Union cabinet on Wednesday approved the ₹25,530 crore extension of the Scheme for Assistance in Ration Transport and Handling-Income with Automation in PDS [public distribution system] (Sarthak-PDS) for five years to use artificial intelligence (AI) to identify beneficiaries in real time, track food grain movement, and handle citizen complaints on WhatsApp and phone calls.Union Minister Ashwini Vaishnaw addresses a press conference after the Cabinet meeting in New Delhi, India, on Wednesday, May 27, 2026. (Photo by Arvind Yadav/Hindustan Times)The scheme now extends from April 2026 to March 2031 and aims to modernize country’s PDS, which distributes subsidised food grains through ration shops.As part of the upgrade, the government plans to introduce three AI-enabled systems under SMART PDS Phase 2, with extended support from the India AI Mission under the IT ministry.Union minister Ashwini Vaishnaw, said that three major reforms to the Sarthak-PDS programme have been approved, including providing financial assistance to states for movement of food grains within states, supporting fair price shops, and funding broader PDS modernisation efforts.“This is a huge structural reform in the PDS system, in the entire delivery system, logistics, transportation, material handling and for redressal of grievances of the PDS beneficiaries,” said Vaishnaw.“Under this programme, a basic ration is provided to 80 crore citizens every month. It is often cited as an example of inclusive growth across the world. The scheme also has a great deal to do with reducing poverty, malnutrition, ensuring proper growth and not stunted growth.”Also Read:Delhi: Annual household limit for ration card eligibility raised to ₹1.20LAI overhaul in PDSUnder one of the AI-enabled systems, called NIRMAL, it will create a real-time AI-based registry of PDS beneficiaries and allow integration with other government schemes and ministries.Another system, ASHA, will act as a multilingual AI grievance platform that can interact with citizens through calls, WhatsApp, IVRS, and chatbots.The government says the platform can handle up to 3 lakh (300 thousand)interactions every day, scaling up from the current 2 lakh (200 thousand) calls made to beneficiaries per month.The third system, SAKSHAM, will use AI tools for supply chain management, including vehicle tracking, QR-code based tracing of food grain bags, demand forecasting, and route optimisation.The government also claims the technology upgrade could reduce food grain transport distances by 15% to 50%, encourage local procurement, and save around ₹280 crore annually through improved logistics.It also estimates a 35% reduction in carbon emissions from the supply chain. QR-coded tags on food grain bags and vehicle location tracking systems are also planned as part of the upgrade.