSIS AND DESIGN PROJECT
Submitted in partial fulfillment of the
requirements for the award of the degree
of
BACHELOR OF TECHNOLOGY (INFORMATION TECHNOLOGY)
BY
Nikhil Aggarwal (978)
Vikram Thakur (979)
Varun Vir Pathania (986)
Abhinav Sharma (987)
UNIVERSITY INSTITUTE OF INFORMATION TECHNOLOGY
HIMACHAL PRADESH UNIVERSITY
SUMMER HILL SHIMLA
June , 2011
1

2. CANDIDATE DECLARATION
We hereby declare that the work which is presented in the project report entitled
―AUTOMATED PUBLIC DISTRIBUTION SYSTEM IN HIMACHAL PRADESH‖ in
partial fulfillment of the requirement for the award of degree of BACHELOR OF
TECHNOLOGY in ―INFORMATION TECHNOLOGY‖ submitted in University Institute
Of Technology Shimla, is an authentic record of our own work carried out during the
period from Aril 2011 to June 2011 under the supervision of Er. Balvir Thakur. The
matter embodied in the project report has not been submitted by us for the award of
another degree.
Date:
Place:
This is certified that the above statement made by the candidate is correct to best of
my knowledge.
Er. Balvir Thakur
University Institute of Information Technology
Shimla-05.
2

3. ACKNOWLEDGEMENT
We would like to place on record our deep sense of gratitude to Dr. Raman Sharma ,
Director , UNIVERSITY INSTITUTE OF INFORMATION TECHNOLOGY , HIMACHAL
PRADESH UNIVERSITY for his generous guidance , help and useful suggestions.
We express our sincere gratitude to Er. Balvir Thakur , UNIVERSITY INSTITUTE OF
INFORMATION TECHNOLOGY , HIMACHAL PRADESH UNIVERSITY for their
stimulating guidance , continuous encouragement and supervision throughout the
course of the present work and providing us with the infrastructure facilities to work on
, without which the work would not have been possible.
Nikhil Aggarwal
Vikram Thakur
Varun Vir Pathania
Abhinav Sharma
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4. PREFACE
The project titled “Automation Of Public Distribution System In Himachal Pradesh” is
motivated by the idea to bring transparency in the system of public distribution to the
beneficiaries.
The project study has been done according to the steps of system
development life cycle namely recognition of need, feasibility study, analysis and
design. The current system involves manual monitoring of the PDS system which
includes maintenance of record of allocation and distribution of subsidized goods to
the beneficiaries. The system has loopholes and can be manipulated to bring benefit
to the favored individuals.
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5. CONTENTS
CHAPTER TITLE Page No.
CANDIDATE’S DECLARATION 2
ACKLMOWLDEGEMENT 3
PREFACE 4
CONTENTS 5
LIST OF TABLES 5
LIST OF FIGURES 6
OBJECTIVE OF STUDY 8
SCOPE 8
1.0
1.1 General 10
1.2 System Overview 13
2.0 RECOGNITION OF NEED
2.1 Current System 14
2.1.1 Limitations Of Current System 15
2.1.2 Information Gathering 17
2.1.2.1 Questionnaires 19
2.1.2.2 On Site Observation / Interview 21
3.0 INTRODUCTION TO PROPOSED IT BASED SYSTEM 25
4.0 4.1 Existing system of Ration Card Submission 27
4.2 New Proposed Online Submission Of Ration Cards 31
5.0 RATION CARD DATABASE 34
6.0 SMART CARD 35
7.0 PONT OF SALE (POS) DEVICE 36
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6. 8.0 BENEFITS FROM UID 37
9.0 FEASIBILITY STUDY OF PROPOSED SYSTEM
9.1 Economical Feasibility 39
9.2 Technical Feasibility 40
9.3 Behavioral Feasibility 40
10.0 DATA FLOW DIAGRAMS 41
11.0 NETWORK DIAGRAMS FOR PDS 43
12.0 FLOW CHART OF PROPOSED SYSTEM 46
13.0 DATABASE DESIGN 48
14.0 ENTITY-RELATIONSHIP MODEL 52
15.0 CONCLUSION 54
16.0 SCOPE FOR FUTURE STUDY 55
REFERENCES 56
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7. LIST OF TABLES
TABLE No. DESCRIPTION PAGE No.
1. STOCK MAINTENANCE (FOR FAIR PRICE 48
SHOP)
2. USER IDENTIFICATION 48
3. CATEGORIZATION OF USERS 48
4. ALLOCATION TABLE CORRESPONDING TO 49
CATEGORY
5. BILLING TABLE 50
LIST OF FIGURES
FIGURE DESCRIPTION PAGE No.
No.
1. PDS SYSTEM OVERVIEW 13
2. BILL RECEIPT GIVEN TO A RATION CARD HOLDER 22
IN CURRENT SYSTEM
3 - 6. SHOWING LAG IN UPDATION OF ALLOCATION 22-24
DETAILS TO FPS IN CURRENT SYSTEM OF PDS IN
HIMACHAL PRADESH
7. FLOW CHART FOR ONLINE SUBLISSION OF 31
RATION/SMART CARD
7

