Seventeen states have successfully operationalised “One Nation One Ration Card system” with Uttarakhand being the latest state to complete the reform.

In a statement the Finance Ministry said the states completing One Nation One Ration Card system reform are eligible for additional borrowing of 0.25 per cent of Gross State Domestic Product (GSDP). “Accordingly, these states have been granted additional borrowing permission of Rs 37,600 crore by the Department of Expenditure, Ministry of Finance,” reads the Press release of the Finance Ministry.

As per the ministry, the system is an important citizen centric reform. Its implementation ensures availability of ration to beneficiaries under 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, the government said 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,” reads the Press statement.

The reform also enables the states in better targeting of beneficiaries, elimination of bogus/ duplicate/ineligible card holders resulting in enhanced welfare and reduced leakage. Further, to ensure seamless inter-state portability of a ration card, Aadhaar seeding of all ration cards and biometric authentication of beneficiaries through automation of all FPSs with installation of e-PoS devices are essential.

In view of the resource requirement to meet multiple challenges posed by Covid-19 pandemic, the government on 17 May, 2020 enhanced the borrowing limit of the states by 2 per cent of their GSDP. Half of this special dispensation i.e. 1 per cent of GSDP was linked to undertaking citizen- centric reforms by the states.