PDS consumers will soon have a choice to either get subsidised goods from their preferred locations or receive cash, with the government accepting in principle suggestions of the Nandan Nilekani-headed task force on revamping the Public Distribution System.

These suggestions form a part of the report of the task force on 'IT strategy for the PDS' submitted to the Finance Minister Pranab Mukherjee on Wednesday.

After presenting the report to Mukherjee, UIDAI Chairman Nilekani said the government has in principle accepted the report of the task force and "it (government) will now process the report and take appropriate action".

While suggesting a two-phase strategy to revamp the PDS network, the task force said it is desirable the beneficiaries are provided choice of location and mix of commodities and quantities. They can also opt for direct cash subsidy.

Under the current system, a consumer can only buy goods from an assigned ration shop in set quantities.

There are about 4.62 lakh fair price shops (FPS) which distribute commodities, like wheat, rice, sugar and kerosene, worth over Rs 30,000 crore every year to 18 crore families.

To check pilferages in the PDS, the task force has suggested extensive use of IT platform and Aadhar-based bank accounts for providing subsidised food or cash transfers.

Recommending an institutional mechanism for end-to-end computerisation of PDS, the task force has also suggested creation of a National Information Utility or Public Distribution System Network (PSDN) by April 2012 and initiation of pilot projects by December 2012.