8. 8. DEPICTING FORMS FOR ONLINE SUBMISSION OF 33
RATION/SMARTCARD[DESIGNED IN VISUAL BASIC
9. REPRESENTING A POINT OF SALE (POS) DEVICE 36
10. DATA FLOW DIAGRAM LEVEL-0 (CONTEXT 41
DIAGRAM)
11. DATA FLOW DIAGRAM LEVEL-1 42
12. NETWORK DIAGRAM FOR MONITORING OF PDS 43
13. SYSTEM CONCEPT DIAGRAM 44
14. LINK BETWEEN FPS AND GODOWN 44
15. FPS SMART CARD CREATION FLOW 45
16. FLOW DIAGRAM OF PROPOSED SYSTEM 46
17. LINK BETWEEN TABLE 3, 4 AND 5 51
18. ENTITY RELATIONSHIP DIAGRAM 53
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9. OBJECTIVES OF THE STUDY
The objectives of the present study are:
 To study the problems relating to the implementations of current PDS.
 To study the benefits derived out of PDS to the beneficiary.
 To offer suggestions to improve the working of PDS by adopting automation of
PDS.
SCOPE
The proposed project can be implemented at the bottom level of PDS
network that is at one Fair Price Shop (FPS). After optimized evaluation it
can be implemented to larger areas extending to each tehsil, block, district
in the later phases.
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10. INTRODUCTION
India’s Public Distribution System (PDS) with a network of 4.78 Lakh Fair Price Shops
(FPS) is perhaps the largest retail system of its type in the world. Since 1951 public
distribution of food grains has been retained as deliberate social policy by India with
the objectives of:
(i) Providing food grains and other essential items to vulnerable sections of the society
at reasonable (subsidized) prices
(ii) To put an indirect check on the open market prices of various items and
(iii) To attempt socialization in the matter of distribution of essential commodities
PDS is an important constituent of the strategy for poverty eradication and is intended
to serve as a safety net for the poor whose number is more than 33 Crores and are
nutritionally at risk. PDS is operated under the joint responsibility of the Central and
the State Governments. The Central Government has taken the responsibility for
procurement, storage, transportation and bulk allocation of food grains, etc.
The operational details of the PDS differ from state to state. Though the policy of
setting up of FPSs owes its initiation to national food policy, its implementation
remains the direct responsibility of the state governments. The operational
responsibilities including allocation within the State, identification of families below
poverty line, issue of ration cards, supervision and monitoring the functioning of FPSs
rest with the State Governments. The Food and Civil Supplies Department of the State
Government is mainly entrusted with the task of monitoring PDS in the state.
According to world bank report in India [ 1] the poorest sections and Scheduled Tribes
have been the worst hit, with 53.6 per cent and 52.7 per cent, respectively, saying they
could not access ration cards because of red-tapism, says the report, ―Social
Protection for a Changing India'.
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11. Food Subsidy:
Food Subsidy is provided in the budget of the Department of Food and Public
Distribution to meet the difference between the economic cost of food grains and their
sales realization at Central Issue Prices for TPDS (Targeted PDS) and other welfare
schemes. In addition, the Central Government also procures food grains for meeting
the requirements of buffer stock.
Hence, part of the food subsidy also goes towards meeting the carrying cost of buffer
stock.
The subsidy is provided to FCI under TPDS and other welfare schemes and for
maintaining the buffer stock of food grains as measure of food security.
The quantum of food subsidy depends on the level of procurement of food grains and
off take under TPDS and other welfare schemes.
The budgetary estimate for food subsidy during 2008-09 was about Rs. 37,000
Crores.
PDS System Today:
The TPDS system today supports over 40 Crore Indians below the poverty line with
monthly supply of subsidized food grains. The system also provides gainful
employment for 4.78 Lakh Fair Price Shops Owners, their employees and hired labour
who work at the FCI and state warehousing godowns.
PDS also has become a cornerstone of government development policy and is tied to
implementation of most rural development programs. PDS is also a key driver of public
sentiment and is an important and very visible metric of government performance.
The Planning Commission had the following to say on the PDS system in its 2005
report.
“For every Rs 4 spent on the PDS, only Rs 1 reaches the poor”
“57% of the PDS food grain does not reach the intended people ”
Recently National Advisory Council (NAC) has cleared the draft National Food Security
Bill 2011, which guarantees subsidized food grains to at least 90 percent of rural
households and 50 percent urban households. The food bill, the most envisages
