eGov: Niti Aayog and GNFC are exploring Blockchain technology for fertiliser subsidy management

Both the organisations have signed a Statement of Intent (SOI) to work together towards implementing a Proof-of-Concept (PoC) application using Blockchain Technology for fertiliser subsidy management.

Must Read

Israeli startup Coralogix raises $25 million in Series B funding

Israel-based Coralogix which deals in machine learning-powered log analytics and monitoring solution has raised $25 million in Series B round, bringing the company's total amount raised to $41.2 million

Top 5 cyber threats CIOs need to be aware of in APAC region

COVID-19 pandemic has significantly impacted the security of businesses and individuals worldwide. CIOs need to be aware of emerging challenges in the APAC region.

ESDS awarded as India’s ‘Best Workplaces for Women 2020’

ESDS Software Solution said that it has been awarded as “India’s Best Workplaces for Women 2020” under the Top 50 category, certified by “Great Place to work” organization

Central government’s think-tank, and (GNFC) are exploring Blockchain technology for efficient management of fertiliser subsidy. Both the organisations have signed a Statement of Intent (SOI) to work together towards implementing a Proof-of-Concept (PoC) application using Blockchain Technology for fertiliser subsidy management, said a statement.

Under this agreement, 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, said Niti Aayog. Both the organisations also claimed that 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.

According to GNFC, fertilizer units manufacture approximately 31 million MT of fertilizers across India and about 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,” said GNFC.
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, said Niti Aayog.

According to technology experts, Blockchain platform has inherent characteristics of distributed computing and ledger keeping of transactions – confidentiality, authenticity, non-repudiation, data integrity, and data availability. Overall implementation ensures that there is no dependence on intermediary agencies to prove the validity of transactions and resulting subsidy claims.

GNFC said that 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.

Subscribe to receive the day's headlines from Tech Observer straight in your inbox

Leave a Reply

*The moderation of comments is automated and not cleared manually by techobserver.in. Embedding of any link and use of abusive or unparliamentary language are prohibited.
- Advertisement -

Latest in TECH

Israeli startup Coralogix raises $25 million in Series B funding

Israel-based startup Coralogix which deals in machine learning-powered log analytics and monitoring solution has raised $25 million in Series B funding round, bringing the company's total amount raised to $41.2 million
- Advertisement -SAP Hana

Related Articles