NITI Aayog and GNFC Ltd sign SOI to use Blockchain in Fertilizer Subsidy Disbursement
NITI Aayog and Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC) have signed a Statement of Intent (SOI) to implement fertiliser subsidy disbursement through Blockchain Technology. Both 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.
It must be noted that approximately Rs 70,000 crore of subsidy is disbursed to manufacturing units every year for selling around 31 million MT of fertilisers below cost and the fertilizer subsidy disbursal takes two to three months’ time. 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.