two types of households as eligible for discounted grain—―priority households,‖ which
includes those below the poverty line (BPL) and ―general house group‖ comprising
lower middle class families. The bill has categorized 46 percent rural and 28 percent
urban households under ―priority group‖ entitled to receive food grains (7kg per head)
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12. at Rs. three, two and one for wheat/rice/millets, respectively. In addition, 49 percent
rural and 22 percent urban households, categorized as ―general group‖, are entitled to
receive food grains (4 kg per head) at not more than 50 percent of the MSP of the
respective food grain. The draft bill follows a life cycle approach and introduces a
number of other universal guarantees, including nutrition support to children, destitute
feeding and affordable meals for homeless and other needy urban populations ; and
special guarantees for starvation and emergency. It also creates accountability
framework for protection of these entitlements and allows imposition of fines on
defaulters and compensation to the victim and thus envisages a strong grievances
redress and monitoring system from centre to the block level [2].
In this project report, we have tried to cover all this so that the PDS system should be
transparent and optimized one.
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13. SYSTEM OVERVIEW
FARMERS
CENTRAL GOVERNMENT
STATE GOVERNMENT
DISTRICT ADMINISTRATION
BLOCK ADMINISTRATION
GODOWNS
FAIR PRICE SHOPS
BENEFICIARY
FIGURE: 1 [ PDS FLOW ]
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14. RECOGNITION OF NEED
CURRENT SYSTEM:
In the present Public Distribution System, paper ration card are issued to eligible
families. Commodities like wheat, sugar, rice and kerosene oil etc. are being offered at
subsidized prices as per the eligibility recorded in the ration card. The record of
eligibility and transactions is maintained manually both in the ration cards and the
register maintained in the Fair Price Shop (FPS).
Food grains are transferred from Food corporation Of India (FCI) store to states and
then to region levels. The following steps have been integrated to cover the complete
food chain [3] :
 State wise allocation of food grains by Central Government.
 District wise allocation of food grains by State Government.
 Block wise allocation of food grains by District Administration.
 Storage of food grains in godowns.
 Off take of food grains against allocation.
 Distribution of food grains to the Fair Price Shops.
 Sale to the beneficiary.
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15. LIMITATIONS/CHALLENGES OF CURRENT SYSTEM
 The most serious flaw regarding the system at present is the lack of
transparency and accountability in their functioning.
 There is a huge diversion of commodities from the PDS due to misuse and
duplication of ration cards. According to some estimates around 30% of the food
grains and other commodities allocated for poor families do not reach them.
 According to 2010 report by a Supreme Court Committee headed by former
Justice D.P. Wadhwa, India has 23 million ―ghost ration cards‖ in fictitious
names and around 121 million deserving poor deprived of subsidized food. Each
fake card guzzles Rs. 8200 of the annual subsidy.
 A large number of families living below the poverty line have not been enrolled
and therefore do not have accessed to the ration card.
 A number of instances where benefits are being availed in the names of
rightfully entitled families without their knowledge. This shadow ownership is
possible due to inefficiency in ration card issuance, distribution and record
keeping.
 Many FPS are opened only for a few days and hence people are denied their
rights.
 There is a significant differences in the manner in which the Central and State
governments arrive at the number of BPL families. This difference usually
means mismatch in number of allotments.
 It is estimated that 25% diversion that takes place before the ration reaches to
the beneficiary.
 Error in categorization that lead to the APL families getting BPL cards and vice
versa.
 A significant portion of benefits provided to the APL category, are not availed by
the intended beneficiaries and are instead diverted out of the system.
 No biometric identification for the users.
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16.  Pilferage – PDS food grains find way to the market and all the allot do not reach
the eligible person.
 There is no central monitoring system to track the carriage trucks.
 The entire delivery mechanism has no RFID (Radio Frequency Identification
Device).
In summary, targeting is not serving its real purposes, as the beneficiaries do not get
food grains in accordance with their entitlements. There is a need for foolproof
monitoring system from central store to Fair Price Shop covering transactions at all
levels and transport.
16

