A working group on PDS reforms headed by Planning Commission Deputy Chairman Montek Singh Ahluwalia has advocated the use of unique identification numbers (UID) to plug the loopholes in the public distribution system (PDS).

The panel, which finalised the draft report on Thursday has also suggested nationwide adoption of a computerised system of tracking transportation and distribution of PDS items.

"We have approved the draft report and will submit it to the Prime Minister next week," Ahluwalia told reporters after the meeting of the working group.

The report outlines several recommendations like use of IT platform, as suggested by Nandan Nilikani, Chairman of the Unique Identification Authority of India (UIDAI), to check leakages and diversion of foodgrains meant for PDS, he said.

Prime Minister's Economic Advisory Council (PMEAC) Chairman C Rangarajan, Food Minister K V Thomas, Delhi Chief Minister Sheila Dixit and Chhattisgarh Chief Minister Raman Singh were among those, who were present in the meeting today.

PMEAC's Rangarajan said: "The working group was set by Prime Minister in 2010 to improve the PDS. There was considerable discussion on how a computerised system can be put in place across the country".

Pointing out the differences in the list of BPL families maintained by the states (10.76 crore) and the centre (6.52 crore), the Group said that the huge difference in numbers has resulted in lower supply of PDS items in some states.

"So, it is necessary to adopt the revised number of BPL families at the earliest based on the latest poverty estimate," it noted.

It also suggested division of population in two categories as 'priority' and 'general' households besides converting foodgrain entitlement from per household to per individual, keeping in view the proposed National Food Security Act.

This apart, the group has recommended that ration shops should display the list of BPL families, SMS-based information should be provided to ration card holders and Public Vigilance Committee should be set up to ensure that ration shops have enough supplies, the report said.

It has also suggested setting up of call-centres with toll-free numbers and web-based complaints registration and monitoring system.

To address the viability of ration shops, the group has suggested steps to improve their functioning through sale of non-PDS items, encourage opening of ration shops five days a week, extending liberal credit and also PPP (public private participation) model, the report noted.