17 states implement 'One Nation One Ration Card system' after Uttarakhand becomes the latest to complete the reform

Seventeen States have operationalised 'One Nation One Ration Card system'. Uttarakhand is the latest State to complete the reform. States completing One Nation One Ration Card system reform are eligible for additional borrowing of 0.25 per cent of Gross State Domestic Product. Accordingly, the Centre has granted additional borrowing permission of Rs 37,600 crore to these States.

Ministry of Finance in a tweet today said, "17 States implement One Nation One Ration Card system with Uttarakhand being the latest State to complete the reform. 17 States now get additional borrowing of Rs. 37,600 crore."

One Nation One Ration Card System ensures the availability of ration to beneficiaries under the National Food Security Act and other welfare schemes at any Fair Price Shop (FPS) across the country. This technology-driven reform especially empowers the migratory population who frequently change their place of dwelling to be self-reliant in food security.

The reform implemented by the NDA government led by Prime Minister Narendra Modi last year especially empowers the migratory population mostly the labourers, daily wagers, urban poor, like the rag pickers, street dwellers, temporary workers in organized and unorganized sectors and domestic workers among others, 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 reform also enables the States in better targeting of beneficiaries, elimination of bogus/ duplicate/ineligible cardholders resulting in enhanced welfare and reduced leakage. 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 per cent of the Gross State Domestic Product (GSDP) is allowed to the States only on completion of both of the following actions:

(i) Aadhar Seeding of all the ration cards and beneficiaries in the State

(ii) Automation of all the FPSs in the State.