17. INFORMATION GATHERING
Questionnaire:
1. Have you heard about Public Distribution System? Yes / No
2. Are you a ration card holder? Yes / No
3. Which category of Ration Card Holder do you fall under ?
APL/BPL/AAY
4. Do you Regularly buy subsidized food commodities from the Fair Price Shops ?
Yes / No
5. Do you Buy all the available commodities ? Yes / No
If No, which commodities of the following do you prefer to buy ?
i. Rice Grains
ii. Pulses
iii. Sugar
iv. Cooking Oil
v. Kerosene Oil
vi. Wheat
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18. 6. Are you aware of the maximum quantity of a particular
item you can purchase?
Yes / No
7. Have you heard about any corruption in the PDS ? Yes / No
8. Do you think the PDS system in India needs changes?
Yes / No
18

19. RESULTS
1. Are you a Ration Card Holder ?
No. of Card Holders
Yes-89% No-11%
2. Do you regularly claims the subsidized goods from your FPS?
Yes-22% No-78%
19

20. 3. Does the PDS in India require changes?
Yes-87% No-13%
20

21. ON SITE OBSERVATION / INTERVIEW
Interaction with a Fair Price Shop Owner Mr. Naresh Gupta who owns a depot at
Rajgarh Road, Solan was conducted. We observed that the commodities were
transferred to him from the local godown of the Civil Supplies Corporation .This
allocation is done according to the number of ration cards that are enrolled with each
FPS.
The FPS issues the goods to the dealer as per the type and number of people
mentioned in their respective Ration Cards. The three main categories of Ration Cards
are Above Poverty Line (APL) , Below Poverty Line (BPL) , Antodaya (AAY).Each FPS
maintains a bill book into which the Bills of every PDS sale is made.
At the end of the month, this records are forwarded to the Civil Supplies Deptt. which
in turns maintains manual records of the distribution done to the people. Subsequent
stocks that are left over at any FPS are carried forward to the next month. In the next
month , the same FPS receives lesser quantity. In this way, Only manual records are
maintained but not computerized ones until recently. This results in significant gaps in
the updating of stock status on the government website.
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22. FIGURE: 2 [ BILL RECEIPT ]
FIGURE: 3 [e-HIMAPURTI HOME PAGE ]
22

23. FIGURE: 4 [e-HIMAPURTI MONTHLY INFORMATION OF FPS ]
FIGURE: 5 [e-HIMAPURTI MONTHLY CONSOLIDATED SALES AND ALLOCATION ]
23

24. FIGURE: 6 [e-HIMAPURTI NO INFORMATION AVAILABLE ]
On visiting the official website of Deptt. Of Food &Civil Supplies , Govt. of Himachal
Pradesh ,it was observed that there was a lag of about 6 months In the updating of
details of sale and stocks at each FPS in the state.
24

25. PROPOSED I.T. BASED SOLUTION SYSTEM
A significant part of the challenge in the PDS emanates from bogus and shadow ration
cards if the bogus cards can be weeded out and a mechanism put in place to
positively confirm and track the individual take off on the monthly basis, the problems
related to PDS leakages, Transparency and Transportation would get resolved.
The proposed is aimed at checking leakages, curbing corruption and ensuring need
based allocation in the Public Distribution System.
Earlier attempts at addressing the challenges have focused on identifying the
―Physical Theft‖ and used tools like human monitoring. All these tools are easily by-
passable and even if they work efficiently cannot address PDS leakages.
A solution that improves the quality of the beneficiary database and can track
individual off take coupled with the computerized MIS system can effectively improves
PDS.
A database record of all the beneficiaries and allow fare distribution of commodities,
identification and verification of the right person through a secured mechanism. All the
personal details, daily transactions and details of the record will be kept and also
transferred in a secure manner to the main branch by ICT intervention.
AIMS OF THE PROPOSED SYSTEM] :
 Create transparency in operations so that every citizen can very easily
know what is happening and what is supposed to happen.
Transparency is the basic requirement to check corruption. Without providing
adequate transparency no controls or inspections can reduce corruption.
25

