Cabinet Approves ₹25,530 Crore Extension of Sarthak-PDS to Bring AI into Ration System

The Union Cabinet has approved a ₹25,530 crore extension of the Sarthak-PDS scheme (Scheme for Assistance in Ration Transport and Handling-Income with Automation in the Public Distribution System) for five years. The scheme will use artificial intelligence (AI) to identify beneficiaries in real time, track the movement of food grains, and handle citizen complaints through phone calls and WhatsApp.

With this approval, the scheme will run from April 2026 to March 2031. Its aim is to modernise India's Public Distribution System (PDS), which provides subsidised food grains to the poor through ration shops.

As part of the upgrade, the government plans to introduce three AI-enabled systems under what is being called SMART PDS Phase 2, supported by the IndiaAI Mission under the Ministry of Electronics and IT. The approved reforms include financial help to states for moving food grains within their borders, support for fair price shops, and funding for wider PDS modernisation.

Officials described this as a major structural reform of the entire delivery system — covering logistics, transportation, material handling and grievance redressal. They noted that the PDS provides basic rations to around 80 crore citizens every month and is often cited as an example of inclusive growth.

For exam aspirants, this connects food security, the PDS, the use of technology (AI) in governance, and welfare delivery — all high-value topics for prelims and mains.