State Scraps Mobile Dispensing Units

The government aimed at curbing irregularities, including rice diversion and quoting of excess charges by MDU operators - Nadendla Manohar

By :  MD Ilyas
Update: 2025-05-20 20:07 GMT
Civil supplies minister Nadendla Manohar — DC File

VIJAYAWADA: In what is claimed as a major public distribution reform, the Andhra Pradesh Cabinet on Tuesday scrapped the Mobile Dispensing Units (MDUs) for ration distribution, and decided to revert to the traditional Fair Price Shop (FPS) system June 1.


This was announced to the media by civil supplies minister Nadendla Manohar.

He said the government aimed at curbing irregularities, including rice diversion and quoting of excess charges by MDU operators. Essential commodities would now be delivered directly to FPSs, with home delivery facilitated for senior citizens and the persons with disabilities.

Additionally, under the Deepam-2 scheme, nearly 70 lakh beneficiaries have registered for free LPG cylinders. Efforts under way to enable direct benefit transfers, he said.

The minister said that according to an IVRS feedback from ration cardholders, 25 per cent of them reported that they were not receiving essential commodities and 26 per cent of the respondents said MDU operators were charging excess amounts.

Manohar explained that, additionally, each MDU covered only three FPS areas in 15-17 days. There were issues of commodity diversion (288 cases registered), and operator shortage (570 vacancies). “This decision will help the government save `353.81 crore.

The minister recalled that, previously, there was a system of distributing commodities through 29,000 Fair Price Shops.

“The previous government abolished this system and implemented a system of distributing ration items through MDU vehicles. Public funds of `1,860 crore were misused for the purchase of 9,260 MDU vehicles. Another `200 crore was spent on the pilot project. However, these vehicles not only failed to provide any benefit to consumers, but also led to rice smuggling.”

The civil supplies minister said about 200 cases were booked against van operators who got involved in rice smuggling. “They claim to distribute 93 per cent of the rations within three days, but consumers are not receiving goods properly. Each vehicle is being paid ` 27,000 per month from the corporation. There is no information on 570 vans so far,” he said.

Manohar said, “Beneficiaries faced many difficulties due to these vans, which cost ` 385 crore. Through Fair Price Shops, consumers could collect items at their convenient time, but they have lost this flexibility with the vehicles.”

“Therefore, from June 1, we will start distributing goods through Fair Price Shops. We will provide door delivery to senior citizens above 65 years and to differently-abled persons. This system will stop rice diversion. We will also provide facilities to sell other goods through Fair Price Shops.”

For those who obtained vehicles through SC, ST, BC, EBC and other corporations and have paid 10 per cent of the cost, these vehicles will be provided free of cost,” the minister added.


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