26. Transparency [4] will be created by computerizing all operations and
providing all information on the web and some vital information through SMS.
 Provide most convenient way to give feed back or lodge complaints for the
citizens.
When an ordinary citizen found some corruption in the system, there should
be a way out to make a complaint or give a suggestion to the authorities. The
system to lodge the complaint should be as easy as possible so that anyone
can use it without any effort. Most of the people will not be ready to spent
time and money to lodge complaints. Even if they find corruption in the
Public Distribution System.
Call centre with the toll free number can be provided and is a convenient way
to lodge a complaint.
 Build confidence in the public that complaints lodge through the system will
be attended to. If the complaints lodged through the system are unattended
citizens slowly loose confidence in the system and stop using the same.
26

27. EXISTING SYSTEM OF RATION CARD SUBMISSION [5] :
Sl. No……………………
„FORM-F‟
[See clause 10(1)]
FOOD, CIVIL SUPPLIES & CONSUMER AFFAIRS DEPARTMENT
GOVERNMENT OF HIMACHAL PRADESH
Application for Consumer Card :
1.City/Town/Village/Panchayat………………………………………………………………
……………………………………
2.Whether new or duplicate with
reasons……………………………………………………………
3. Name of house-
owner…………………………………………………………………………
4. Name of the House (with house No.)
………………………………………………………………………………
5. Name of the applicant………………………
Father/Husband………………………………………………
6. Full address with occupation &
designation……………………………………………………………………………
7. Date/reason of arrival of in the distribution
area……………………………………………………………………
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28. 8. Total monthly income of family from all
sources……………………………………………………………………
(with allowances for employees of the Govt./Semi-Govt.
Departments/Corporations, Boards etc.)
9. Gas connections : Yes/No. Consumer
No……………………………………………………… DBC: Yes/No
10. Particulars of family members for which consumer card is required:-
Receipt of the application form
Serial No………………………
Name of the applicant ………………….………………………………
This acknowledgment should be produced on …………………………….at
……………………………………………
when distribution card will be issued if the application is found in order.
Date……………………………
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29. 11. I do hereby solemnly affirm and state that :
(a) the information given in this form is true ;
(b) Name of the persons mentioned in para-10 are in receipt of the ration from Army,
neither names of these persons are entered in any consumer card in India ;
(c) None of the person mentioned in para -10 are in receipt of regular diet from any
Hostel/ Boarding House neither their names are entered in the ration cards issued for
the
Boarding House/Hostel. Myself or my family members have a gas connection
No.………………..Single/Double Cylinder.
Signature/Thumb impression of
the applicant along with date
12. The applicant is the head of family and I know him personally ;
I hereby certify that the information given above is correct;
Signature of the Certifying /
attesting Officer along with
designation with seal
INSTRUCTIONS FOR FILLING IN THE APPLICATION
(i) The application should be filled in neatly while applying for a new distribution card.
(ii) The persons coming from other state / city / town / village, should attach cacellation
/
migration certificate issued by the previous card issuing authority.
(iii) If the applicant is a Government servant, he should get the application certified by
the
Head of the office. If the person is not a Government servant, he should get his
application attested by a Muncipal Comissioner or a Gazetted Officer in the town or
any
other class of persons specially or generally authorized by the Government.
……………………………………………………………………………………………………
……………………………………………………
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30. FOR OFFICE USE ONLY
Enquiry report of the officer / official :-
Enquiry was conducted on the address given by the applicant in para -10 today and
the facts
mentioned in the application form have been found to be correct.
Adults Children Infants Total Members
Signature of the Enquiry Officer with Seal
(Inspector, Food, Civil Supplies & Consumer
Affairs/Gram Panchayat Vikas Adhikari).
Date…………………………………………
Code No. of the Consumer Card……………………………… Serial
No……………………………………………………
Dated……………………… Signature of card preparing Officer/Official.
30

31. NEW PROPOSED ONLINE SUBMISSION OF RATION CARDS
START
UID DATABASE ONLINE SUBMISSION OF
DATA
NO
VERIFY
PAN No.
NO
DATABASE
YES
PANCHAYAT
FAMILY
PAYMENT NO
REGISTER
YES
GENERATE RECEIPT
GENERATE PDS CARD No.
GET CARD FROM PANCHAYAT
END
FIGURE: 7
31

