VIJAYAWADA: The State Cabinet, chaired by Chief Minister N Chandrababu Naidu at the State Secretariat on Tuesday, decided to discontinue the delivery of rations through Mobile Dispensing Units (MDUs) and restore the Fair Price Shops (FPSs) system for the distribution of monthly rations to beneficiaries from June 1.
However, doorstep delivery of rations will continue for beneficiaries of above 65 years of age and persons with disabilities.
Disclosing the Cabinet’s decisions to the media, Civil Supplies Minister Nadendla Manohar, accompanied by Information and Public Relations Minister Kolusu Parthasarathy, stated that IVRS feedback revealed 25% of beneficiaries were not receiving their rations.
Additional complaints included: 26% of MDU operators charging inflated prices, a single MDU covering the area of three FPSs in 15 to 17 days, diversion of ration commodities (with 288 cases registered), and a shortage of MDU operators (570 vacancies). These issues led to the decision to discontinue the MDU system. The move is expected to save `353.81 crore for the State exchequer, Manohar said.
Recalling the earlier system of distributing essential commodities through 29,000 FPSs, the Minister criticized the previous government for abolishing it in favour of the MDU model. To implement this system, the previous government spent Rs 1,860 crore on procuring 9,260 MDU vehicles, and an additional Rs 200 crore on a pilot project.
However, the MDUs not only failed to benefit consumers but also facilitated rice smuggling, with approximately 200 cases registered against MDU operators.
FP shop distribution system will curb PDS rice diversion: Min
Although the operators claimed to deliver 93% of rations within three days, many consumers did not receive their goods properly. Each MDU vehicle receives a monthly payment of Rs 27,000 from the Corporation, yet 570 vans remain unaccounted for.
Despite the hardships faced by beneficiaries, the government was spending Rs 385 crore annually on MDUs. Through FPSs, consumers can collect items at their convenience, Manohar noted.
“Therefore, from June 1, we will resume distribution through Fair Price Shops. This system will curb rice diversion. Additionally, FPSs will be enabled to sell other commodities as well,” he added.
He also announced that individuals who acquired MDU vehicles through SC, ST, BC, EBC, and other corporations and paid 10% of the cost will be given the vehicles free of charge.
The Civil Supplies Minister further said that under the first phase of the Deepam-2 scheme, around 99,700 beneficiaries availed themselves of the free gas cylinder facility.
In the second phase, approximately 70 lakh people have already registered for free gas cylinders. In Phase 3, the government plans to ensure the gas subsidy amount is deposited directly into beneficiaries’ accounts in advance.
Speaking on the occasion, Minister Parthasarathy said the Cabinet also approved investment proposals previously cleared by the State Investment Promotion Board (SIPB) during its May 15 meeting.
The Cabinet gave its approval for promulgation of the India International University of Legal Education and Research of the Bar Council of India Trust at Andhra Pradesh Ordinance, 2025, which facilitates the establishment of the India International University of Legal Education and Research (IIULER) at Amaravati by the Bar Council of India Trust. Students from Andhra Pradesh will receive a 20% reservation at IIULER, enabling access to quality legal education.
The Council of Ministers approved the creation of 2,260 Special Education Teacher posts (1,136 Secondary Grade Teachers and 1,124 School Assistants) by converting an equal number of vacant surplus posts. This decision complies with the Supreme Court of India’s directive in W.P.(C) No. 132/2016 and aims to enhance educational opportunities for students with special needs.
Job for slain TDP leader’s son
The Cabinet approved the proposal to provide permanent employment to Thota Veeranjaneyulu, son of TDP activist Thota Chandraiah who was allegedly killed by his political rivals on January 13, 2022 in Macherla constituency of Palnadu district, by amending relevant Rules/Act Provisions.
Other key decisions
To issue a preliminary notification for transfer of Punganur, Chowdepalli, Somala, and Sadum mandals from Palamaner Revenue Division of Chittoor District and Rompicharla Mandal from Chittoor Revenue Division of Chittoor District to Annamayya District under Madanapalle Revenue Division. Cabinet approved the proposal for the Andhra Pradesh Leather & Footwear Policy (4.0) - 2024-30