Pralhad Joshi launches ‘Anna Chakra’, the Public Distribution System Supply chain optimisation tool and SCAN

Newdelhi:5/12/24:The Union Minister of Consumer Affairs, Food and Public Distribution and New & Renewable Energy, Shri Pralhad Joshi launched ‘Anna Chakra’, the Public Distribution System (PDS) Supply chain optimization tool and SCAN (Subsidy Claim Application for NFSA) portal a significant step towards modernizing the Public Distribution System and subsidy claim mechanisms of the States.

“Anna Chakra” PDS Supply Chain optimization, spearheaded by the Department of Food Public Distribution, is a landmark initiative to enhance the efficiency of the PDS logistics network across the country. Developed in collaboration with the World Food Programme (WFP) and Foundation for Innovation and Technology Transfer (FITT), IIT-Delhi, the project leverages advanced algorithms to identify optimal routes and ensure seamless movement of food grains across supply chain nodes. An operation of this magnitude involves a complex supply chain, relying on multiple stakeholders starting from farmers to Fair Price Shops. This makes the initiative unique which helps improve the speed and efficiency of the world’s largest food security program providing food safety net to 81 Crore beneficiaries. Besides improved efficiency and cost savings through the streamlined delivery routes reducing fuel consumption, time, and logistics costs, it also provides environmental benefits of lower carbon footprint due to reduced transportation-related emissions.

The route optimization assessment has been done for 30 states and the results show tremendous promise with the estimated cost savings of about Rs. 250 Crores per annum. QKM (quantity in quintal x distance in KMs) which is the objective function of this entire exercise has been reduced by 58 crores.  This exercise has covered 4.37 Lakhs Fair Price Shops and approx. 6700 warehouses involved in PDS supply chain. The interstate route optimization tool has been developed for optimization of the PDS movement between the states and it is integrated with the FOIS (Freight Operations Information System) portal of the Railways through the Unified Logistics Interface Platform (ULIP).  A significant milestone in this effort is the integration of the optimization tool with the PM Gati Shakti platform which now houses geo-locations of FPSs and warehouses across the states.

SCAN (Subsidy Claim Application for NFSA) portal will provide for a single window submission of subsidy claims by states, claim scrutiny, and approval by DFPD facilitating expeditious settlement process. The portal will ensure end-to-end workflow automation of all the processes for release and settlement of food subsidies using rule-based processing.