32. ONLINE SUBMISSION OF DATA
32

33. FIGURE: 8
33

34. RATION CARD DATABASE
The data will be available in a database which is a base for the computerization of
PDS. The data will be made accessible to public on web. Public will be able to access
the following:
 Village-wise, ward-wise or FPS Fair Price Shops (FPS)-wise details individual
ration card holders along with his name, father’s name and type of ration card.
 Village-wise, ward-wise number of beneficiaries.
 Fair price shop details
 FPS wise allotment details
 FPS wise no. of cards and allotment of different commodities for the selected
month are available online for public view.
 Lifting details will be available online:
The quantity of commodities reached FPS from Distribution Centers is known as
Lifting. Delays in lifting are one of the big challenges that department faces. For
day to day monitoring of lifting by different districts and distribution centers,
lifting details will be made available online.
 Sales details of individual FPS
FPS owners will be supposed to submit an affidavit every month with the details
of the sales actually made against the allotment for that month. The sales
quantities will be used to calculate entitlement of quantities that actually be
issued to the shop, keeping into account the previous month’s balance
quantities available in the shop.
This information would be made available on the website on real time basis.
34

35. SMART CARD
Smart Cards [1] are secure electronic devices which are used for storing date
pertaining to the beneficiary, in a secure form. It is pertinent to note the only
authorized persons can view the date stored on the card and/or write information
thereon [3].
The smart cards would be compliant with the unique ID (UID) project called Aadhaar.
When a smart card is used In PDS, the following data can be stored on the card:
1. The name of the Beneficiary, family members.
2. The address of the beneficiary.
3. Bio metrics of the beneficiary and family members.
4. The category In which the beneficiary falls (i.e. APL, BPL, Antodaya) and the
monthly entitlement.
A smart card resembles a debit card in size and shape. Integrated
circuits/microprocessor are embedded in these cards to enable them to process data.
These cards can receive inputs, which are processed — by way of the Integrated
Circuit Card applications — and deliver an output. The card can be embedded with a
hologram to avoid counterfeiting. The microchip will store all information and help
government track utilization. Card-holder can buy from an approved private grocer.
Biometric feature would act as safeguard against misuse. Moreover, it will eliminate
intermediaries, lower pilferage, thus help reduce food subsidy [6].
At all Fair Price Shops , a smart transaction terminal (STT) will be used to match the
fingerprint records on the smart card with that of the consumer’s and authenticate
the transaction.
35

36. POINT OF SALE DEVICE (POS)
A PoS device is a single fully integrated machine having sufficient memory to store
transaction data over a period of time. The objective of using this device is to track off-
take of commodities by beneficiaries with precision and to thereby eliminate avenues
for diversion of stock. The device has the capability of carrying out sales and billing
transactions, and to print the receipt of a completed transaction [3].
The other main features of a PoS device are:
 It is powered by a removable, rechargeable high capacity Li-ion battery,
which supports 170-200 transactions. This device should be able to function
for 5-6 hours before it requires to be recharged.
 It is a tamper proof device to protect data.
 Enables authentication of the biometric fingerprint of beneficiaries.
 Stores data of transactions carried out in the month.
 Can function off-line and the stored data can be transferred subsequently as
and when connectivity becomes available.
FIGURE: 9
36

37. BENEFITS FROM UID
The PDS stands to benefit from the legislative, technology and administrative
infrastructure that are being created for the implementation of the UID program [4].
The key ones are:
 Better Identification:-
Integration with the UID program will lead to better identification of
individuals and families leading to a better targeting and increased
transparency and therefore better functioning of the system and
increased public approval.
 Off Take Authentication:
The UID database will maintain details of the beneficiaries that can be
updated from multiple sources. The PDS can use this database for
authentication of beneficiaries during the Off take recording process . A
mechanism of verifying the ID of the person at the time of delivery of
grains will help in improving the targeting of the grains .
 Legislative Support:
The legislative support in form of the need for submitting the UID number
of several transactions will push residents to acquire a UID. It is being
issued on a compulsory basis. The most convenient mechanism will be for
residents to get a ration card and this will create a supporting
environment for computerization of ration cards.
 Technology Support:
The UID program is putting together technology specifications and
infrastructure to handle enrollment , storage and identity confirmation of all
HP residents. The PDS can leverage this and rapidly move ahead with the
enrollment process.
37

