NITI Aayog and Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC) today signed a statement of intent (SOI) to work together towards using the blockchain technology for fertiliser subsidy management.
NITI Aayog and Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC) today signed a statement of intent (SOI) to work together towards using the blockchain technology for fertiliser subsidy management. According to an official statement, the GNFC and the Aayog will work on implementing a proof-of-concept (PoC) application for using the technology in subsidy disbursements. They will jointly develop the use case, under take research, interact with multiple stakeholders, develop blockchain solutions, exchange learnings, organise forums, and disseminate learnings across their networks, the statement said.
Learnings, insights and outcomes of the PoC will enable NITI Aayog to suggest policy recommendations and actions in strengthening the subsidy mechanism, making it more transparent and immune to leakages, it added. Approximately Rs 70,000 crore of subsidy is disbursed to manufacturing units every year for selling around 31 million MT of fertilisers below cost.
Noting that subsidy disbursal takes two to three months’ time, the statement said, “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.”
Blockchain platform have inherent characteristics of distributed computing and ledger keeping of transactions i.e. confidentiality, authenticity, non-repudiation, data integrity, and data availability. The blockchain based process, the statement said will also use smart contracts which will enable quick and accurate reconciliation of transactions between multiple parties with minimal human intervention.