IT can solve Public Distribution System mess, says Nandan Nilekani

A panel headed by Unique ID Authority chairman Nandan Nilekani has suggested computerisation of public distribution system (PDS) and use of cash transfers and coupons to streamline subsidy distribution. "The large focus of the report is to make system more efficient (and) to make sure people have choice," Nilekani told reporters on Wednesday after submitting the report to finance minister Pranab Mukherjee. The first phase of PDS revamp will focus on supply chain improvement while the second on direct transfer of subsidy, according to the task force. Nilekani has proposed use of coupons, smartcards, and direct cash transfers, along with GPS tracking of trucks carrying ration, as some methods of cleaning the system. It has suggested creation of a National Information Utility or Public Distribution System Network (PSDN) by April 2012 and initiation of pilot projects by December 2012. There are about 4.62 lakh fair price shops (FPS) that distribute commodities, like wheat, rice, sugar and kerosene, worth over Rs 30,000 crore every year to 18 crore families. The government has accepted the report of the Task Force in principle, Nilekani said adding that it will now process it and take appropriate action. "We have serious issues in terms of leakages in subsidy transfers and any system that controls these leakages is a good idea...The only issue is with execution and as long as that is taken care of, it's a smart way of dealing with the problem," said Sonalde Desai, Senior fellow, National Council for Applied Economic Research. "A significant proportion of subsidised fuel does not reach the targeted beneficiaries and there is largescale diversion of subsidised kerosene...to ensure greater efficiency, cost effectiveness and better delivery...the goevrnment will move towards direct transfer of cash subsidy...," Mukherjee had said in the last budget. PDS is fraught with problems. "The PDS suffers due to wholesale problems such as largescale pilferage and diversion, duplicates and ghost beneficiaries, wrongful exclusion and inclusion," the report said. About 29 lakh fake ration cards were seized in Maharashtra alone, while Tamil Nadu is estimated to have about 15 lakh fake cards in circulation.

Infosys staff want founders to stay, want Nandan Nilekani back

A near majority, 50%, think that the company is losing ground to TCS , while 29% attribute poor performance to poor leadership.

Employees of Infosys, which is being criticised for giving CEO positions to founders rather than professionals, have voiced strong support for the practice, an exclusive opinion poll commissioned by ET has found.

The poll, conducted among 201 Infosys employees in Bangalore by market research firm AZ Research , has found that more than a simple majority of employees (61%) want founders to become CEOs and think that it is a perfect arrangement.

About 75% of those surveyed think that Nandan Nilekani, one of the founders and former CEO, who quit two years ago to join the government, should come back as the CEO. A big majority, (74%), feels that Narayana Murthy , the iconic chairman, who is set to step down from his executive role in August this year, should continue to play an active role and not retire from the company.

But the poll, which was conducted over Wednesday and Thursday, also found a strong level of concern over the company's financial performance and its ability to keep up with competition. A near majority, 50%, think that the company is losing ground to TCS. About 29% attribute the poor performance to poor leadership, while 43% blame lack of aggression.

Nearly four in ten employees admitted that Infosys lacked the imagination to fire up its numbers and that Infosys had lost some of its past glory under Kris Gopalakrishnan , the current CEO of Infosys who is widely believed to succeed as chairman or vice-chairman.

Support for Mohandas Pai , the former HR director, whose abrupt resignation earlier this month and caustic comments about founders rotating the CEO role among themselves triggered a controversy, is also quite high.