Highlights

The Government of India initiaitve One Nation One Card Reform schemes are successfully completed reforms in nine states. The GoI has strengthen the hands of States by several measures in the light of challenges that states faced amid the pandemic to mobilise the financial resources.

Backdrop

  • One of the measure included ‘grant of additional borrowing’ that permitted to get additionsl 2 per cent of the Gross State Domestic Product in FY 2020-21. This step has enabled the States to mobilise the additional financial resources. It was also used to maintain the standards of service delivery to the public.
  • The grant of additional borrowing was also linked to the states carrying out reforms in sectors that are critical for service delivery. This measure ensure long-term debt sustainability and prevent any adverse impact on future.
  • The states identified the “Public Distribution System” (PDS) for reforms.

Reforms in PDS

  • Out of 2 per cent additional borrowings, 0.25 per cent was linked to implementation of ONORCS (One Nation One Ration Card system).
  • It was done with an aim to ensure that the beneficiaries under the National Food Security Act, 2013 especially the migrant workers and their families, get ration from any Fair Price Shop all across India.
  • This measure also aims to better target the beneficiaries, to eliminate the  duplicate or ineligible ration cards.
  • This would also enhance the welfare measures and reduce leakage.
  • To implement it, the reform conditions specifies the Aadhar Seeding for all Ration Cards, biometric authentication of beneficiaries and automation of all the Fair Price Shops across the States.

States that has implemented the ONORC reforms

There are 9 States have successfully completed reforms in Public Distribution System and has implemented One Nation One Ration System (ONORS) so far. The nine states inlcude- Andhra Pradesh, Karnataka, Telangana, Kerala, Haryana, Gujarat, Goa, Uttar Pradesh, Tripura. After these states completed the reforms, additional borrowing permission of Rupees 23,523 crore were granted to them.

Recent developments

The Government of India has allowed these nine states to increase their additional Rupees 23,523 crores under ONOC Scheme.

  • Uttar Pradesh state is the biggest beneficiary of the scheme as the state was provided with an additional borrowing window of Rupees 4,851 crores
  • Karnataka with additional borrowing window of Rupees 4,509 crores
  • Gujarat receiving Rupees 4,352 crores.

These allocations are made based on the suggestion of Department of Food and Public Distribution (DFPD). It is the nodal department that certifies if a state has met the conditions stipulated under the ONOC Scheme. The DFPD operates under Ministry of Consumer Affairs, Food and Public Distribution. In order to become eligible to the reforms, the state has to complete implementing the reforms by 31st December 2020.

In addition to the ONOC Scheme, the reforms specified includes ease of doing business, power sector reforms and urban local body reforms.

About One Nation One Card

The ONOC scheme was launched to make sure all the beneficiaries, especially the migrants can access the PDS from anywhere in India. This will enhance the freedom of the beneficiaries as they are not tied to one Public Distribution System shop. The ONOC scheme is being implemented under the National Food Security Act, 2013.

The scheme aims to eliminate bogus ration cards, ineligible ration cards and duplicate ration cards

Concerns of ONOC

First major concern of ONOC, every state has its own rules in implementing the PDS and it can be difficult in proper implementation of one card in all states. Another concern expressed is that ONOC scheme will further boost corruption in the already corrupted Public Distribution System.

9 states completes One Nation One Ration Card reform 9 states completes One Nation One Ration Card reform