The Ministry of Finance has decided to extend the terms of reference of the Task force which was constituted under the Chairmanship of Shri Nandan Nilekani, Chairman, Unique Identification Authority of India (UIDAI) to recommend and implement a solution for direct transfer of subsidies on Kerosene, LPG and Fertilizer to the intended beneficiaries. A Memorandum to this effect was issued by the Department of Expenditure, Ministry of Finance today.

It has been decided to extend the Terms of Reference of the Task Force to the reforms of PDS, so as to also include the following :

i. Identify and suggest required changes in the existing systems, processes and procedures, IT frameworks and supply chain management;

ii. Recommend institutional mechanisms to implement the IT strategy for PDS; and

iii. Examine and suggest an implementable solution for direct transfer of subsidies on food and kerosene to intended beneficiaries with the use of Aadhaar numbers (Unique Identification numbers), Aadhaar enabled transactions and Aadhaar authentication infrastructure.

The Task Force will submit its Report on an IT Strategy for PDS and an implementable solution for direct transfer of subsidies on food and kerosene by August 31, 2011. The Task Force may consult the State Governments and other stakeholders in this regard.

The Ministry of Food and Public Distribution shall provide secretarial assistance to the Task Force for this particular mandate. Joint Secretary (BP, PD & NFSA) has been nominated to function as the nodal officer.