38.  Duplicate And Ghost Detection:
The UIDAI will provide duplicate detection infrastructure to the PDS
program . It can also assist in the development of special tools to assist
in the assessment of eligibility of applicants.
 Support for PDS reform :
The UID will become an important identifier In banking services and day to
day needs of the resident . This can support the PDS reform by as an
example providing the banking account number for a family to effect
direct cash transfer.
38

39. FEASIBILITY STUDY [7]
1. ECONOMIC FEASIBILITY [2] :
 According to the ECONOMIC SURVEY OF INDIA REPORT 2011, The
Central government allocates Rs.428 crores to the Ministry of Consumer
Affairs, Food and Public Distribution out of which Rs.119 is spent of Public
Distribution.
 The Planning Commission Report 2005 says that out of Rs 4 spent on the
PDS only Re.1 reaches the grass root level i.e. 75% of the total money
allocated is not utilized for the purpose it is intended for.
 According to Justice D.P. Wadhwa Report Rs. 8200 is the estimated
loss each year on every fake card caused to the government [2] . If
every FPS has on average 5 fake cards of the 1500 total projected , the
total loss is estimated to Rs. 18,72,47,000.
 If on average Rs. 30,000 is the estimated expenditure on every FPS to
install the proposed system to the 4567 FPS in the state of Himachal
Pradesh , the total expenditure is approximated around Rs.
13,70,10,000.Also the cost of issuing smart cards to 16,31,804 card
holders in the state is approximately Rs. 50 out of which only 50% may be
bourne by the government and the rest by the consumer.
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40. 2 . TECHNICAL FEASIBILITY:
 Technical Requirements for the proposed system consists of a
computer desktop and a Biometric POS for every FPS and a state
centralized server.
 The connectivity required for the maintenance of database can be
segregated into rural and urban . Urban Areas are easily connected
to internet facilities whereas in the rural areas the same can be
achieved through satellite communication and Radio Frequency. Help
can also be taken from state run schemes like LOK MITRA and GRAM
SUGAM which aims at enhancing rural connectivity. The GRAM SUGAM
scheme working in the PPP model aims to set-up 3366 e-governance
centers at panchayat level in the state.
3. BEHAIVOURAL FEASIBILITY:
 The implementation of the proposed system may create resistance
in the common masses . Resistance can be reduced by implementing
the system parallel . i.e. Introduction of computers for some works and
doing the rest of the work manually.
 The Fair Price Shop owner can be trained in using the system.
40

41. DATA FLOW DIAGRAMS
LEVEL-0 [CONTEXT DIAGRAM]
FIGURE: 10 [DATA FLOW DIAGRAM FOR PDS]
41

42. Database of card holders of FPS
FINGER
PRINT
Check for category
&material allocated
POS VERIFI-
USER CATION
SMART
CARD FPS
RATION ONLINE
GIVEN & ENTRY TO
BILL UPDATE
GENERATED DATABASE
TRANSACTION DATABASE STOCK DATABASE
CENTRALIZED SERVER
FIGURE 11 [DATA FLOW DIAGRAM FOR PDS]
42

43. FLOW DIAGRAMS
NETWORK DIAGRAM [8]:
FIGURE : 12 [NETWORK DIAGRAM FOR MONITORING OF PDS]
43

44. SYSTEM CONCEPT DIAGRAM:
FIGURE: 13
LINK BETWEEN FPS AND GODOWN:
FIGURE: 14
44

45. FPS SMART CARD [10] CREATION FLOW:
FIGURE: 15
45

46. FLOW DIAGRAM FOR PROPOSED AUTOMATION OF PDS
YES
COMMUNICATION LINK
46

47. FIGURE: 16
47

48. DATABASE DESGIN USING TABLES
TABLE: 1 FOR FPS (STOCK MAINTENANCE):-
S.NO COMMODITY STOCK QUANTITY QUANTITY REMAINING
PURCHASED
1 WHEAT
2 RICE
3 SUGAR
4 PULSES :
CHANA DAL
KALA CHANA
URAD SABUT
5 COOKING OIL :
REFINED OIL
MUSTARD OIL
6 SALT
7 KEROSENE OIL
TABLE: 2 FOR USER IDENTIFICATION:-
PDS CARD No. NAME U.I.D.
TABLE: 3 FOR CATEGORIZATION:-
PDS CARD No. CATEGORY
48

