17 States implement ‘One Nation One Ration Card’ system, allowed additional borrowing of Rs 37,600 crore
A fair price shop in a rural areaNegliea/Wikimedia Commons

17 States implement ‘One Nation One Ration Card’ system, allowed additional borrowing of Rs 37,600 crore

New Delhi, March 12, 2021

Seventeen States have successfully operationalised the “One Nation One Ration Card" system with Uttarakhand being the latest to complete the reform.

States completing One Nation One Ration Card system reform are eligible for an additional borrowing of 0.25% of the Gross State Domestic Product (GSDP).

Accordingly, these States have been granted additional borrowing permission of Rs 37,600 crore by the Department of Expenditure of the UnionMinistry of Finance, an official press release said.

The release said that the One Nation One Ration Card System is an important citizen-centric reform. Its implementation ensures the availability of ration to beneficiaries under the National Food Security Act (NFSA) and other welfare schemes, especially the migrant workers and their families, at any Fair Price Shop (FPS) across the country.

The reform especially empowers the migratory population, mostly labourers, daily wagers, urban poor like rag pickers, street dwellers, temporary workers in organised and unorganised sectors, domestic workers etc, who frequently change their place of dwelling, to be self-reliant in food security. This technology-driven reform enables the migrant beneficiaries to get their entitled quota of food grains from any electronic point of sale (e-PoS) enabled fair Price Shops of their choice anywhere in the country, the release said.

The reform also enables the States to ensure better targeting of beneficiaries, eliminating bogus, duplicate and ineligible cardholders, resulting in enhanced welfare and reduced leakage, it said.

Further, to ensure seamless inter-state portability of a ration card, Aadhar-seeding of all ration cards as well as biometric authentication of beneficiaries through automation of all Fair Price Shops (FPSs) with the installation of electronic point of sale (e-PoS) devices are essential.

Therefore, an additional borrowing limit of 0.25% of the Gross State Domestic Product (GSDP) is allowed to the States only on completion of both Aadhar Seeding of all the ration cards and beneficiaries in the State and automation of all the FPSs in the State.

Given the resource required to meet multiple challenges posed by the COVID-19 pandemic, the Government had on May 17, 2020, enhanced the borrowing limit of the States by 2% of their GSDP.

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