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Cabinet Approves ₹25530 Crore SARTHAK-PDS Scheme to Modernise Public Distribution System

Integrated five-year programme to strengthen foodgrain delivery, FPS dealer support and AI-driven PDS reforms across India

Cabinet Approves ₹25530 Crore SARTHAK-PDS Scheme to Modernise Public Distribution System
Digital India Times Site Icon
  • PublishedMay 27, 2026

The integrated scheme merges two ongoing programmes — “Assistance to State Agencies for intra-State movement of foodgrains and FPS dealers’ margin under NFSA” and “Scheme for Modernization and Reforms through Technology in Public Distribution System (SMART PDS).”
The integrated scheme merges two ongoing programmes — “Assistance to State Agencies for intra-State movement of foodgrains and FPS dealers’ margin under NFSA” and “Scheme for Modernization and Reforms through Technology in Public Distribution System (SMART PDS).”

New Delhi: The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi has approved the continuation and integration of two major public distribution system schemes under a new umbrella programme titled “Scheme for Assistance in Ration Transport and Handling-Income with Automation in PDS” (SARTHAK-PDS), with a central outlay of ₹25,530 crore for the next five years.

The scheme will operate during the 16th Finance Commission cycle up to March 31, 2031, and aims to strengthen the implementation of the National Food Security Act (NFSA), 2013 through improved last-mile delivery of foodgrains and technology-driven reforms in the public distribution system.

The integrated scheme merges two ongoing programmes — “Assistance to State Agencies for intra-State movement of foodgrains and FPS dealers’ margin under NFSA” and “Scheme for Modernization and Reforms through Technology in Public Distribution System (SMART PDS).”

According to the government, SARTHAK-PDS has been designed to provide assured financial assistance for intra-state transport, handling of foodgrains and fair price shop (FPS) dealer margins, while simultaneously building a unified and intelligent digital architecture for the public distribution system.

The government said the programme seeks to modernise and optimise PDS operations using advanced technologies including Artificial Intelligence (AI), Machine Learning (ML), Natural Language Processing (NLP) and Blockchain to improve transparency, efficiency and sustainability in food distribution.

The initiative will include the creation of standardised digital systems, interoperable databases for real-time monitoring, AI-driven grievance redressal and analytics systems, and State Command Control Centres for data-driven oversight of foodgrain distribution networks.

The Centre said the scheme reflects its commitment to ensuring food and nutritional security for 81.35 crore beneficiaries covered under the National Food Security Act.

Over the last decade, the government has undertaken several digital reforms in the public distribution ecosystem, including end-to-end computerisation of the Targeted Public Distribution System (TPDS), Integrated Management of PDS (IM-PDS), and SMART PDS initiatives.

The government said the SMART PDS programme, operational since April 2023, enabled complete digitisation of ration cards, Aadhaar seeding, FPS automation through e-PoS devices, online allocation systems and computerised supply-chain management across all 36 States and Union Territories.

Officials said the new integrated scheme is expected to further strengthen transparency, reduce leakages and improve service delivery efficiency in the country’s food security infrastructure.

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