49. TABLE: 4 DEPICTING ALLOCATED COMMODITIES:-
CATEGORY APL BPL AAY IRDP
QUANTITY PRICE QUANTITY PRICE QUANTITY PRICE QUANTITY PRICE
WHEAT
RICE
SUGAR
CHANA DAL
KALA
CHANA
URAD
SABUT
REFINED
OIL
MUSTARD
OIL
SALT
KEROSENE
OIL
49

50. TABLE: 5 SHOWING BILLING:-
RATION CARD ITEM PRICE PER QUANTITY NET VALUE
NO UNIT ITEM PURCHASED
WHEAT
RICE
SUGAR
CHANA DAL
KALA CHANA
URAD SABUT
REFINED OIL
MUSTARD OIL
SALT
KEROSENE
OIL
TOTAL VALUE
50

51. RELATIONSHIP BETWEEN TABLES
CATEGORY
TABLE 3 TABLE 4
PDS CARD NUMBER
TABLE 5
FIGURE: 17
TABLE 3:- TABLE FOR CATEGORIZATION OF USERS
TABLE 4:- TABLE DEPICTING ALLOCATED COMMODITIES
TABLE 5:- TABLE SHOWING BILLING.
Table 3 and table 4 are linked to each other through common field ― category‖.
Table 3 and table 4 are linked to table 5 through the common field ―PDS card number‖.
The entire liking procedure has been done to generate a fps bill according to the
category of the card holder and quantity purchased according to government decided
subsidized rates.
51

52. ENTITY-RELATIONSHIP MODEL
1. ENTITY:
 CUSTOMER
 FAIR PRICE SHOP (FPS)
2. ATTRIBUTES:
 FOR ENTITY CUSTOMER:
 NAME
 PDS CARD No.
 CATEGORY
 QUANTITY OF EACH MATERIAL ALLOCATED
 BIOMETRIC INFORMATION
 FOR ENTITY FPS:
 FPS NO(unique)
 Total number of smart cards under it
 Material to be allocated by the FPS
 Transaction details
52

53. ENTITY-RELATIONSHIP DIAGRAM
QUANTITY
NAME PDS CARD No. ALLOCATED
CUSTOMER
CATEGORY
BIOMETRIC
INFORMATION
SERVICES
TOTAL No. OF SMART CARDS
FPS NO (unique)
UNDER IT
FAIR PRICE SHOP
MATERIAL
TRANSACTION ALLOCATION DETAILS
FIGURE:DETAILS
18
FIGURE: 18
53

54. CONLUSION
The present study that is ―AUTOMATION OF PUBLIC DISTRIBUTION SYSTEM IN
HIMACHAL PRADESH‖ is an alternative method for monitoring the supply and
distribution of grains and is focused on to bring out cost-effective, corruption free and
transparent system of PDS in Himachal Pradesh. The project if implemented shall also
reduce the time consuming process for registration of new ration cards. The process
will verify all the personal details of beneficiaries with the existing database based on
UID, PAN and Panchayat family Register.
54

55. SCOPE FOR FUTURE STUDY
There is considerable future scope to carry out specific study for ―AUTOMATION OF
PUBLIC DISTRIBUTION SYSTEM IN HIMACHAL PRADESH ‖. The process can
further be enhanced with interfacing it with the data base of Health Insurance Scheme,
Mahatma Gandhi National Rural Employment Guaranteed Scheme and exponential
growth of population on year to year basis resulting in automatic calculation of demand
and supply of food grains or future planning process.
55

56. REFERENCES
1. Contify BANKING; POSTED: May 26, 2011 ―India should use smart card in
Public Distribution System, suggests world bank‖.
2. The Tribune; dated July 24, 2011 ―NAC clears Food Security Bill draft’.
3. JUSTICE WADHWA COMMITTEE REPORT
4. UID and PDS System Report
5. e-himapurti website
6. OUTLOOK Magazine; dated; March 24, 2008 ―for a sloppy PDS, the smart card
is perfect remedy-hopefully‖.
7. Elias M. Awad; ―Systems Analysis and Design‖ Second Edition.
8. Presentation By Food, Civil Supplies and Consumer Affairs Department
Government of Gujrat, Gandhinagar; ―Smart PDS- A complete e-Governance
Solution for Gujarat State Public Distribution System‖.
9. Bradley; ―Programming in Visual Basic 6.0‖.
10. Aditya Kwatra February- March 2002: (Research Project)-―Finger print
recognition and using it to implement a computer controlled locking system‖, IIT
Roorkee, India.
56