The Government of India officially launched ‘Anna Chakra’, a tool designed to optimize the Public Distribution System (PDS) supply chain, along with the SCAN (Subsidy Claim Application for NFSA) portal. These initiatives are aimed at enhancing the efficiency of the PDS logistics network and streamlining the subsidy claim process for States.
Anna Chakra: Optimizing the PDS Supply Chain
‘Anna Chakra’ is a tool developed to improve the efficiency of the PDS logistics network across India. Spearheaded by the Department of Food and Public Distribution, this initiative was created in collaboration with the World Food Programme (WFP) and the Foundation for Innovation and Technology Transfer (FITT) at IIT-Delhi. The tool uses advanced algorithms to identify the most efficient routes for the transportation of food grains within the PDS, ensuring a smooth flow from farmers to Fair Price Shops (FPS).
This initiative will have a substantial impact on the operations of India’s vast food security program, which serves 81 Crore beneficiaries. By optimizing supply chain routes, the system will reduce costs, improve delivery timelines, and minimize fuel consumption. This will result in significant savings in logistics costs and a reduction in the carbon footprint associated with transportation-related emissions.
The route optimization process has been applied across 30 states, with an estimated cost saving of approximately INR250 Crores annually. The optimization has reduced the QKM (quantity in quintals x distance in kilometers) by 58 Crores. The exercise has covered 4.37 lakh Fair Price Shops and approximately 6,700 warehouses involved in the PDS supply chain.
A crucial component of this optimization is the integration of the interstate route tool with the Freight Operations Information System (FOIS) portal of Indian Railways through the Unified Logistics Interface Platform (ULIP). Additionally, the tool is now linked with the PM Gati Shakti platform, which hosts the geo-locations of FPSs and warehouses across the country.
SCAN Portal: Streamlining Subsidy Claims
The SCAN portal introduces a single window submission system for subsidy claims under the National Food Security Act (NFSA). This new portal will enable States to submit subsidy claims, while also facilitating their scrutiny and approval by the Department of Food and Public Distribution (DFPD). The portal will automate the entire workflow of releasing and settling food subsidies, reducing manual intervention and speeding up the process through rule-based processing.
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This automation is expected to enhance the efficiency of subsidy claim settlements, ensuring a faster and more transparent system for both the States and the central government. By handling all aspects of the subsidy claim process online, SCAN aims to expedite settlements and reduce administrative delays.
Union Minister of Consumer Affairs, Food and Public Distribution, and New & Renewable Energy, Pralhad Joshi launched the Anna Chakra and SCAN Portal on December 5, 2024.