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

Vote in the time of Covid: EC hosts global webinar

On completion of one year of the chairmanship of the Association of World Election Bodies (A-WEB), the Election Commission (EC) of India on Monday hosted an international webinar on the theme of “Issues, Challenges and Protocols for Conducting  Elections during COVID-19 : Sharing Country

Freedom of press in India is a myth: Tewari

Sections of the news media have degenerated into becoming the pet performing poodle of the government, says Manish Tewari, former information and broadcasting minister and a member of the Lok Sabha. In a webinar chat with Kailashnath Adhikari, MD, Governance Now, on Friday as part of the Vis

In free fall: Close to 1 lakh Covid-19 cases a day

India has been hitting upwards of 90,000 fresh cases of Covid-19 every day for some time now, as the virus continues to spread amid further Unlock. The recoveries, on the other hand, are also creating new records. The country recorded 96,424 new cases of infection – the highest single-

India has new record of recoveries – but new cases remain high too

India once again registered 90,000-plus fresh cases of Covid-19 in a day, even as the number of recoveries too registered a new high – 82,961. The number of those who have recovered so far is now nearly four times higher than the number of active cases. India continues to record a spat

“In financial sector, governance is the key”

The fall of financial institutions is largely a result of governance failures and company board members must ensure checks and balances for the larger ecosystem, says entrepreneur Shachindra Nath, executive chairman and managing director, U GRO Capital. In an webinar chat with Kailashnath Ad

More discussion in parliament beneficial for country: PM

As parliament on Monday commenced its special session amid the raging Covid-19 pandemic, prime minister Narendra Modi underlined the importance of debate in the house, saying that it is “beneficial” for the country. “Several important decisions will be taken in this session

Governance Now Tech Masterclass State Governments

Archives

Current Issue

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter