Govt targets saving ₹250 crore annually with Anna Chakra, SCAN tools by streamlining PDS and subsidy processes

New Delhi: The government on Thursday launched ‘Anna Chakra’ and the Subsidy Claim Application for the National Food Security Act (SCAN) portal, modernizing the public distribution system and streamlining subsidy claim processes.

The twin initiatives aim to enhance operational efficiency, reduce costs and ensure the timely delivery of essential commodities to beneficiaries under the National Food Security Act. Covering more than 437,000 fair price shops and about 6,700 warehouses, the initiative is projected to save ₹250 crore annually through optimized logistics routes, said Pralhad Joshi, Union minister of consumer affairs, food and public distribution.

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As per the minister, the Anna Chakra ‘public distribution system supply chain optimization tool’ was developed by the Department of Food and Public Distribution in collaboration with the World Food Programme (WFP) and the Foundation for Innovation and Technology Transfer (FITT) of the Indian Institute of Technology Delhi (IIT-D). The tool uses advanced algorithms to streamline the movement of food grains across the supply chain.

The tool aims to reduce fuel consumption and transportation costs, thereby lowering carbon emissions and contributing to environmental sustainability. It enhances the efficiency of the logistics network for food security programme, which serves 810 million beneficiaries.

Route optimization has been carried out across 30 states, showing significant potential with an estimated annual cost saving of around ₹250 crore. The initiative has reduced the quantity in quintal multiplied by distance in kilometres (QKM), the key metric of this exercise, by 580 million units.

The interstate route optimization tool streamlines PDS movement between states by integrating with the Railways’ Freight Operations Information System through the Unified Logistics Interface Platform and the PM Gati Shakti platform.

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Meanwhile, through the SCAN portal, states can submit subsidy claims in one place, enabling the Department of Food and Public Distribution to quickly review and approve them. The portal will automate the entire process, ensuring faster release and settlement of food subsidies.

Under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY), beneficiaries receive 5kg of wheat or rice for free every month. The scheme, launched in March 2020 to help during the covid-19 pandemic, has been extended for another five years starting from 1 January 2024.

Under the Antyodaya Anna Yojana (AAY) scheme, households are entitled to 35kg of grains per month from the PDS, irrespective of family size, at ₹3 per kg for rice and ₹2 per kg for wheat.

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