PDS reform using Aadhaar, the Kotkasim way

The project covers around 20,000 ration card holders, who had to open zero-balance, no-frills bank accounts for getting the subsidy. Initial public resistance was overcome by the district administration by transferring three months of subsidy in advance to the bank accounts. Results of the project have shown that substantial economies in subsidy outgo can be achieved by use of Aadhaar platform. Kotkasim, which was was selling its entire allotted stock of 84,000 litres of kerosene a month before the project started, is now selling 22,000 litres — ample proof that subsidised kerosene was being diverted for other purposes, mainly to adulterate diesel. By using Aadhaar, the subsidy has gone directly to the target households who can then use it to purchase items from PDS shops at market price.