(THE NSWSMAN OF INDIA.COM)
New Delhi, June 29, 2018: NITI Aayog and Gujarat Narmada Valley Fertilizers &
Chemicals Limited (GNFC) have signed the Statement of Intent (“SOI”) to work together towards implementing a Proof-of-Concept (“PoC”) application using Blockchain Technology for fertiliser subsidy management. Under the SOI the parties would undertake joint research, interactions, exchange learnings, organise forums, and disseminate learnings across their networks.

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. Fertilizer units manufacture approximately 31 Million MT of fertilizers across country, where total approximately INR. 70,000 Crores of subsidy is disbursed  to the manufacturing units.  The subsidy disbursal takes 2 to 3 months’ time, as there are multiple entities involved in verification process and the process is cumbersome. With 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.

Fertilizer Manufacturing Units send a copy of “on Account claim” to the State Agriculture Department for issuance and uploading of quality and quantity certificates. To get these certificates from test laboratory, fertilizer manufacturing units have to submit all copies of invoices issued during the month. State department submits these invoices to district level offices for verification, which takes on an average 3 to 4 months’ time. Blockchain platform has inherent characteristics of distributed computing and Digital Signature implementation i.e. Confidentiality, Authenticity, Non-repudiation, Data integrity, and Data availability. Implementation platform is such that process transparency is evident, transactions cannot be altered and digital fraud can be prevented. 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.