Anna Chakra and SCAN Portal

Syllabus: GS2/ Governance

Context

• The Union government recently launched the Anna Chakra and the Subsidy Claim Application for NFSA (SCAN) portal, ushering in reforms to modernize the Public Distribution System (PDS) and streamline subsidy claim processes.

What is Anna Chakra?

• It is developed by the Department of Food and Public Distribution in collaboration with the World Food Programme (WFP) and IIT Delhi’s Foundation for Innovation and Technology Transfer (FITT). 
• It employs advanced algorithms to optimize food grain movement across the supply chain, involving farmers, transporters, warehouses, and Fair Price Shops (FPS).

Key features of Anna Chakra

• Route Optimization: Leveraging algorithms to identify efficient routes, minimizing transportation time and costs.
• Integration with Railways and Logistics Platforms: Integrated with the Freight Operations Information System (FOIS) of the Railways and the PM Gati Shakti platform, which maps geo-locations of FPSs and warehouses.
• Environmental Benefits: Reduced transportation-related emissions lower the carbon footprint, contributing to sustainable development.

SCAN Portal

• The Subsidy Claim Application for NFSA (SCAN) Portal aims to simplify and expedite the subsidy claim process for states under the NFSA.
• Key features include:
  • Single-Window Submission: Ensures streamlined claim submission by states.
  • Automated Workflow: Rule-based automation of claim scrutiny, approval, and settlement.
  • Efficiency in Subsidy Settlement: Enables real-time monitoring and reduces delays in fund disbursal.

Other Initiatives for Food Security

• Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY): Beneficiaries receive 5 kg of wheat or rice free every month.
  • Initially launched during the COVID-19 pandemic in March 2020, it has been extended for five years from January 2024.
• Antyodaya Anna Yojana (AAY): Entitled households receive 35 kg of grains monthly at highly subsidized rates—₹3/kg for rice and ₹2/kg for wheat—irrespective of family size.
• Integrated Management of Public Distribution System (IM-PDS): Facilitates One Nation One Ration Card (ONORC), allowing beneficiaries to access food grains across India, improving migrant workers’ access to food security.
• Decentralized Procurement (DCP) Scheme: Encourages states to procure and distribute food grains directly, reducing logistics costs and ensuring localized management of food security.

Challenges with the PDS System

• Diversion of Food Grains: A significant portion of food grains is leaked during transportation or diverted to the black market.
• Inclusion and Exclusion Errors: Non-eligible households receive benefits, burdening the system.
  • Genuine beneficiaries are excluded due to flaws in the identification process.
• Corruption at Fair Price Shops (FPS), such as under-weighing food grains, selling poor-quality goods, or charging higher prices, undermines the system’s effectiveness.
• Inadequate warehousing facilities lead to spoilage and wastage of food grains.

Way Forward

• Infrastructure Expansion: Strengthen storage and transportation facilities to support the growing scale of operations.
• Technological Integration: Leverage artificial intelligence and blockchain for real-time tracking and reducing inefficiencies.
• Sustainable Practices: Promote green logistics and energy-efficient transportation solutions to reduce the carbon footprint further.

Source: PIB