GNFC Ltd to disburse fertilizer subsidy through blockchain

NITI Aayog will implement a proof-of-concept application of blockchain technology in partnership with GNFC fertilizer subsidy management

GN Bureau | June 30, 2018


#NITI Aayog   #GNFC   #blockchain   #fertilizer subsidy  

NITI Aayog will implement a proof-of-concept application of blockchain technology in partnership with Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC) fertilizer subsidy management.

 
They will jointly develop the use case, undertake research, interact with multiple stakeholders, develop blockchain solutions, exchange learnings, organise forums, and disseminate learnings across their networks. Learnings, insights and outcomes of the PoC (Proof-of-concept) will enable NITI Aayog to suggest policy recommendations and actions in strengthening the subsidy mechanism, making it more transparent and immune to leakages.
 
Fertilizer units manufacture approximately 31 Million MT of fertilizers across the country, where total approximately Rs 70,000 crore of subsidy is disbursed to the manufacturing units. The subsidy disbursal takes two to three months’ time. There are multiple entities involved in the verification process, and the transaction process is very cumbersome which has the potential to be automated to give significant efficiency gains.
 
With the implementation of blockchain technology, it is expected that the distribution will become effective and efficient, and subsidy transfer could be automated and made real time.  Overall implementation ensures that there is no dependence on intermediary agencies to prove the validity of transactions and resulting subsidy claims.
 
The blockchain based process will also use smart contracts which will enable quick and accurate reconciliation of transactions between multiple parties with minimal human intervention. Implementation platform is such that process transparency is evident, transactions cannot be altered and audit trails of transactions are available.
 

Comments

 

Other News

Understanding immunity: How to boost it during Covid-19

In a first, the Department of Home Science, Sri Padmavati Mahila Visvavidayalam (Women’s University) Tirupati, Andhra Pradesh, recently organized an international webinar on “Nutrition and Immune System Support during COVID-19 Pandemic”. Speakers included eminent national and internationa

Covid-19: India’s recovery rate improves to 59.43%

Even as Unlock enters the second phase, the number of Covid-19 infections continues to rise to record levels and India remains No 4 in the worldwide list, yet there is glimmer of hope: its recovery rate is also rising in tandem. There are 1,27,864 recovered cases more than the active Covid-1

Coming soon at a station near you: private trains!

A long-debated idea is finally coming to fruition as the Indian railways has decided to join hands with the private sector, in running some train services to begin with. The ministry of railways has invited ‘request for qualifications’ (RFQ) for private participation for operatio

A place of local democracy in pandemic governance: The case of Mumbai

Democracy in India is now taken for a fact, with an unstated assumption that all our institutions are democratic and hence often our successes and more often failures are attributed to ‘democracy’. However, a key frontier where democracy remains a challenge is that of local governments and that

Why TikTok, other apps were banned: “Engaged in anti-India activities”

India, facing China’s aggressiveness at border, has banned 59 smartphone apps, including TikTok, as they were indulging in activities harmful to India’s sovereignty and integrity. The reason cited was: “in view of information available they are engaged in activities which [

Gaganyaan mission not affected by pandemic

The launch of India’s first human space mission, ‘Gaganyaan’, will not be affected by Covid-19 and preparations are going on in the right direction even amid the pandemic. This was disclosed by minister of state (independent charge) development of north eastern region (DoNE



Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter