Centre Clears Rs 25,530 Cr Umbrella Plan for PDS Reform

The Union Cabinet on Wednesday gave the green light to a comprehensive five-year roadmap for modernising India’s public distribution system. With a total central allocation of Rs 25,530 crore, the newly approved SATHI PDS scheme will serve as an umbrella framework covering ration logistics, fair price shop margins, and technology upgrades. The decision follows a meeting of the Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi. It also revises the existing funding pattern for states and Union Territories, ensuring continued support for intra-state transportation and handling of foodgrains. Running until March 2031, SATHI PDS merges earlier programmes such as SMART PDS and focuses on deploying artificial intelligence, natural language processing, and blockchain for end-to-end traceability. The goal is to create a fully interoperable, citizen-focused distribution network that minimises leakages and ensures timely delivery. The scheme directly supports 81.35 crore beneficiaries covered under the National Food Security Act. It introduces standardised monitoring structures, integrated databases, and AI-powered complaint systems to improve transparency and accountability at every stage. In recent years, the government has already achieved full digitisation of ration cards, Aadhaar seeding, and e-PoS automation in all 36 states and Union Territories. SATHI PDS will consolidate these gains by adding state-level command centres and ISO-certified processing frameworks. By combining financial assistance with advanced digital tools, the initiative aims to fulfil India’s legal and social commitment to provide quality foodgrains and nutrition security to its most vulnerable citizens.