While the World Bank has offered to assist the government in re-structuring the Public Distribution System (PDS), the Delhi government is set to soon initiate a pilot project to launch its ‘cash for food’ programme in the Capital.

This is seen as the first step in overhauling the system.

The scheme is in line with the idea floated by the Centre earlier this year of giving food subsidy in cash to families below the poverty line. The proposal aims at checking losses due to pilferage of foodgrain meant for distribution under PDS.

As part of the scheme, the government is to open bank accounts for ration card-holders from families both below and above the poverty line. The idea is to deposit the difference — between market prices of grains and controlled prices — in the accounts of card-holders.

The idea was floated by the Centre after the Supreme Court-appointed Justice D P Wadhwa Committee called PDS an “inefficient and corrupt” system. The committee, set up in 2006 to check the functioning of PDS, said there is an “unholy nexus between transporters, fair price shop owners and officials of the Department of Food and Civil Supply”.

About the cash for food scheme, Delhi government officials said the Centre has given a go-ahead in principle. They said the Food and Supplies Department has been asked to identify a district to launch the pilot project.

“We will begin with a part of the city and are roping in organisations and agencies to assist us,” Chief Secretary Rakesh Mehta said. He said the government may include global networks like the United Nations Development Programme (UNDP) as part of the project.

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