Monday, July 19, 2010: 10:03:01 AM

Retailing News

Smart cards to make PDS effective

With the introduction of the new scheme, the Government of India aims to improve public distribution system

In a bid to make the public distribution system (PDS) effective, a new scheme is being introduced in the domestic market in the form of smart cards for consumers. To gauge its effectiveness, this new scheme is being launched in Chandigarh on a trial basis. Presently, the smart cards are being distributed to consumers, who are located in the districts of Ambala, Sonepat, Karnal and Sirsa. With the success of the new scheme, the Government of India (GoI) plans to introduce the same in other parts of India as well.
 
The scheme, to become completely operational in Chandigarh by December 2010,will cover families belonging to below poverty line (BPL), above poverty line (APL) and Antyodaya Anna Yojana categories.  
 
According to Devan Gupta, managing director of Anand Ltd, a small-sized supplier of kerosene oil in Chandigarh, “The government should first identify the families that require ration, which include food grains and kerosene oil. It has been noticed that there are certain families that sell kerosene oil at high prices in the market instead of using it as they have cooking gas cylinders in their houses, thereby giving rise to hoarding.” 
 
In this context, Kawaljit Singh, managing director of Fresh Agro Private Limited, a mid-sized food grain supplier in Ambala, Haryana, says “The smart cards would be an effective system to check such malpractices as it would have a unique identification number.” As a result, there would be no duplication or misuse of the cards.
 
Measures to prevent hoarding
 
In order to ensure that there is no misuse of the smart cards, GoI with the aid of the National Informatics Centre has developed software that would help in conducting a stringent identity check of consumers using biometric. Fingerprints of consumers would be stored in the smart cards with their monthly salary.
 
Smart transaction terminals (STT) will be available at fair price shops in order to match the fingerprints on the smart cards with the card owner. This will ensure authenticity of the transaction, thereby making the smart card scheme effective and foolproof. 
 
Sabrina Mitchell

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